Insurance plays a crucial role in your life’s financial security and stability. The various policies and coverages that make up your insurance portfolio can potentially ensure you’re able to endure accidents, natural disasters and unexpected circumstances that might otherwise incur devastating financial losses. These risks may be particularly prevalent for those who fail to identify and address common coverage gaps.

This article can help you understand how and why specific gaps in your insurance could have significant financial ramifications for you and your family. Rinehart, Walters & Danner is focused on assisting you in not only identifying and understanding these possible pitfalls but also filling them and ensuring that your personal lines insurance portfolio offers fortified financial protection.

Common Personal Insurance Gaps

Your personal lines insurance portfolio may consist of several types of policies, each covering risks and exposures that might otherwise lead to significant financial losses. Despite how you may have assembled an appropriate collection of policies, each one might still be prone to having coverage gaps that could leave you vulnerable to unexpected situations. The aftermath of an accident or other losses is the worst time to realize you’re underinsured, so it’s essential to identify and address gaps before coverage is needed.

Consider the following common personal insurance coverage gaps:

• Home insurance—Also known as homeowners insurance, this type of policy can be rife with coverage gaps if you’re not careful and do not work with a qualified professional. Be particularly mindful of the following possible gaps:
  • Natural disaster exclusions—Certain natural disasters are often explicitly excluded from standard home insurance policies. For example, flood insurance must typically be purchased separately. Homeowners in certain parts of the country may also need coverage for earthquakes and windstorms.
  • Coming up short of the 80% rule—Insurance carriers typically enforce the 80% rule, which states that homeowners must retain enough coverage to pay for at least 80% of the estimated cost of a complete rebuild of their home. Failing to do this could lead to lesser payouts following covered losses.
  • Neglecting scheduled property coverage—Home insurance typically includes some coverage for personal possessions, but limits are often insufficient for those with significant valuables, such as fine art and jewelry. Additional coverage options, such as scheduled property coverage, may be necessary to ensure policyholders can recoup losses involving treasured items.
• Auto insurance—These policies may also be referred to as car insurance and are often legally required. Still, while one of the most commonly purchased types of insurance, auto coverage is easily misunderstood, necessitating awareness of the following possible errors:
  • Fulfilling only minimum requirements—While most states require motorists to carry certain levels of coverage, such as third-party liability coverage, simply complying with such mandates may not be enough. For example, many states do not require collision coverage, but if you crash your car, this part of a policy could be critical in ensuring you can repair or replace your vehicle.
  • Lacking gap coverage—Aptly named, lacking this component of an auto insurance policy could represent a significant hole in your coverage. Gap coverage can be critical in offsetting losses if you’ve financed your vehicle. If your car is totaled or stolen and you still owe more on your loan than the vehicle’s current value, this coverage can make up the difference and limit out-of-pocket losses.
• Life insurance—The right life insurance policy can provide financial stability and peace of mind for you and your loved ones. However, insufficient or outdated coverage could have dire ramifications, exacerbating the already difficult circumstances of a grieving family. Avoid this hardship by considering the following potential shortcomings in your coverage:
  • Relying on group coverage—Life insurance offered by an employer can be a valuable employee benefit; however, one should not depend on this as your only form of coverage. Group life insurance plans are typically tied to employment status, meaning that being let go or retiring would result in no remaining coverage.
  • Insufficient limits—As a person’s circumstances change, they may need to adjust their life insurance policies. For example, having a child or gaining a dependent typically increases expected expenses. Without making adjustments to life insurance, payouts could be insufficient to provide for a deceased’s family.
• Personal umbrella insurance—This type of insurance may not be as well known as others, but for many people, it can be just as important. An umbrella insurance policy casts an additional layer of financial protection over various liabilities that might exceed the coverage limits in other policies. Consider how personal umbrella insurance might help fill the following coverage gaps:
  • Inadequate auto insurance—Even if you’ve fulfilled your auto insurance policy’s minimum liability coverage requirements, severe accidents could have greater costs. If several people are severely injured, many vehicles are damaged or losses otherwise amount to a sum greater than your auto coverage can handle, personal umbrella insurance can offer additional aid and limit out-of-pocket losses.
  • Insufficient home insurance—Certain accidents and other incidents at your home could be exceptionally costly. For instance, if your home has attractive nuisances, such as a swimming pool, or you regularly host large gatherings, accidents affecting multiple guests or inflicting significant injuries could quickly exhaust the liability coverage limits in your home insurance policy. Without umbrella coverage, you’d be saddled with paying the remainder out of pocket.

How to Avoid Coverage Gaps

Now that you have a better understanding of common coverage gaps and the potential consequences of being underinsured, you can take steps to shore up your insurance portfolio. Consider the following steps:

• Appraise your belongings. One of the most effective ways to ensure you’re adequately covered is by being current on the value of what you’re insuring. Save receipts and document the condition of your possessions, and consider enlisting the assistance of professionals to appraise certain items, such as fine art and jewelry.
• Assess liability risks. Whether considering home, renters, auto or umbrella coverage, certain policyholders may need to manage greater liability risk levels. For example, if you have children or pets, you may want to retain more coverage in your home insurance policy. Similarly, additional financial security may be advisable if you have a teen driver listed on your policy.
• Consider recent life events. When your circumstances change, you should revisit your insurance policies. Getting married, having a child, buying a home or car, or moving should all trigger this process. Neglecting to account for life events in your insurance portfolio could lead to you being underinsured and your policies’ limits being incapable of covering losses.
• Understand endorsements and options. Familiarize yourself with all of the features and enhancements that might be available. While a standard home insurance policy may be sufficient most of the time, specific exclusions, such as for floods and hurricanes, could mean the difference between weathering a financial storm alone or being buoyed by financial aid.
• Enlist assistance. The knowledge and experience of a qualified insurance professional can be invaluable as you seek to purchase or reassess the components of your personal lines coverage.

Get the Right Coverage

In the wake of an accident, damage to your home or other incident involving financial losses, the last thing you want to hear is that your insurance isn’t capable of what you expected. Coverage gaps can quickly lead to unexpected expenses, potentially incurring far-reaching fiscal consequences that might upend your entire life.

At Rinehart, Walters & Danner, we’re committed to making sure that you and your family are adequately insured. Contact us today to learn more about personal lines coverage options and to ensure you’ve identified and remedied any coverage gaps.

Sharing your home with dogs can be a delightful and rewarding experience, often providing you and your family with company and comfort while encouraging you to enjoy the outdoors. However, while these furry friends can be beloved additions to your family and household, they may also come with potential risks. After all, regardless of how well trained or docile they may be, these animals may still exhibit unpredictable behavior that could even become violent.

Dog owners should take time to understand how their pet biting someone, such as a guest, neighbor or passerby, could potentially incur significant financial consequences. Much like how a child injuring someone or a teenage driver causing an accident might lead to costly losses that affect everyone on the policy, you may be considered at fault for incidents involving your dog. Fortunately, understanding and optimizing your insurance coverage may help you enjoy financial security and peace of mind following these situations.

Why Should My Insurance Account for Dog Bites?

Some dog owners may make the mistake of thinking their adorable pets cannot inflict significant harm; however, this misconception could prove costly. According to the Insurance Information Institute (Triple-I), nearly 4.5 million Americans (many of whom are children) are bitten by dogs annually; the number of claims against homeowners insurance for dog-related injuries and the average cost per claim has risen in recent years. Furthermore, according to Triple-I and State Farm, liability claims arising from bites and other dog-related injuries resulted in nearly $1.2 billion in costs for homeowners insurance carriers in 2023 alone. Even a small and usually well-behaved dog can inflict significant harm on a person, and resulting medical bills and other financial losses could lead to catastrophic costs.

Understanding the Law

In 29 states, you are legally responsible for injuries inflicted by your dogs, although exceptions may apply. Seventeen other states and the District of Columbia do not automatically consider dog owners to be liable for the actions of their pets, but attacks can be considered misdemeanors or even felonies in some cases, according to Triple-I. In some cases, insurance companies may adjust rates or deny coverage altogether for homeowners who own certain breeds, although they may be prohibited from doing so in some states.

Generally, three types of laws may apply if your dog injures someone:

• Dog-bite statutes may automatically consider you liable for unprovoked bodily injuries or property damage caused by your pet.
• A one-bite rule may hold you responsible for injuries caused by your dog if the victim can prove that you were aware of the dangers your pet presented.
• Negligence laws may consider you at fault if an incident occurred due to your carelessness, negligence or failure to control your pet.

Dog attacks can lead to significant fines and legal ramifications for you and your family. For example, there have been cases where individuals were convicted of charges, including murder and involuntary manslaughter, after their dogs attacked someone. Dog owners should research and understand their states’ laws regarding dog-bite liability and then take measures to reduce the risk of bites.

Insurance Solutions for Dog Bites

Given the financial and legal ramifications that could arise from an incident where your dog bites someone, it’s critical for you to have adequate insurance coverage. Fortunately, standard homeowners insurance policies typically include personal liability coverage, which can extend to your spouse, children and pets. If your dog bites someone or otherwise causes injuries, such as if they knock someone down inadvertently while playing, your insurance may help cover the affected party’s medical bills and financial losses. Similarly, your personal liability coverage may assist with repair or replacement costs should your dog damage someone’s property, such as digging up a neighbor’s garden.

