Common Homeowners Insurance gaps:

1. 1. Underinsurance and coverage limits. Underestimating the cost of a home rebuild can result in being underinsured. This means your coverage limits are less than the claim amount. If this is the case, the policy will pay less than the expenses, and the homeowner will pay the difference. 
      TIP: Consider inflation when determining replacement cost and review policy terms regularly.
      
      
   2. High disaster deductibles. If you have a disaster policy on a $500,000 home with a 5% deductible, the owner will pay $25,000 before the policy pays. 
      TIP: Understand what your deductible is on each policy and plan for it.
      
      
   3. Exclusions for floods, earthquakes, etc. 
      TIP: If you are at risk, think about purchasing flood and earthquake policies, which are separate additional insurance policies.
      
      
   4. Exclusions for water damage caused by sewer backups or plumbing issues. Water damage from storms and burst pipes is usually covered, but most policies exclude sewer backups. Sewer backups occur because of aging sewers, pipelines, tree roots, etc. 
      TIP: Consider adding a sewer backup endorsement to your policy.
      
      
   5. General Liability. Homeowners’ policies typically provide some coverage if someone is injured on your property, but the limit may not be enough for certain accidents or lawsuits. 
      TIP: Review your policy and increase limits if needed. Also, consider adding an Umbrella policy.

To identify potential gaps like these, we recommend reviewing your Homeowners Insurance Policy, looking for words like limits of coverage, deductibles, eligibility and exclusions. If you are unsure whether you are fully covered, consult with a Licensed Insurance Agent at The Whitlock Group to confirm you have the proper Homeowners Insurance policies in place.