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The Most Common Coverage Gaps


The Insurance Exclusions That May Surprise You

Published Thursday, June 15, 2017

The Most Common Coverage Gaps

(Clearing Up Some Insurance Myths)

Many people assume that when they buy a home or auto insurance policy that it covers everything—or at least every claim they need to file.  And, of course, if the claim is not covered, they become distraught over the value of insurance.  Don’t let yourself get into this situation.  Be educated about your policy!  The truth is everything is NOT covered; furthermore, you may not need EVERYTHING depending on your situation.  Our role as your agent is to advise you of the availability of different coverages and to help you determine which coverages are appropriate for you. 

Following are some optional coverages we are commonly questioned about.  Please review them, and if you don’t have one or more of them (or aren’t sure if you do), call us.  We’d be glad to explain the benefits and estimate a premium for you. 

Water Back-Up/Water Damage.   When water backs up from your sewer or sump pump, it can do enormous damage, especially if you have a furnished basement.  Without the Water Damage endorsement, there is NO coverage to clean up and repair damaged belongings.  Most of our companies offer Water Damage coverage.  If you have a basement and are without this coverage, you are at risk!  Without Water Damage coverage, NO payment would be made.

Earthquake.  Luckily, earthquakes are not common in our area.  However, this doesn’t mean an earthquake would never occur.  It is important you understand that earthquakes are not automatically covered.  Earthquake coverage can be purchased and added to your home policy.  Call us for a quote. 

Flood.  Floods, like earthquakes, are also NOT automatically covered.  Unlike earthquake, however, a separate policy must be purchased to obtain the coverage.  Flood coverage CANNOT be added to your existing home policy.

Flood insurance is written only by the federal government’s National Flood Insurance Plan.  We have the availability to offer flood insurance and can service the policy for you. 

Rental Reimbursement/Towing. These two coverages are available for autos which have physical damage coverage (comprehensive and collision).  Some of our companies automatically include rental and towing; however, some do not.  Don’t get in the situation of needing a rental car or a tow and realizing after the fact that you don’t have the coverage.  The charge is minimal and certainly makes the inconvenience of being in an accident less inconvenient. 

Tree Removal.  If you’ve ever had a tree struck by lightning or downed by wind, you know the damage it can do if it lands on a structure.  If you are lucky enough to have it fall out of harm’s way, there is still the cost to have it removed.  Depending on your policy, coverage varies.  Some policies only respond if the tree damages property; others respond in either scenario.  Call us to find out how your policy would respond. 

These are only a few of the optional coverages available to you.  Our desire is that you ask questions and understand your policy ahead of time.  There is nothing more distressing for you and for us than to find out you have no coverage AFTER a claim occurs.  We want to respond affirmatively to your question, “Is this covered?”  However, if we cannot, we don’t want you to be surprised. 

Please phone us ANY time you have a coverage question—hypothetical or real.  If a neighbor or relative has a claim and you’re wondering how your policy would respond, call and ask!  The few minutes you spend to dial the phone and chat with us could save you hundreds or thousands of dollars in an otherwise unpaid claim!


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