I spoke with a home insurance salesperson who said that “total finished living area” doesn’t include finished basements or below-grade living spaces. I received a surprisingly low quote for my new home insurance, but it appears this quote is based solely on the gross living area square footage, excluding approximately 1800 square feet of finished basement and an in-law suite that are partially below ground. When I called the agent back for clarification, he assured me that this was accurate and that the finished basement was noted in the policy. However, I found on Google that total finished living area differs from GLA. I’m just trying to ensure that I’m not underinsured based on this information.
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 specifics of your home insurance coverage, especially regarding the details of your total finished living area and how it relates to your coverage. The distinction between “total finished living area” and “gross living area” can be significant in determining how much coverage you actually have.
Here are a few points to consider:
Definitions: Generally, gross living area (GLA) refers to the entire finished space within the home above grade, while total finished living area might sometimes exclude certain spaces like finished basements. However, definitions can vary by insurance provider and policy, so it’s crucial to understand how your specific insurer defines these terms.
Policy Terms: Since the agent mentioned that the finished basement and in-law suite are noted in your policy, it’s worth reviewing the actual policy document to see how these areas are covered. Look for any specific mentions of finished basements or coverage limits, as these factors can affect your overall protection.
Reassurance from the Agent: It’s good that you reached out to your agent for clarification. If you’re still feeling uncertain, don’t hesitate to ask for further details or even a written explanation of how the total finished living area is calculated and what it includes.
Risk of Underinsurance: If you suspect that the finished basement and in-law suite being excluded could result in inadequate coverage, it might be wise to speak with your agent about adjusting the policy. You want to make sure you’re adequately covered in case of a claim.
Seeking a Second Opinion: If you’re still uneasy, consider getting a second opinion from another insurance agent or company. They can provide clarity and help ensure you’re getting the right coverage for your home.
In summary, take the time to double-check the definitions and coverage amounts in your policy, and don’t hesitate to advocate for yourself or seek additional clarification from your insurance provider. It’s better to be proactive now to ensure you’re properly insured.