With an estimated 64.8% of Americans being homeowners, the importance of homeowners insurance cannot be denied. However, despite the fact that a home is usually the most valuable investment in a person’s life, homeowners insurance is seriously undervalued.
Most people don’t pay too much attention when signing their home insurance policy, which means that there are often significant coverage gaps in their policy.
There are a lot of details when it comes to a concise homeowners policy, and there’s a major risk involved if you miss out on them.
Here are the most common gaps found in home insurance policies that you should bring up with your agent:
Having flood insurance is important—even if your home isn’t located in a designated flood zone.
Most people know that standard homeowners insurance doesn’t cover water and flood damage. What they don’t realize is that this includes any damage to the home from water pump failure or a sewer backup.
A simple way to ensure coverage for water damage is to have it added to the basic policy for both your home and any possessions therein.
According to USA Today, almost 60% of homes in the United States are undervalued by an estimated 17%. This means that any upgrades you made to the house over time are probably not a part of your home insurance policy.
A simple way to fix this is to update the policy every time you renovate the house or make any improvements to it. Another good strategy is to add an inflation guard clause to your original homeowners insurance policy.
This will make up for any increases in the value of your home. This way, in case of a disaster, the insurance company will be liable to pay for the current value, instead of the value at the time of drawing up the policy.
If you regularly operate a business from your home and have equipment lying around, you need to make sure it is included in your homeowners insurance policy. Typically, the policy will only pay out coverage for equipment used for business up to a limit of $2,500.
If you have equipment that is valued at more than that and additional structures that you use for business, it’s important to lay it all out when drafting the insurance policy to ensure full coverage.
If you’re unclear about the gaps in your homeowners insurance policy, consult professional insurance agents for help.
Western Mass Auto Insurance is a full-service home insurance agents Indian Orchard. We offer affordable home insurance as well as cheap auto insurance and commercial vehicle insurance throughout the Western Massachusetts area.
Our team of experienced insurance agents works with leading insurance providers to get you the best possible coverage for your home, car and other valuables!
Get in touch with us today to request a quote or call (413) 543-3800 for any other queries.