There are 30.2 million small businesses in the United States. Small business owners often work with companies that are specialized in small business insurance needs. But unfortunately, homeowners don’t have this asset. As a result, many of them end up with gaps in their insurance coverage which may be overlooked by the average homeowner. Here are five common gaps in home owners insurance that you’ll want to address when selecting your coverage.
Percentage Deductibles
Percentage deductibles are essentially a portion of your home’s assessed value, meaning they can be very high if your home has a high assessed value. It’s important to explore the various deductible options you may have, especially if your home is valued highly.
Lack of Jewelry Coverage
Many home owners policies limit jewelry to $2,500, which makes it essential to talk with your agent about any high-value items you may have. Assess the value of our collection, keep up with it over time, and call your agent any time you add a large purchase to it.
Low Liability Limits
Liability is the portion of home owners insurance that manages the expense of any damage or harm to others while they’re on your property. Often, this portion of the coverage is too low to fully cover a homeowner’s assets. Be sure to check your policy figures to be sure your coverage is more than sufficient.
Water Backup
This can be added by an endorsement to your home owners insurance policy. Generally speaking, sewage backup is the fault of the utility company, not the homeowner. But many companies will only claim responsibility up to the curb outside your home, leaving you to deal with the damage inside.
Personal Injury Exclusions
This is commonly excluded from home owners insurance policies and can also be added by an endorsement. Personal injury covers libel, defamation, and slander, and covers you the way liability covers others. In a rapidly changing and sometimes unsettled world, it’s good to have all the protection you reasonably can.
There are many budget decisions to be made when it comes to your home, but your homeowner’s policy really isn’t the place to cut costs. We hope these five common gaps in insurance coverage have helped you out and gotten you thinking about your own policy more carefully. For more information, please contact us today.