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Assessing insurance coverage gaps


A lot of people have gaps in their insurance coverage and don't even realize it. When working with new customers, we often see these kinds of gaps.

Common home coverage gaps

Short on Replacement Value: Did you know 60 percent of homes are under-insured and could not be replaced in the event of a disaster? In these instances, the homeowner would need to pay the shortage to rebuild the home. Check your policy to ensure you have the right coverage to match the full replacement value.

Storm Water Coverage: Severe rainfall can wreak havoc, causing sewer and drain backups that destroy property. Coverage for sewer and drain backups is typically not included with standard home insurance, nor is coverage of the city sewer line that runs from the street to the home, but both can be added to a policy.

Protection for Valuables: If you own expensive jewelry, fine art and other valuables, it’s important to review your policy closely. Most policies cover a $1,000 maximum for valuables, and if your possessions exceed that amount, you’ll need to purchase additional coverage to protect your treasures.

Common auto coverage gaps

Financing Exposure: When the value of a vehicle is less than the amount owed on a loan or lease, a traditional auto policy won’t protect you, but loan/lease gap coverage will. Without it, you must personally cover the difference to pay off the loan or lease if your vehicle is stolen or in an accident.

No Umbrella: In the event of an accident, many auto liability limits do not provide enough protection to cover all damages, leaving you on the hook for additional costs. Make certain you are covered by an umbrella policy to handle excess liability.

Common life coverage gaps

No Protection: In the event of death, life insurance removes financial burdens from your dependents as they deal with the emotional loss. Life insurance can pay off the mortgage, fund college tuition, and support the lifestyle you can no longer provide.

Limited Protection: While any amount of life insurance is better than none, if family members depend on your income, the insurance industry recommends seven to 10 times your annual salary to help your dependents maintain their current standard of living.

Have questions?

Have questions about home, auto or life insurance? Talk with a Bremer Insurance agent for help assessing your policies and finding the gaps I just covered here.