Coverage Gaps? Do you have them?
Mar 23 2020
We don’t know, what we don’t know… about insurance gaps.
Do you have insurance? If you own a car, you are required by law to have auto insurance. You may have homeowners or renter’s insurance depending on your living situation. You may have even taken the steps to get life insurance or disability insurance, or, your employer may provide those benefits.
No matter who you are or what your life choices have led to, you most likely have some sort of insurance. However, the real question is, do you have enough insurance coverage to give you real protection? Even people who check off all these insurance boxes may have gaps in their coverage which can cause unexpected financial stresses or worst in the event of a loss.
Coverage gaps are the result of not having adequate coverage or having the wrong type of coverage. The following are some examples of coverage gaps that typically occur:
Auto Insurance. Every state has mandates that require auto insurance. However, not all coverages are equal. Depending on your state, there are types of coverages that are mandatory and others that are optional. Typically, collision and comprehensive coverages will be optional. Collision coverage protects you against accidents such as collisions with other drivers, the accidents you “can control”. On the other hand, comprehensive coverage provides coverage for things such as fire, vandalism, and storms… the things you “cannot control.” If you don’t completely understand the policy that you have, the best way to make sure you are covered properly is to sit with your Agri-Services Agency agent to have a professional review it with you.
Homeowners Insurance. Most homeowners do not think to review their homeowners insurance policy once it has been purchased. According to Marshall&Swift/Boeckh, 60% of homes in the United States are undervalued by an average of 17%. If you have made any improvements or done any renovations to your home and you haven’t updated your homeowners coverage than you are most likely in that statistic. When those improvements or renovations have significantly increased the value of your home, then you have a coverage gap. Likewise, if you are a renter and you purchase any larger, more valuable items for your home, you may want to revisit your renter’s insurance options. You should review your homeowners or renter’s policy annually with your Agri-Services Agency agent and increase coverages where needed.
Life Insurance. Without your salary, could your spouse pay the mortgage? Would the college fund continue to grow? Would your parents be taken care of? Will your loved ones be able to maintain their lifestyle and be okay? If you have someone that is financially dependent on you, you probably need life insurance. If you do not have any life insurance, you have a major coverage gap in your insurance needs. The best way to figure out exactly how much coverage you need, consulting with a Agri-Services Agency agent will help you understand the different types of life insurance available to you, as well as determining the appropriate amount. Some people already have life insurance through their workplace, or a policy they purchased on their own. Employer-paid life insurance is great! However, that policy is likely not enough which creates a coverage gap, or, if you leave that company, you may lose the life insurance policy. You should discuss your options with your Agri-Services Agency agent and get additional coverage where it is needed.
Disability Income Insurance. What if you had an accident or an illness that didn’t allow you to work for a few weeks or months? Do you have enough money in your personal savings that would cover your expenses until you were able to return to work? What would you do if you were to become disabled and weren’t able to work at all? Would you be able to financially fund yourself? A survey conducted by OneAmerica and the Harris Poll in 2017 found that only 34% of workers surveyed had any type of disability income insurance. Even if you are part of that percentage and have a policy through your employer, it might not be as comprehensive as you think. Most group disability plans only pay a certain percentage and up to a set amount per month. You may have an issue living on a percentage of your income, especially if you are disabled and have added medical costs. The lack of any coverage or enough coverage can create a coverage gap. If you have no coverage you need to meet with your Agri-Services Agency agent to discuss your options. If you think you may not have enough, you may need to consider supplemental disability coverage. Your Agri-Services Agency agent can help you review your current coverages and determine what your needs are.
With Agri-Services Agency, you have a whole team of dedicated professionals taking care of all your insurance needs. We take the time to get to know you, learn about your unique needs, and identify the potential risks that you face. We can work with you to determine what your coverage gaps are and develop a plan to get them covered. We also provide 24/7 customer service which can be helpful should you need assistance after hours.
Give Agri-Services Agency a call today at 1-877-466-9089 to discuss your gaps and coverage options!