When taking a look at who is or is not covered under an auto policy, it’s common to hear “just add them as a driver so that they always have coverage.” But it might be worth your while to find out what it does when you add a driver as well as what it doesn’t do.
When a driver is added onto a car insurance policy, it is mainly done as an underwriting tool to give the insurance company the ability to get a Motor Vehicle Report for each listed driver. For example, the majority of insurance companies would prefer, on a personal auto policy, that anybody living with the named insured and any other regular driver(s) be listed as a driver. Similarly, on business auto policies, it is desired that all employees that drive insured vehicles be listed as drivers. This enables the insurance company to correctly underwrite any risks, surcharge for accidents/violations and, if needed, cancel the risk or non-renew it.
Your home insurance policy may offer you a wide range of covered events, but it is not a comprehensive policy and, like anything, has its own set of exclusions. In order to understand the specific events that are not considered insurable incidents by your insurer, be sure to take a look at your policy. The following is a general list.
1. Flood damage: Believe it or not, the damage caused by a flood is not covered in your home insurance policy. Even if the flood comes on the heels of a hurricane, if the damage is due to flood waters, your home insurance policy will not cover your claims. Instead, you must make sure that you have a flood insurance policy in place.
A homeowners insurance policy offers you and your family the financial reimbursement you will need to get your life back on track after an insurable event. But the financial benefits of having homeowners insurance are not experienced by policyholders unless they endure an insurable event with a financial impact that exceeds their deductible. Of course, that doesn’t mean that there are no intangible benefits to enjoy as you pay your premiums each month.
Peace of Mind
When you know that you have an insurance policy protecting you and your family, then you have peace of mind. That might not prevent an incident, but it can definitely help you sleep at night. Without homeowners insurance you are left with a subconscious nagging prompted by the insecurity that being uninsured brings with it. In this state, a lot of mental and emotional energy is used up wondering how you would rebuild your family’s life if your home were to become ruined in an insurable event.
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