Many homeowners are at risk of unexpected out‑of‑pocket expenses because they have a gap in their insurance coverage, experts say.
The shortfall can arise when a policy does not cover certain perils or when limits on coverage are lower than the actual value of a property or its contents. In such cases, a claim for a covered loss may result in a significant portion of the cost being paid by the homeowner.
Because the gaps are often subtle, most policyholders are unaware that they are under‑insured. The lack of awareness means that when a disaster strikes, many families could face financial hardship that a full policy would otherwise prevent.
Insurance specialists advise that homeowners review their policies regularly, paying particular attention to exclusions, limits, and the value of their property and belongings. Checking for coverage gaps is a simple step that can protect against future financial risk.
The issue has been highlighted by CNBC, underscoring the importance of understanding the details of a homeowners insurance policy before a claim is made.
<small>Source: CNBC — read the original story there.</small>