Basic insurance policies protect against certain risks. But most auto and home insurance policies do not protect against all risks. There are things under your responsibility to protect that fall outside a basic policy. In these cases, it’s necessary for you to self-insure, or obtain additional coverage to protect against these risks.
Below are a few common things not typically covered that you should be aware of.
#1 In-Home Business
The standard homeowner’s insurance is set up to cover risks associated with using the home for personal use only. If you run a business out of your home or produce an income of any type on your property, you need to know that activities and property within the home associated with business/income will likely not be covered on a standard homeowner’s insurance policy. If your home catches fire or a thief steals items–any property associated with your home business may not be covered. For example, if you have a customer come to your home and they are injured while there–your homeowner’s insurance may not cover this liability.
#2 Vehicle Use For Business
As with homeowner’s insurance, typical auto insurance policies only cover things associated with using your vehicle for personal use. Uber, Lyft, food delivery, and real estate activities will most likely not be covered. This means that getting in a car accident while driving your vehicle for business purposes could be lethal to your personal finances.
#3 High Value Jewelry, Fine Art, Collectibles, & Guns
This is one that most people don’t know. It’s typically assumed that all personal property is covered as part of a standard homeowner’s insurance policy. This is rarely the case. Most of the time, expensive items like jewelry and collectibles have to be “scheduled,” or individually added to the policy. This includes fine art and guns.
So Now What?
The bottom line is that in most cases, you are responsible for handling the above items through:
- Self-insuring – the act of having enough money saved to cover any damages from a loss.
- Talking to your insurance agent to ensure your policies correctly cover these items.
Here’s the good news: getting these things covered is simple and the additional cost of coverage for these risks is minimal.
Do you use your home or car for business? Do you have high-value items in your home? It’s a good idea to discuss your coverage with a wise insurance advisor.
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