When disaster strikes, you want to be able to count on your insurance company. You want them to have your back and the claim process to go smoothly. But what happens when disaster strikes and your insurance provider says your claim isn’t covered?
The answer is simple: they expect you to pay out of pocket. And if you don’t have the money on hand, that can be a tricky situation—especially if it’s an unexpected expense.
So how can you avoid being in this situation? Make sure that all of your claims are covered by an adequate amount of insurance coverage in the first place!
Common Coverage Exclusions
Insurance is a gamble. You’re betting that you won’t need your policy, but if you do, it’ll cover the cost of repairs or replacement. But what happens when your insurance doesn’t cover everything?
Every insurance policy has exclusions—things they won’t pay for. Some of these are obvious, like life insurance providers refusing claims when the insured died by overdose or suicide. Others are more unexpected: health insurance often excludes disasters, pre-existing conditions, maternity-related expenses, mental illness, or HIV/AIDS. These are expensive, stressful, and sometimes debilitating conditions, and you deserve to be protected, but your policy likely excludes them. Most auto-insurance policies won’t include collision protection, either, so if you end up in an accident, those fees are yours and yours alone to cover.
Why You Should Consider Additional Coverage
Buying additional coverage is a great way to protect yourself from the unexpected.
When you buy your home insurance, you’re insuring your home, your possessions, and the structure of your house. That’s it. You’ll need to purchase additional coverage if you want to be covered for other things—like water damage or theft.
But how do you know what coverage best meets your needs?
It all comes down to knowing the risks associated with your particular life circumstances. For example, suppose you live in a region prone to flood damage. In that case, it makes sense to purchase flood protection as an additional form of insurance. If you have a pre-existing health condition or family history of certain illnesses, then those conditions may be considered uninsurable by some companies, so additional coverage would also be advisable (especially if you suffer from a mental health condition). If you’re pregnant or planning on becoming pregnant soon, additional pregnancy coverage could help protect you against medical bills related to that time in your life.
Hometown Financial Group can help you find the perfect policies for your present and future. We’ll help you determine how much insurance coverage you need based on your needs and goals. Please don’t hesitate to call us if you want to learn more about what we can do for you!