Even the most careful people sometimes have insurance coverage gaps that could put themselves, their families and their belongings in danger. Coverage gaps in your car, home , and life insurance can leave you vulnerable. Here are six of the most common coverage gaps and why you might want to consider closing them. For further information visit http://www.kimberleyvassal.com and contact a Kimberley Vassal Insurance agent for a free Pennsylvania insurance quote today, 800.511.9377.
- Not having Transportation Expenses coverage: Does your policy cover a rental car or other form of transportation if your car ends up in the shop after an accident? Transportation Expenses coverage can apply to two types of claims: a comprehensive claim (resulting from something other than collision, such as fire, theft or vandalism) and a collision claim (resulting from physical damage to your vehicle caused by rolling over or hitting another vehicle or object). Transportation Expenses coverage for collision claims can save you big bucks down the line
- No personal catastrophe liability coverage (a.k.a. an umbrella policy): Whether you’re at fault for an accident or not, you could still get hit with a personal injury or liability lawsuit. That’s bad news since lawyers’ fees, hospital bills, pain and suffering payments, and more could potentially exhaust your auto and homeowners policies (and possibly even your net worth). An umbrella policy adds an extra $1 to $5 million to your liability limits with premiums that start at $150 per year. That should give you enough coverage and peace of mind.
- No flood insurance: Insurance companies can’t cover floods at reasonable rates since they tend to be so devastating. But the federal government offers it through the National Flood Insurance Program(NFIP). It’s definitely worth considering since people who live outside of high-risk flood areas file more than 20 percent of NFIP claims. What’s more, just one inch of water can cause major damage to your home.
- No life insurance beyond your group coverage: A group life insurance benefit typically offers about two times your annual salary, which is almost never enough. “You may need more like six to eight times your salary just to break even,” says Greg Wieser, director of Life Marketing. Another downside to group life insurance is that you lose it when you take a new job. In tough economic times, employers may also reduce or eliminate coverage.