6 Commonly Overlooked Gaps in Home Insurance Coverage That Could Cost You

Protecting your home is critical for anyone and with homeowners insurance. With home insurance, you can help protect your home’s structure, your possessions inside, and even yourself with the right coverage. Your home protects you from the outside elements, provides a place of gathering and refuge, and is one of the biggest investments most homeowners make. But even as great as homeowners insurance is for keeping you and your family protected, there are still commonly overlooked gaps in home insurance coverage that leave homeowners exposed.

1. Flood Events Require Flood Insurance

According to GlobeNewswire, only 62% of homeowners are ready should their home flood. To make matters worse, of the 62%, only 12% of these homeowners have a flood insurance policy. Many homeowners believe that homeowners insurance will cover them in the event of a flood. Unfortunately, this is dangerous because they are greatly mistaken. For protection against floods, homeowners must purchase a flood insurance policy. 

Flooding affected 99% of all counties within the United States between 1996 and 2019. Of all flood claims, as many as 25% are from homeowners who live outside of flood zones. The point is simple: flood insurance is an important protection for all homeowners no matter how well they believe they are prepared or where they live. Having the right flood insurance coverage is the difference between restoring your home after a flood event and wondering where to go next during one of the darkest moments a homeowner can experience.

2. Windstorm and Hail Damage Isn’t Always Standard

Windstorms can bring a tremendous amount of damage to your home as can hail, and without the right kind of homeowners insurance or policies in place, you’ll be left picking up the bill yourself. There are many forms in which windstorms and hail can cause havoc to your home. The active hurricane seasons bringing in powerful storms may make the headlines, as do tornadoes, but even severe thunderstorms can send serious damage to everything in its path. At TGS Insurance, we want our clients prepared for everything that comes their way. This is why we include windstorm/hail coverage in our clients’ homeowners insurance policies automatically with a 2% deductible. Our commitment is to help our clients prepare for what may go wrong and rebuild if it ever comes true.

3. Collectibles and Other Valuables

Personal possessions are covered by your homeowners insurance policy, however, if you own things that were to exceed your policy limits, to restore the loss you would need to do so yourself or purchase an additional policy. This applies to some of the following that may push homeowners past their policy limits:

  • Collections (ex. Cards, stamps, etc.)
  • Instruments
  • Jewelry
  • Precious metals
  • Designer clothes
  • Firearms
  • Art
  • Electronics

In the event of a fire or if something is stolen or damaged through vandalism, without having adequate coverage or the right homeowners insurance policy, homeowners leave themselves exposed to paying to restore such losses for valuable items on their own. An HO-5 homeowners insurance policy provides homeowners with higher limits for their personal possessions and there are additional coverages specifically available for things like rare metals or jewelry. Be sure to speak with your agent about your homeowners insurance policy limits and what you need to protect when enrolling with an insurance company.

4. Sewer Issues Can Cost Homeowners

It may feel that on the surface if you were to experience an issue with your sewer line backing up or a sump dump failure that you would be covered by your homeowners insurance, but this too requires separate coverage. A sewer backup can easily cost homeowners several thousands of dollars. TGS Insurance offers unique water backup coverage options for our clients that only cost $25 a year on average and can offer between $5,000 and $25,000 worth of coverage.

5. Business Supplies May Not Be Covered

Working from home continues to become a bigger part of the American work culture. Accelerated by the COVID-19 virus, the way we work and where we work is much different than a decade or two ago. With working from home comes additional supplies and devices that we need to make things happen. Because these items are used for work instead of personal use, they may not be covered by your home insurance policy.

This can be an important component to remember because, on top of working from home for our main jobs, many Americans continue to embrace the Internet and take advantage of working on their own businesses and side hustle all from the comfort of their homes. A fire or a home invasion could see budding businesses stuck paying for additional expenses to restore losses related to their business. It is best to speak with your insurance agent to better understand what is and what is not covered by your home insurance policy in terms of your work-related items and which property coverages for business are available to you that can keep you protected against such perils.

6. Beware of Home Renovations

Many home renovations can increase the value of your home. Upgrades can also add to the cost of what it would take to restore your home should it become the victim of a peril such as a fire. These reasons are why it’s important to notify your home insurance provider of renovations that your home undertakes so that your policy can be adjusted and your home stays protected.

Other renovations, such as an inground pool, may not add to your home’s value, but the cost of restoring it is relevant, and will also affect the risks associated with insuring your home. This means your rate will likely go up, however, failing to tell your home insurance provider could see your policy voided and/or your home dropped from the coverage you need. Be sure to always disclose home renovations to your homeowners insurance provider to avoid gaps and lapses in coverage.

Mind the Gaps With TGS Insurance

Knowing about the gaps you may face is the first step in taking the necessary actions to protect yourself and your home. There are a lot of perils our homes contend with and having the right coverages in place can help them be prepared for more of what may otherwise cause costly damage. TGS Insurance understands the various gaps homeowners may face in their coverage and can provide ways to help you avoid them. 
We deliver customizable home insurance coverage built to fill the needs you have without breaking the bank. By comparing your coverage needs among our bank of 35+ top-rated insurance providers, we can find the best coverage options for you all while saving you money each year. Our average client saves $870 a year on their homeowners insurance coverage and may save even more when bundling auto, motorcycle, or umbrella policies together with their home insurance coverage. Contact us and see how much you’ll save while protecting your home today!

About Katie Rosario

Katie has been in the marketing industry for over 10 years and has a strong passion for writing great content. She has been writing for TGS Insurance for three years and strives to make every piece of content she works on informative and easy to read. In her spare time, she enjoys baking and spending time with her family.