Many people assume that if they have an insurance policy, they’re covered for just about anything that could go wrong. Unfortunately, that’s not always the case. Some of the most common — and most expensive — insurance surprises come from
coverage gaps people didn’t know existed.
Here are a few areas where we often see confusion.
Flood Damage vs. Water Damage
This is one of the biggest misunderstandings in insurance.
- Water damage from a burst pipe or appliance may be covered
- Flood damage from rising or surface water is not covered under a standard homeowners policy
Flood coverage requires a separate policy, and many people don’t realize they’re exposed until it’s too late.
Wear and Tear Isn’t Covered
Insurance is designed for
sudden and accidental losses, not ongoing maintenance.
Typically not covered:
- Old or worn-out roofs
- Gradual plumbing leaks
- Failing appliances
- Deterioration due to age
Regular upkeep protects your home — insurance steps in when the unexpected happens.
Business Use of Personal Vehicles
Using your personal vehicle for work can create a serious gap.
Common examples:
- Delivering products
- Hauling tools or equipment
- Using a vehicle for farm or side business purposes
Personal auto policies often
exclude business use, which can cause major issues at claim time.
High-Value Items May Have Limits
Most policies have built-in caps for certain valuables, such as:
- Jewelry
- Firearms
- Collectibles
- Electronics
If these items aren’t specifically scheduled, you may receive far less than expected after a loss.
Outbuildings, Equipment, and Acreages
For acreage and farm owners, coverage gaps are especially common.
We often see:
- Sheds or shops not properly insured
- Equipment covered under the wrong policy
- Personal and farm liability overlapping — or missing entirely
These setups need to be customized, not assumed.
Why These Gaps Matter
Insurance surprises usually show up
at claim time, when options are limited and emotions are high. The goal isn’t to sell more insurance — it’s to make sure you’re protected in the areas that matter most to you.
A quick conversation now can prevent a very expensive lesson later.
Want to Know Where You Might Be Exposed?
If you’re not sure what your current policy does or doesn’t cover, we’re happy to review it with you and explain things in plain language.
No pressure. No obligation. Just clarity.
📞
Contact us today to schedule a quick coverage check.
