Friday, August 14, 2015

8 Little-Known Insurance Gaps

While you probably have homeowners or renters insurance, car insurance and health insurance at the least, you could still have gaps in those coverages. In a worst-case scenario, these gaps can unexpectedly drain your savings account. Here are a few little-known coverage gaps you may have in your insurance at the Lake of the Ozarks:

1. Not all Auto Insurance is the Same.

While all states require vehicle owners to have auto insurance, but not all types of coverage are mandatory. For example, some states may only require liability. Since not all auto insurance policies are the same, it's important to work with a Lake of the Ozarks insurance agent to customize your policy to fit you and your family's specific needs. You don't want to end up in an accident, just to find that you're covered for one thing and not the other.

2. Transportation Expenses Coverage. 

Does your auto insurance policy cover the cost for a rental car while yours is in the shop after an accident? These transportation expenses can really be a burden if not covered by your insurance. Talk with your insurance agent to see if transportation expenses are covered by your current policy or not.

3. Undervaluation of a Home. 

In 2013, it was found that roughly 60% of homes in the United States were undervalued by an average of 17%. Any remodels or improvements made to your home need to be updated on your Lake of the Ozarks homeowners insurance policy. If the additions add significant value to your home, you may be left with a gap in your coverage.

4. Home Replacement Cost. 

In the event of a total loss, your homeowners insurance policy will pay up to the dwelling limit stated on the policy. If that amount is less than the cost to rebuild it, you have to pay for that difference. It is important to make sure that your home is not just insured for the market value, but rather the value to actually rebuild it back to the way it was before the disaster occurred. 

5.  Residence Loophole. 

If you move out of your home while you continue to own it, your homeowners insurance may have coverage exclusions or limitations due to the vacancy. Most consumers are not aware that once they stop living there, their homeowners insurance coverage may have limitations with regards to the dwelling itself. Before you plan to move out, be sure to call the best insurance agent at the Lake of the Ozarks to switch to the right policy with the right coverage.

6. High-Value Possessions. 

Many homeowners insurance policies will cover your personal belongings up to 50% of your dwelling limit. Generally, there are limits for reimbursing jewelry, silverware and collectibles, typically $1,000-$2,500. Also, many policies will cover your items if they are stolen, but not if they are lost or damaged and only pay out actual cash value rather than replacement cost. If you have valuable items, it's important to schedule items for additional coverage that will allow you to replace them. 

7. Too Little Too Late. 

If you have someone dependent on you then you need life insurance. Even if you have a life insurance policy, it may not be enough to cover all the expenses when you're gone. For example, a life insurance policy through your employer is likely only 1 to 3 times your salary. While that's better than nothing, it may not be enough coverage. The American Council of Life Insurers recommends that your life insurance coverage is 7 to 10 times a person's annual salary. Consider purchasing additional life insurance at the Lake of the Ozarks to cover the gap.

8. Low Disability Insurance Coverage. 

In 2013, according to the American Council of Life Insurers, only 32% of workers were covered by disability income insurance. Even if you have a policy through your employer, it might not be as comprehensive as you think. Most group disability plans will pay 60% of your income up to $10,000 per month. Most of us probably couldn't live on just 60% of our current income, let alone pay for the additional medical expenses associated with the disability. Also if a portion of your income is from commissions or bonuses, that amount is not used to calculate that 60%, so it could be even less that you receive. Consider purchasing supplemental disability coverage from your Lake of the Ozarks insurance company to fill the gaps.

To avoid having to make up the difference that insurance doesn't pay in the event of an accident or disaster, talk to your insurance agent today! At Insure the Lake, we're here to make sure you're covered for any possible scenario. We will work with you to get the best plan for you and your family. Contact us today at 573-348-2794!

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral