Featured News 2012 Gaps in Insurance that can Create Serious Financial Setback

Gaps in Insurance that can Create Serious Financial Setback

When you rely on insurance to cover your emergencies, you certainly want to know what expenses you may need to pay for out of pocket. Unfortunately, most insurance plans have gaps, and the money you need most may be impossible to obtain. Sometimes the priciest aspect of an accident is the one that you don’t have insurance to cover. It’s important to be aware of these various gaps in insurance so that you can be sure to save for a financial emergency that you may need to fund in part on your own.

First of all, there are gaps in auto insurance policies. Even with a qualified professional there to help, you may not catch all of the gaps in your insurance police. The policies are often long and wordy, and it may seem irritating to have to read through the black and white print. Yet if you don’t, you may miss a key component that could hurt you financially later on. That’s why it is essential that you read through your police closely to make sure that there aren’t any gaps you didn’t know about.

When it comes time to file a claim, you may be too late to make changes to your policy and that may mean that you need to pay the price of your repairs. Look at the people who are named as drivers on your auto insurance coverage. The spouses and family members that you are associated with are probably affiliated with your policy, but there might be some sort of catch to watch out for. Sometimes, if your son or daughter is over 18 or doesn’t live under your roof anymore, then that person could be exempt from coverage on your plan.

Also, stolen electronic devices and damaged batteries, tires, or shocks are probably not included in your plan. They are a part of additional coverage packages, and you will have to determine now whether or not you would like to cover these things by paying extra money. Also, if you are renting or leasing your car, it’s important to make sure your insurance policy will cover the rental fees while the car is being repair. You also want to make sure that they will pay the outstanding balance on your lease if your vehicle is stolen or totaled. Always keep your insurance information up to date to ensure that you have the best coverage from your auto insurance company.

When it comes to homeowners insurance, there can be a gap here too. There are often a lot of things that will be overlooked in your homeowner’s policy. These include a lot of natural disasters. Floods, hurricanes, earthquakes, and tornadoes may not be covered in your insurance, and may put you in the poor house if one of these natural disasters ravages your home. Even if your insurance policy says that all perils are included, you should check the fine print at the bottom that determines what sort of perils these are. Sometimes perils only refers to things like a house fire or a tree that toppled onto the home.

Sometimes homeowner’s insurance will only cover part of your damages, so make sure to look for caps in your policy. The insurance company may only be responsible for damages up to a certain monetary value, and this can prove to be a problem for you. Also, there are times that there may be gaps in your life insurance policy. Read the policy carefully, and make sure to review it whenever you change jobs because you may be shown a different police at a different location. You may want to make sure that there isn’t any decreased coverage, expiration dates, and policy changes that could affect your payments. If you failed to not a policy gap and are now in debt because of a medical, home-related, or automobile expense, then consider bankruptcy to discharge your expenses. Talk to a bankruptcy attorney in your area today for more information.

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