Save Money In­sur­ance blind spots: 5 gaps that could cost you

The Denver Post - - BUSINESS -

You might think you have air­tight in­sur­ance pro­tec­tion against storms, car ac­ci­dents and other mishaps. But you’d hate to dis­cover hid­den cracks in your cov­er­age once it’s too late.

Here are five in­sur­ance prob­lems you might not be as pre­pared for as you think.

1. Flood­ing has oc­curred in ev­ery state in the coun­try over the past five years, ac­cord­ing to the Fed­eral Emer­gency Man­age­ment Agency. Yet only 12 per­cent of home­own­ers na­tion­wide carry flood cov­er­age, an In­sur­ance In­for­ma­tion In­sti­tute poll found. Home­own­ers in­sur­ance doesn’t cover flood­ing; you’ll need a sep­a­rate pol­icy.

2. Gap in­sur­ance helps you avoid ow­ing money on a car loan or lease even if your ve­hi­cle has been to­taled or stolen.

3. You may not re­al­ize that you’re re­spon­si­ble for the sewer line that runs from the main pipe­line in the street to your house. Yet stan­dard home in­sur­ance typ­i­cally doesn’t cover back­ups in this part of the line.

4. So­cial Se­cu­rity dis­abil­ity in­sur­ance is avail­able only to peo­ple with long-term dis­abil­i­ties last­ing at least one year. Some em­ploy­ers of­fer short-term dis­abil­ity in­sur­ance.

5. Most home­own­ers, even those who live in high-risk ar­eas, go with­out earth­quake in­sur­ance. Alex Glenn, NerdWallet

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