5 Important Insurance Policies Most People Don’t Think About
A colleague of mine in Tennessee recently wrote about something every business owner needs to consider: How much coverage is enough, and what’s missing from most business policies?
That got me thinking about my own clients. Most of them don’t own their own companies, but they do have something even more precious to protect – their homes and families.
You have insurance for your car and your home, but what else do you need? What might be missing from your coverage?
- Flood and Earthquake Protection
I know so many people who insure their jewelry and other expensive items in their homes, but they’re not covered for two events that can cause catastrophic damage to their homes. Floods are the most common and costly natural disasters in the country, and most homeowner’s policies don’t cover them. Through the National Flood Insurance Program, anyone who lives in a participating community can buy flood protection from an insurance advisor. If you’re in an A or V flood zone, chances are you had to have insurance before you could get your mortgage. If not, your risks are less, but that doesn’t mean it’s impossible. Floods can happen almost anywhere (even the desert!), and you should be protected against the losses they can cause.
Earthquake coverage can be added to most existing policies. Not everyone is at risk of suffering from earthquake damage, but they can happen in unexpected places. These policies typically have high deductibles, but that’s because the damage caused by earthquakes can be ruinous.
- Scheduled Homeowner’s Policy
When disaster strikes, your homeowner’s policy should cover your house and the things inside of it. But if you have unusually valuable belongings, you need to schedule them on the policy. Let’s say, for example, that you have an heirloom diamond bracelet worth $10,000. Your insurance advisor can document its existence and even list its appraised value on your policy so that when it comes time to file a claim, there’s no question that this incredibly valuable object was inside your home and was lost. Taking a few extra steps now can save a lot of trouble later on and also ensure that your most valuable possessions are covered in case of emergency. - Renter’s Insurance
A lot of people don’t think about it this way, but whether you own your home or rent it, a loss is still a loss. If your house or apartment catches fire, or if someone is hurt at your home, you will need good insurance coverage. That’s why renter’s insurance is a good idea. It can be very inexpensive, and when bundled together with an auto policy, discounts may be available at some companies. - Watercraft Insurance
I love the water, and plenty of people spend the spring, summer and fall on the lake or the ocean. Watercraft insurance isn’t just for big yachts and ski boats. If you have a fishing boat or even a jet ski, you need to be covered. The need for watercraft insurance doesn’t stop at the boat itself. It’s the same as a car: If you accidentally hurt someone else, liability coverage can kick in to help pay the costs. - Umbrella Coverage
If you have good insurance for your home, your car and everything else, it might feel like you’ve done everything you can. But you can always do more. Think of umbrella coverage as “insurance for your insurance.” If you have a claim – particularly a liability claim – that goes above and beyond your current policy limits, umbrella insurance can give you extra coverage up to $10 million. Think about being sued by a driver from an accident that’s your fault or from someone tripping and falling on your front porch. Wouldn’t it be nice to have a few million extra dollars available just in case?
Insurance is designed to give you peace of mind. Everyone should periodically look at their policies and decide if it’s really enough. If you don’t have any of the coverage listed here, it’s worth considering a fresh conversation with your advisor.
Learn more from Adena in this webinar, Consumer Insurance Basics 101.
Adena Lightner is an insurance sales executive at HPB Insurance Group, a subsidiary of Pinnacle Financial Partners. She can be reached at Adena.Lightner@HPBInsurance.com or by phone at (336) 881-3994.
