I just heard from my home insurance agent that the “total finished living area” doesn’t account for finished basements or below-grade rooms. I received a lower insurance quote for my new home than I expected, but it appears to be based solely on the gross living area (GLA) and doesn’t include about 1800 square feet of finished basement and in-law suite that are partially below ground. When I followed up with the agent, he assured me that the finished basement is noted in the policy. However, I found online that total finished living area is distinct from GLA, and I’m concerned about potentially being underinsured. Should I be worried about this?
Home insurance salesperson saying “total finished living area” does not include finished basement or below-grade finished rooms?
It’s understandable to be concerned about your coverage, especially when it comes to determining the proper square footage for home insurance purposes. The terms can indeed be confusing. Generally, “total finished living area” usually refers to the space above grade that is fully finished and habitable, while “gross living area” (GLA) might sometimes include finished basements, but not always in the same context.
Since your agent assured you that the finished basement and in-law suite were noted in your policy, it’s a good sign that you’re not underinsured. However, it would be wise to clarify a few details:
Get Documentation: Request a copy of your policy and any related documents that clearly outline how your living space is defined. Look for specific language regarding the finished basement and in-law suite.
Ask About Coverage: Check to see if the policy outlines the coverage provided for below-grade finished spaces. Understand how it applies in the case of a claim.
Compare Definitions: Since you noted that sources like Google differ in definitions, it’s worth asking your agent to clarify how the insurance company defines “total finished living area” in relation to their policies.
Consider a Second Opinion: If you’re still unsure or uncomfortable, seeking a second opinion from another insurance provider or agent could provide additional peace of mind.
It’s essential to ensure you have appropriate coverage for your home, especially if substantial square footage is not included in the calculation for your insurance. Don’t hesitate to ask more questions until you’re confident in your understanding of the policy terms.