5 Home Insurance Gaps to Watch Out For in Chattanooga
1. High-value Personal Property
Many items we have in our homes are particularly valuable and may be subject to coverage limits under our unendorsed homeowner’s policies. Several such coverage limits include:
a. $200 on money, banknotes, bullion gold, silver, platinum and coins;
b. $1,500 on securities, deeds, letters of credit, personal records, passports and stamps;
c. $1,500 on watercraft;
d. $1,500 on trailers;
e. $1,500 for loss by theft of jewelry, watches, furs and stones;
f. $2,500 for loss by theft of firearms;
g. $2,500 for loss by theft of precious metalware; and
h. $2,500 on property used primarily for “business purposes.”
If you have items on the list above that you want additional coverage for, speak to your insurance advisor about increasing the limits under your Homeowner’s coverage or purchasing a stand-alone policy to cover these items.
2. Water back-up/Flooding
Flooding is excluded from coverage in Homeowner’s policies and must be covered via a stand-alone policy. Water back-up from sewers, drains and sump pumps are not covered under the unendorsed Homeowner’s policy. Many insurance companies will add these exposures back at the reasonable cost. Keep an eye on water systems in your home, as damage from gradual leaks (mold, mildew, wood rot, etc.) are generally excluded.
3. Additional Structures
Traditional Homeowner’s policies will cover “Other Structures” up to 10% of the coverage value of your home. This may not be enough to cover detached garages, pool houses or other outbuildings.
Additionally, structures where business is conducted are excluded from coverage and are best insured via Business Insurance Coverage. For example, structures rented or held out for rent, or used to store business property not owned by the insured. These exposures are best insured via Business Insurance Coverage.
4. Personal Injury
Personal injury includes false arrest or detention, malicious prosecution, wrongful eviction, slander, libel and invasion of privacy and is not a covered cause of loss under an unendorsed homeowner’s policy. In today’s social media world, it is easier than ever to find yourself involved in a libel or slander claim – it is particularly important to monitor and coach children on how to appropriately use these online services.
5. Business Property/Home Office
As mentioned above, items at your home owned by your employer or business are limited to $2,500 in Personal Property coverage. Work-from-home arrangements have taken off over the last several years and can pose potential liability exposures if you have any meaningful amount of personal property in your home that belongs to an employer or is owned by your business. Additional coverage can be added via endorsement to your homeowner’s policy.
If you’d like to discuss further, please do not hesitate to reach out to me at Bobby@pamwealth.com or, of course, your Relationship Manager.