Avoiding Common Personal Insurance Gaps - Knowing what's covered.

The various policies and coverages that make up your insurance portfolio can potentially

ensure you’re able to endure accidents, natural disasters and unexpected circumstances

that might otherwise incur devastating financial losses. These risks may be particularly

prevalent for those who fail to identify and address common coverage gaps.

Consider the following common personal insurance coverage gaps:

Home insurance—Also known as homeowners insurance, this type of policy

can be rife with coverage gaps if you’re not careful and do not work with a

qualified professional. Be particularly mindful of possible gaps, such as natural

disaster exclusions (e.g., floods and earthquakes) and neglecting scheduled

property coverage.

Auto insurance—These policies may also be referred to as car insurance and

are often legally required. Still, while one of the most commonly purchased

types of insurance, auto coverage is easily misunderstood, necessitating

awareness of possible errors, such as fulfilling only minimum requirements.

Life insurance—The right life insurance policy can provide financial stabili-

ty and peace of mind for you and your loved ones. However, insufficient or

outdated coverage could have dire ramifications, exacerbating the already

difficult circumstances of a grieving family. Avoid this hardship by considering

potential shortcomings in your insurance, such as relying on employers’ group

coverage or insufficient policy limits.

Personal umbrella insurance—This type of insurance may not be as well

known as others, but for many people, it can be just as important. An umbrella

insurance policy casts an additional layer of financial protection over various

liabilities that might exceed the coverage limits in other policies, such as auto and homeowners insurance.

Now that you have a better understanding of common coverage gaps and the potential

consequences of being underinsured, you can take steps to shore up your insurance portfolio. Consider the following steps:

Assess liability risks. Certain policyholders may need to manage greater liability risk levels. For example, if you have children or pets, you may want to retain more coverage in your home insurance policy. Similarly, additional financial security may be advisable if you have a teen driver listed on your policy.
Understand endorsements and options. Familiarize yourself with all of the features and enhancements that might be available. While a standard home insurance policy may be sufficient most of the time, specific exclusions, such as for floods and hurricanes, could mean the difference between weathering a financial storm alone or being buoyed by financial aid.
Enlist assistance. The knowledge and experience of a qualified insurance professional can be invaluable as you seek to purchase or reassess the components of your personal lines coverage.
Consider recent life events. When your circumstances change, you should revisit your insurance policies. Getting married, having a child, buying a home or car, or moving should all trigger this review process, as failing to do so could lead to you being underinsured relative to your new circumstances.
Appraise your belongings. Save receipts and document the condition of your possessions, and consider enlisting the assistance of professionals to appraise certain items such as fine art and jewelry.

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We’re committed to making sure that you and your family are adequately insured.

you’ve identified and remedied any coverage gaps.

This infographic is for informational purposes only. It should not be construed as legal, safety or insurance advice.

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