10 Important Insurance Coverages That Are Often Overlooked

1.Automobile Gap Coverage – Gap insurance, also known as “guaranteed asset protection,” covers the difference between a car’s value at the time of theft or total loss and the remaining balance on its loan or lease. When a new car is purchased, its value depreciates quickly, and standard auto insurance only pays its current worth in the event of an accident. Gap insurance bridges this gap, ensuring that you won’t be left with outstanding debt on your loan or lease. While car dealerships often charge high prices for this coverage, you can add it to your existing Auto Insurance Policy through an Insurance Agent for approximately $25-$50 per year.

2. Automobile Forgiveness – Auto insurance companies charge higher rates to individuals with a history of accidents, as they are considered higher risk. However, some claims, like those resulting from liability in accidents or full coverage collision claims, can lead to rate increases. The amount of the claim plays a significant role in determining rate changes, typically around $750 to $1,000. Accident claims stay on your record for several years, and multiple claims within that period might result in being dropped by your insurance company. Accident forgiveness, an optional feature, allows you to avoid rate increases for a single accident, but it usually applies only once. If you have a second accident, you might face higher premiums regardless of the accident forgiveness option. Consult your insurance agent to see if your insurance company offers this feature.

3. Homeowners Water Backup Coverage – An optional add-on to homeowners insurance, water backup coverage helps pay for water damage caused by backed-up drains or sump pumps. It covers expenses like furniture replacement and water removal after an unexpected backup, distinct from Flood Insurance.

4. Homeowners Flood Insurance – Homeowners Insurance does not cover flood damage, necessitating a separate policy from the government’s National Flood Insurance Program. These policies usually offer up to $350,000 in coverage for the home and its contents. For higher amounts of coverage, supplemental policies from other insurance companies may be required. A separate flood policy is advisable to avoid long waits for FEMA assistance during major floods.

5. Umbrella Insurance – Umbrella policies provide additional liability coverage on top of existing Home, Auto, Motorcycle, RV, and Boat policies. It protects against negligence in accidents or injuries that occur at home or while operating a vehicle, as well as Libel and Slander claims related to defamation. Premiums for umbrella policies start at $250 per year.

6. Personal Articles Policy – This policy covers valuable items such as jewelry, collector’s items like sports memorabilia and antiques. These items are exempt from a deductible if lost or stolen, and having a separate policy avoids claims affecting the homeowner’s policy rates upon renewal.

7. Special Event Coverage – Designed for weddings, retirement parties, or any significant event with substantial deposits involved, this coverage provides liability insurance requested by venues from the event hosts to transfer liability responsibility.

8. Boat Insurance – Though not mandatory, boat insurance is recommended to safeguard the owner’s investment and cover liabilities arising from boat ownership and operation. Premiums typically range from $250-$500 per year for a 20-foot pontoon or speed boat.

9. Motorcycle Insurance – In many states, motorcycle insurance is legally required. It protects against personal injury or property damage liabilities caused by the insured, as well as covering medical bills, theft, and vandalism damage.

10. RV/Trailer Insurance – RV insurance requirements depend on the type of recreational vehicle. If it’s self-contained and doesn’t require another vehicle’s assistance to travel, insurance is usually mandatory. Liability insurance is required for any vehicle driven on the road, including motorhomes. Minimum coverage is needed to legally drive, while additional coverage is optional, except when mandated by a lender.

If you would like a complimentary coverage review, please contact me at 630-922-9909, cell: 630-854-3366 or via email emillington@millingtonis.com.

Erin Millington owner of Millington Insurance Solutions

Content provided by Women Belong member Erin M MILLINGTON