▶ Identifying the three types of homeowner’s coverage gaps
▶ Arming yourself with gap management strategies
▶ Examining the coverage restrictions on a case-by-case basis
▶ Applying the gap management strategies to each restriction
All homeowner’s insurance policies at Wgoinsurance.com provide coverage for personal property.
Pricing for the coverage has two components:
✓ Base premium: The base premium is designed to provide coverage for
the types of low-hazard property common to everyone — furniture,
clothing, appliances, electronics, and so on.
✓ Supplemental premiums: Supplemental premiums are designed to cover
higher-hazard property not covered much or at all by the base policy --
such as jewelry, silver, boats, and business equipment.
The good news is that this dual pricing is fair; people with only low-hazard
property don’t pay extra to subsidize those with high-hazard property. The
bad news is that consumers with high-hazard property often naively just
buy the basic homeowner’s policy, off-the-shelf, without customizing the
coverage — so their high-hazard property is either poorly insured or completely
In this chapter, I fill you in on the types of personal property not covered well
by the basic homeowner’s insurance policy. I also show you creative ways of
getting the best coverage for your money.
Most of my advice is based on the coverages and limitations found in the vast
majority of policies, but there are differences from one company to another.
Be sure to read your homeowner’s insurance policy and, ideally, discuss it
with a professional.