Beware of Gaps In Your Insurance Policy

6/19/2018 (Permalink)

There could be gaps hidden inside your homeowner's insurance policy.

A Homeowners Insurance policy gives you protection for the actual structure of the home, valuables inside, and your family. However, are you aware that there could be gaps in your policy leaving you paying out of pocket for disasters such as a sump-pump back up or failure, or even flood damage?

It’s true, these types of coverage are not included in your basic homeowner’s policy and require a separate addition in order to provide proper coverage. So what should you do? First, dust off a copy of your policy (or ask your local agent to send you a new one) and check to see if you have an endorsement for Sewers and Drains. This endorsement will give you coverage (generally up to $10,000) if the sump-pump backs up or fails, and floods the basement.

 Worried about an actual flood destroying the basement and part of the house? Not a problem, flood insurance is not part of a homeowner’s policy, but may be purchases separately through FEMA. Actual flood insurance can be expensive, so generally people who live in a flood zone purchase flood insurance.

However, if you find that you do not have an endorsement for Sewers and Drains or Flood insurance don’t stress. Simply talk with your local insurance agent and they will be able to help add that on to your existing policy. It takes just a few minutes to make sure your properly covered, and will save you thousands should you ever experience water damage from a sump-pump failure or back-up.