Coverage Gap Checker

Risk Analysis

Analyze your financial life to find dangerous holes in your insurance protection.

Find the Blind Spots

Standard insurance policies have holes—exclusions, limits, and gaps that can leave you financially exposed. This tool analyzes your assets and risks to identify exactly where you are underinsured.

Common gaps include:

Flood damage (not covered by home insurance)
Liability limits lower than your net worth
Auto loan balances exceeding car value (Gap)
Income loss from disability

Quick Result

Protection Score

50/100

Serious Gaps Detected

Action required to secure your financial future.

Based on

• Net Worth: $500,000.00
• Liability: $300,000.00

Property & Liability

Do you own a home?

Is it in a flood zone?

Do you have flood insurance?

Total Household Net Worth

Liability Limit on Auto/Home

Do you have an Umbrella Policy?

Auto & Income

Do you have an auto loan?

Do you have Gap Insurance?

Are you self-employed?

Do you have Long-Term Disability?

This tool is for illustrative purposes only and does not constitute professional insurance or financial advice. Estimates are based on general assumptions and may not reflect actual policy premiums or coverage limits offered by providers. Always consult with a licensed insurance agent for accurate quotes and coverage advice.

Methodology and Trust

Last updated: February 2026Reviewed by: Editorial Team

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Mind the Gap: The 5 Insurance Holes That Bankrupt Families

Key Insights & Concepts

Standard insurance policies are Swiss cheese—they are full of holes. "Full Coverage" is a myth. Most bankruptcies after a disaster happen not because the person was uninsured, but because they were underinsured for a specific, excluded peril. This checker identifies the most dangerous gaps in the standard American insurance portfolio.

Part 1: The "Water" Gap (Flood vs. Backup)

Standard Homeowners policies cover "burst pipes." They do NOT cover:

Flood: Water rising from the ground (rain, river, storm surge). Needs a separate NFIP policy.
Sewer Backup: Water backing up from the drain or toilet. Needs a specific rider ($50/yr).
Seepage: Slow leaks through the foundation. Usually uninsurable maintenance.

Part 2: The "Earth Movement" Gap

Standard policies exclude "Earth Movement."
This means Earthquakes, Landslides, and Sinkholes are excluded.
If you live in CA, WA, or MO (New Madrid fault), you need a separate Earthquake policy.

Part 3: The "Cyber" Gap

Identity theft and Ransomware are the new burglary.
If a hacker locks your computer and demands Bitcoin, or steals your identity to open credit cards, standard home insurance offers minimal help ($500 limit?).
Solution: Add a "Cyber / Identity Fraud" endorsement.

Part 4: The "Wage" Gap (Disability)

Your biggest asset is not your house; it is your ability to earn $3M+ over your career.
Life insurance protects your family if you die. Nothing protects them if you get cancer and can't work for 3 years. This is the single largest financial gap for most families.

Part 5: The "Inflation" Gap

You insured your house for $300k in 2019. It costs $450k to rebuild it in 2026 due to lumber/labor inflation.
If you haven't updated your policy, you are effectively co-insuring the loss.
Solution: "Extended Replacement Cost" rider (pays 125% or 150% of the limit).

Frequently Asked Questions

No. Umbrella adds *height* (higher limits), not *width* (more perils). If the underlying policy excludes floods, the umbrella excludes floods too. Umbrella only kicks in for covered liability claims.

Because it is a 'correlated risk.' When a flood happens, it hits everyone in town at once, bankrupting private insurers. That is why the Federal Government (FEMA) handles flood insurance.

If your house burns down and the city requires you to rebuild it to 2026 building codes (new electrical, sprinklers), standard insurance won't pay the extra cost. This rider fills that gap.

Often excluded. Many carriers will deny the claim or drop you if they find out you have a trampoline without a safety net. Check your policy exclusions.

No. Auto insurance covers the car. Renters/Homeowners insurance covers the laptop inside the car.

It covers the difference between what the car is worth (ACV) and what you owe the bank. Vital for new cars that depreciate 20% instantly.

Only for business activities. If you use your personal car for DoorDash, your personal policy denies the claim, and your business policy might not exist. You need 'Rideshare' coverage.

It pays for a hotel if your home is uninhabitable. The gap is often the *time limit*. Some policies cap it at 12 months. Large rebuilds can take 18-24 months.

Often excluded. Pit Bulls, Rottweilers, etc., are frequently on the 'Prohibited Dog List.' If your dog bites someone, you are personally liable for the $50k medical bill.

Read the 'Exclusions' page of your policy. It is usually toward the back. Anything listed there is a gap.

Part 1: The "Water" Gap (Flood vs. Backup)

Standard Homeowners policies cover "burst pipes." They do NOT cover:

Flood: Water rising from the ground (rain, river, storm surge). Needs a separate NFIP policy.

Sewer Backup: Water backing up from the drain or toilet. Needs a specific rider ($50/yr).

Seepage: Slow leaks through the foundation. Usually uninsurable maintenance.