Still, you should be aware of any restrictions or exclusions in your homeowners insurance. While many policies may include dogs under their personal liability coverage, some insurance companies may exempt certain breeds, such as rottweilers and pit bulls. In some cases, insurers may evaluate your dog before deciding on coverage. You should also be aware that personal liability coverage does not extend to incidents where you or other members of your household are injured. For financial protection after your dog bites you or your children, you will require alternate coverage.

Considering the expensive consequences of dog bites, you may wish to retain additional coverage beyond the capabilities of your homeowners insurance. In these situations, personal umbrella insurance emerges as a valuable investment. These policies establish a secondary layer of liability coverage, meaning that if your homeowners insurance coverage limits are exhausted, you can receive additional aid.

Tips for Preventing Dog Bites

While having suitable insurance can help limit the financial consequences of your dog biting someone, keeping an incident from occurring in the first place is ideal. Consider the following strategies to minimize the chance of your dog harming someone:

1. Invest in training classes for your dog and compound these teachings with your own efforts at home, particularly in regard to stopping aggressive behavior.
2. Have your dog spayed or neutered to reduce unpredictability, adventurousness and aggression.
3. Introduce your dog to a variety of people and environments to help your pet be more comfortable in unfamiliar situations.
4. Avoid environments where you cannot predict how your dog will react. This may include confining them to a room or kennel while having company over.
5. Be aware of your dog’s breed and behavioral tendencies, and understand any potential triggers.
6. Obey leash laws and ensure yard fencing is sufficient to contain the dog, as applicable.
7. Be especially cautious with your dog around young children, who are the most frequently bitten.
8. Maintain your dog’s health, as dogs who are sick or in pain may be more likely to lash out.
9. Recognize your dog’s behavior, including knowing when they are agitated or stressed. Be ready to de-escalate a situation if this occurs when others are around.

Ultimately, you know your dog better than anyone. Consider talking with a veterinarian about potential causes and remediation if your dog is acting strangely or showing signs of aggression.

For More Information

Dogs can be beloved additions to your family and household, but these animals still possess sharp teeth and claws that could inflict significant injuries. As a responsible dog owner, you should be diligent and dedicated to minimizing the risk of your pet harming someone else or otherwise causing damage. Furthermore, adequate insurance coverage should be a top priority to ensure you can manage the financial fallout of such incidents.

We’re here to help. At Rinehart, Walters & Danner Ins we can help you understand coverage options related to your dog and limit potential losses. Contact us today for more resources.

If your new boat is a canoe or an un-motorized boat, there’s a chance that it’s covered under the personal property portion of your Homeowners Insurance policy. However if it is anything larger, you need a separate boat insurance policy. A Bout Insurance policy is there to ensure you and your boat are protected. After all, I’m sure you purchased your boat with long term plans in mind.

Does My Homeowners Insurance Cover My Boat? 

Theft to watercraft, including furnishings, equipment and outboard motors, is typically excluded if the theft occurs outside your residential premises. To cover your boat and its accessories, you need a separate boat insurance policy.

What is Boat Insurance? 

A typical boat insurance policy will protect your boat, motor, equipment and passengers. Coverages will usually include:

• Theft, loss or damage to the boat and attached equipment
• Bodily injury coverage, if someone else is injured
• Damage caused to someone else’s property by your boat or watercraft
• Liability coverage for your passengers, which would include family and guests
• Medical payment coverage for injuries to the occupants of the boat

Physical Damage Coverage

Physical damage coverage insures your boat, motor, boat trailer, boating equipment and other personal property against accidental loss or damages. 

Liability Coverage

A Boat Insurance policy will include two principal liability coverages.

•  Personal liability coverage provides protection for legal liability. It pays up to the limit of your policy, the legal obligations imposed upon you due to an accident resulting from the ownership, maintenance or use of your watercraft, including bodily injury, property damage and legal defense. 
• Medical payments coverage pays medical expenses up to the limits in the policy, including the insured’s boating-related medical expenses from an accident arising out of the ownership, maintenance and use of the boat. Expenses include hospital, medical and ambulance. 

Additional Coverage Options

Along with the basics some extra coverage to consider include:

• Reasonable Repairs. Covers repairs done to protect covered property from further damage
• Emergency Services. Pays for reasonable costs that you incur 4resulting from specified emergency service to your boat, motor or boat trailer. 
• Wreck Removal. Pays the reasonable expenses you incur for any attempted or actual raising, removal or destruction for the wreck of your watercraft when damage is caused by an insured loss and remove or destruction required by law. 
• Umbrella Liability. Provides additional boat insurance coverage across the board for home, auto and watercraft. 

Whether your boat is big or small, it’s still an investment. As a result, we want to make sure your are protected and familiar with your coverage. Call us at 419-522-9892 to review your policy or get a quote today.