Insurance gaps

You might think you have airtight insurance protection against storms, car accidents and other mishaps. But you’d hate to discover hidden cracks in your coverage once it’s too late.

Here are five insurance problems you might not be as prepared for as you think — and how to plug the coverage gap.

1. No flood insurance

Flooding has occurred in every state in the country over the past five years, according to the Federal Emergency Management Agency. Yet only 12% of homeowners nationwide carry flood coverage, an Insurance Information Institute poll found.

Homeowners insurance doesn’t cover flooding; you’ll need a separate policy. You can find local agents through the National Flood Insurance Program. You can also ask your home insurer for help starting a policy through the federal program, or whether there are companies in your state that offer private flood insurance.

There’s a 30-day waiting period before coverage kicks in, so get your flood insurance squared away well ahead of coming storms.

2. No way to pay off a totaled car

Gap insurance helps you avoid owing money on a car loan or lease if your vehicle has been totaled or stolen. Along with comprehensive and collision coverage, gap insurance is a smart addition if you lease or finance a car.

Say you lease a $20,000 car at payments of $400 a month. Five months later, your car is totaled in an accident. If the car’s value has dropped to $15,000, that’s the amount your collision claim check will be, minus your deductible. That won’t be enough to cover the $18,000 left on your lease.

This is where gap insurance kicks in. It makes up the difference between what your car is worth when it’s stolen or totaled and how much you owe on a car loan or lease.

You can buy gap insurance from the car dealership or your lender. Or you can go through your car insurance company, which is typically cheaper unless you want gap coverage for several years.

» COMPARE: Car insurance quotes

3. No plan for sewage backups

You may not realize that you’re responsible for the sewer line that runs from the main pipeline in the street to your house. Yet standard home insurance typically doesn’t cover backups in this part of the line. Enter sewer backup coverage. It pays for cleanup and repairs from spewed sewage in your house.

Sewer backup coverage is relatively affordable — $40 to $50 a year, according to the Insurance Information Institute. Talk to your home insurer about adding this kind of coverage.

4. No income after a disability

Among 20-year-olds, more than 1 in 4 will suffer a disability before retirement age, according to the Social Security Administration. If you can’t work because of an illness or accident, you need a plan to pay your bills.

Social Security disability insurance is available only to people with long-term disabilities lasting at least one year. Just 38% of workers have access to short-term disability insurance through their employers, according to the Bureau of Labor Statistics.

You don’t have to rely on your workplace for coverage. Individual disability insurance is available from several insurers, including State Farm, MetLife and Mutual of Omaha. If your employer doesn’t offer short-term disability insurance or your current benefits fall far short of replacing your full income, look into getting a policy elsewhere.

5. No financial safety net for earthquakes

Most homeowners, even those who live in high-risk areas, go without earthquake insurance. They risk financial ruin if their homes and belongings are destroyed. Only 10% of California residents have earthquake insurance, and 14% of people in Western states, according to the Insurance Information Institute.

Standard homeowners insurance won’t pay to fix damage caused by earthquakes. Home insurers might offer earthquake coverage as a policy add-on for an extra cost — and in California they have to. Or you might need to look for stand-alone earthquake insurance.

Californians can shop for a policy through the California Earthquake Authority. For those living in other states, ask your home insurer or agent for help finding companies that sell earthquake coverage or check your state’s department of insurance website.

Alex Glenn is a staff writer at NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com. This article was written by NerdWallet and was first published by The Associated Press.The article originally appeared on NerdWallet.