How To Avoid These 3 Common Gaps In Insurance Coverage

To find out what the most common gaps are, we sought the advice of the claims professionals at SafeCo Insurance. All three examples shared a similar feature: a misconception that can lead to inadequate coverage.

Gaps In Insurance Coverage

#1 Valuable Articles Coverage

  • Misconception: If my wedding ring and grandma’s heirloom earring are stolen, my homeowner’s policy has me covered.
  • Fact: When policyholders become the unfortunate victim of a theft, fire or natural disaster, their experience becomes even more painful when they discover that their homeowner’s policy has specific internal limits on jewelry, collectibles, art & other items.
  • Guidance: Talk to your independent insurance agent about jewelry, antiques or memorabilia that you own. If you buy a new collectable or get a gift – such as a new watch- be sure to check in with your agent to make sure your coverage is still adequate.

#2 Loss of Use Coverage

  • Misconception: If I’m involved in an accident and my car is in the shop, I’ll still be able to get to work because my auto policy includes rental car reimbursement.
  • Fact: When a covered loss requires a vehicle to be in the shop for repairs, many customers are unaware that their base policy does not help pay for the cost of a rental car and they find themselves in a bind with no way to get to work, or get the kids where they need to go.
  • Guidance: Consider a scenario where your insured vehicle has been in an accident and must be in the shop for 2 or more weeks. Could you share the other family car or borrow a car from a relative?

#3 Original Equipment Manufacturer Coverage

  • Misconception: If my Ford Mustang is in an accident, the damaged parts will be replaced with new, original equipment manufactured by Ford.
  • Fact: Customers with luxury vehicles or prized sports card can be disappointed to learn that their car is being using a new part not manufactured by the original manufacturer or a recycled part made by the original manufacturer.
  • Guidance: Have a discussion with your independent with your preferences. If it’s important to you that your car be repaired using original factory parts, consider original equipment manufacturer (OEM) coverage.

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