There are no gaps in my coverage, right?
Insurance, is one of those set it and forget kind of things for me. I’ve got my home, my car set-up, and I even remember travel insurance at the very last minute as I pack my bags in frenzy. Thank goodness for my ever-patient (and responsive) broker!
Am I really covered for everything though? Life changes happen so quickly and no one ever thinks about insurance, and then there are the things you don’t even think to mention to your broker, because well, you don’t know what you don’t know. So I chatted with the team about some of the most commonly overlooked gaps in coverage and here is what they had to offer….
Home-based businesses
No matter the size, if you operate a business out of your home, you are likely in need of some additional coverage. Accidents or injuries suffered by employees or customers while at your home may not be covered, and depending on the nature of your business you may be vulnerable to a whole new set of risks your homeowners policy is not prepared to handle. A good example of this is a business that manufactures products in the home or on the property, not only could coverage be lacking, but also your policy may be void in the event of a claim if your insurer doesn’t have all the right information about the use of your property to begin with.
Water damage and flooding
With the haphazard weather in recent years, even those not typically in flood zones have found themselves knee deep in unexpected water. But what is actually covered in your policy? That’s a good question to pose to your broker. Be sure to ask about overland flooding and sewer back up, these coverages are NOT automatically included on all policies.
Insufficient liability coverage
If you happen to be the eager soccer parent or carpool king with a vehicle full of passengers, you need to get some clarity on the type of liability coverage you have. You may need to top yours up to get adequate coverage in the event of a collision or other incident, or ask your broker about umbrella coverage. It’s an inexpensive catchall meant to meet your liability needs where your other policies fall short.
Car rental insurance
When you rent a car in most North American destinations and beyond your current auto policy could cover you, but this too is not automatic. Be sure to ask your broker if you have the coverage and if it applies to your destination. If you are a regular traveller, the $20-50-ish addition to your annual premium is well worth the value, considering rental agencies will charge $15 a day on average.
These are just a few of the most regular occurrences in coverage gaps, but there are certainly others to consider; collections of art or high valued jewelry, properly insuring your home to value, and even falling short on life and disability coverage – this is especially important to review for the self employed.
The gaps exist because the average consumer doesn’t have enough information to know they are at risk. Talk to your broker, they can help you assess your needs on a regular basis and keep your coverage up-to-date. Don’t have a great broker yet? Give us a call or send us an email.
Want to know more? Review these sources and resources.
Insurance Bureau of Canada – Policy Checklist
InsuranceBusiness.ca
Have More Questions?
Let me know and I’ll do my best to address it here for you and all of our readers. Better yet, contact an InsureMy advisor; these guys know their stuff. Email Info@InsureMy.ca or give them a call locally at (403) 410-1896 or toll free at 1-844-410-1896.
Everyday Insurance With Allie
Working mom, lover of the great outdoors and self-professed know-it-all. Our resident blogger, Allie isn’t the insurance guru she claims to be – but she’s learning and we are happy to help guide her. All the while keeping you in the loop on the “insurancey” stuff you need to know. #AskAllie
