⚠️ Are You Underinsured? 7 Warning Signs You Shouldn’t Ignore
Are You Underinsured? 7 Warning Signs You Shouldn’t Ignore
When it comes to insurance, most people think they’re covered… until something actually happens
The truth is, being underinsured is way more common than people realize — and it can cost you thousands (or even hundreds of thousands) of dollars out of pocket
At Briggs Agency Inc., we see this all the time. People have some coverage… just not enough when it really matters.
Let’s break it down 👇
🧠 What Does “Underinsured” Actually Mean?
Being underinsured means your insurance policy doesn’t fully protect you financially in the event of a loss.
👉 In simple terms:
You have insurance… but not enough to cover the real cost.
That gap?
That’s what YOU pay out of pocket
🚨 7 Warning Signs You Might Be Underinsured
1. Your Coverage Hasn’t Been Updated in Years
Life changes fast:
- Home values go up
- Cars get more expensive
- Your income increases
- You accumulate more assets
But if your policy hasn’t been updated in 3–5+ years, there’s a good chance your coverage is outdated.
👉 Example:
Your home was insured for $200,000 years ago… but now it costs $320,000 to rebuild.
That gap = major financial risk.
2. You Only Carry State Minimum Auto Coverage
Minimum coverage might save you money upfront… but it’s risky ⚠️
👉 If you cause an accident:
- Medical bills can exceed $100,000+
- Lawsuits can go even higher
If your policy only covers a small portion, YOU are responsible for the rest
3. You Don’t Have Umbrella Insurance ☔
Umbrella insurance is one of the most overlooked protections.
It kicks in after your other policies max out.
👉 Without it:
- A serious accident
- A lawsuit
- A major liability claim
…could wipe out your savings, home equity, or future income
4. Your Home Insurance Is Based on Market Value (Not Rebuild Cost) 🏠
This is a HUGE mistake.
👉 Your insurance should cover:
What it costs to rebuild your home — not what you paid for it.
Why?
- Construction costs
- Labor shortages
- Material price increases
All of these can make rebuilding WAY more expensive than expected.
5. You Have Valuable Items That Aren’t Specifically Covered 💍
Standard policies have limits on things like:
- Jewelry
- Watches
- Electronics
- Collectibles
👉 If you have high-value items and they’re not scheduled on your policy…
You may only get a fraction of their value back
6. You’re a Business Owner Without Proper Coverage 🏢
If you own a business, being underinsured can be devastating.
👉 Common gaps include:
- Not enough liability coverage
- No business interruption insurance
- Missing cyber liability protection
- No coverage for equipment or inventory
One claim could shut everything down.
7. You Chose the Cheapest Policy Without Understanding It 💸
We get it — everyone wants to save money.
But cheap insurance often means:
- Higher deductibles
- Lower limits
- More exclusions
👉 Translation:
You save now… but pay BIG later
😳 What Happens If You’re Underinsured?
This is where it gets real.
If your coverage isn’t enough:
- You pay the difference out of pocket
- You could face lawsuits
- Your assets could be at risk
- Your financial future could take a major hit
✅ How to Make Sure You’re Properly Covered
Here’s what you should do:
✔️ Review your policies annually
✔️ Update coverage after major life changes
✔️ Increase liability limits
✔️ Consider umbrella insurance
✔️ Work with an independent agent
👉 Why independent?
Because they can compare multiple carriers to find the right coverage AND price.
Why This Matters (Especially Here in Northwest Indiana)
Living in the Midwest — especially the 219 — we deal with:
- Severe storms
- Wind damage
- Flood risks
Having the right coverage isn’t optional… it’s essential.
You can experience being a part of and full-serviced independent Insurance Agency today! Simply contact Briggs Agency Inc, if you are interested in an insurance review at 219-769-4840 or visit our website at www.BriggsAgency.com. We look forward to hearing from you!
Blog post written by: Zachary Pelke
