I recently spoke with a home insurance salesperson who informed me that the “total finished living area” does not include finished basements or below-grade finished rooms. I received a lower rate quote for my new home insurance than I anticipated, but it seems the quote was based solely on the gross living area square footage. This doesn’t account for about 1,800 square feet of finished basement and an in-law suite that are partially below ground. When I contacted the agent for clarification, he assured me that the finished basement was indeed noted in the policy. However, my research suggests that “total finished living area” differs from gross living area (GLA). I want to ensure I’m not leaving myself underinsured with this policy.
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 the definitions being used by your insurance agent, especially when it comes to ensuring you have adequate coverage for your home. Generally, “total finished living area” can vary in meaning depending on specific insurance companies and their guidelines. Here are a few points to consider:
Definitions: Typically, “gross living area” (GLA) refers to the total area of all finished spaces within your home, including above-grade and potentially even below-grade areas if they meet certain criteria. However, “total finished living area” often excludes below-grade areas, depending on the insurer’s definitions. It’s always best to clarify these definitions directly with your provider.
Policy Details: Since your agent reassured you that the finished basement and in-law suite are noted in your policy, it’s important to review your coverage documentation. Look for specific language that outlines how the finished basement is covered and confirm whether it is included in your total insured value.
Potential for Underinsurance: If the finished basement and basement suite are significant portions of your home (like your mentioned 1800 square feet), ensure they are adequately considered in your coverage limits. Underinsurance can leave you vulnerable in the event of a loss.
Get a Second Opinion: If you’re still uneasy, consider reaching out to another insurance agent or company for a second opinion. They can provide clarity on whether your current coverage matches industry standards.
Future Reassessments: It’s good practice to reassess your policy and coverage limits periodically, especially after any renovations or changes to your home’s structure.
Ensure you feel confident and secure in your coverage; don’t hesitate to ask your agent for more details until all your concerns are addressed. Ultimately, your peace of mind is the most important aspect of your home insurance policy.