Are You Covered by Your Renters or Home Owners Insurance Policy? Double Check

A study by the National Association of Insurance Commissioners revealed that many homeowners think the standard insurance policy covers more than it does. Among their mistakes:

• 33% of homeowners believe that flood damage is covered.
• 68% think vehicles such as cars, boats and motorcycles stolen from or damaged on their property are covered.
• 51% think damages from a break in the water line on their property supplying water to their home are covered.
• 37% think damages due to a break in the sewer line on their property that connects to their municipal sewer system are covered.
• 35% think damages from earthquakes are covered.
• 34% think damages from mold are covered.
• 31% think damages from termites or other infestation are covered.
• 22% think pets stolen from or injured on their property are covered.

You might not be as covered as you think you are. Check with your insurer to make sure that you have the coverage you need and want. You do not want to be caught with an inadequate policy when you need it the most.

Joseph “J.J.” Montanaro is a certified financial planner with USAA Financial Planning Services, one of the USAA family of companies. Montanaro is a West Point graduate and served in the U.S. Army for six years on active duty. He is currently a Lieutenant Colonel in the U.S. Army Reserve.