The modern homeowners policy is very comprehensive and covers *most* of the things the typical homeowner needs, however, few of us us are truly “typical”  and there are some common coverage gaps that we always talk to our clients about. Here’s just a few homeowners insurance coverage gaps. Home Based Businesses. Did you know that over 12% of all U.S. households operate a full or part-time home based business? Between 34 and 36 million households have an active home office. Homeowners policies generally don’t offer you much coverage for your business and figuring out coverage gaps can be confusing.  If you operate a business out of your home you should be aware:

• The property coverage for your home won’t be affected by running a business out of your home, but this is strictly limited to property coverage. Many other coverages included in a homeowners policy exclude losses resulting from your business.
• Coverage for “other structures” is included in your homeowners policy. This is important because a homeowners policy won’t offer coverage for a detached structure if you run a business or have business property inside the additional building. You should have a separate policy that covers the building, your business personal property, and premises liability your business. Basically, if have a home-based business you need proper business insurance to cover your business liability, workers compensation, commercial auto, etc.
• Storing gasoline or liquid fuel in your garage whether it be attached or detached that is used for your business may void coverage for that structure under your homeowners policy especially if it is the cause of the damage.

Named Insureds.  Who is covered under a homeowners policy? The homeowners policy will cover the “named insureds”, resident relatives, and resident relative minors for liability and property losses. The “named insureds” must be occupying the home on a primary basis. If the named insured is residing at another location and using it as their primary residence and they let someone else live in their home, there may not be any coverage offered if there is a loss. In certain circumstances you can add a family member as an “additional named insured” onto the policy to make sure there is coverage, provided there is a loss while residing in the home. If you are going to have someone who is not a family member live in the home, it is important to have the policy re-written as a dwelling fire policy and have the renter get a renters policy to cover their liability and property exposure. Umbrella Policies. Umbrella policies are an inexpensive way to ensure you have enough liability coverage in any situation.  In many cases you can add umbrella coverage onto your homeowners policy.  If your homeowner’s insurer doesn’t offer umbrella coverage there are many companies that will write a separate policy to cover your home and auto policies. Umbrella policies require certain underlying limits on primary policies.  If you carry limits that are less than the requirement, you will be responsible for paying the difference if there is a claim. For example, if the requirement on a homeowners policy is $500,000 in liability and you carry $100,000 and there is a claim for $2,000,000 against your liability coverage you will be responsible for paying $400,000 out of pocket for that claim. As always, LG Insurance Agency is your local Jersey Shore Agency working to protect you and your investments. Have questions related to your homeowners insurance coverage? Call us, we can provide expert advise and a free quote to make sure your home and property are covered!

All content provided in this blog is for informational purposes only. Topics discussed on this blog relate to insurance products and issues in a general application, and are not an offer of insurance, a guarantee of coverage, or applicable to specific and individual circumstances. Contact LG Insurance Agency for questions and information specific to your insurance needs.

About LG Insurance

Founded in 2009 by Aaron Levine, LG Insurance is one of the Jersey Shore's fastest growing insurance agencies. Located in Long Branch Jersey, LG Insurance proudly serves many other local towns throughout Monmouth County including Asbury Park, Eatontown, Little Silver, Middletown, Ocean Township, Red Bank, Rumson, Shrewsbury and all of NJ. We also insure homes and busiensses on Long Island and in the Greater New York City area.

Specializing in personal and business properties in coastal areas, LG Insurance offers a full product line of personal and commercial insurance packages and products as well as a full line of life insurance and supplemental insurance coverages.