A Clarity Guide from Preddie & Associates Insurance Group — Carmel, Indiana
Insurance should protect you—not confuse you.
Yet many homeowners, drivers, and families in Carmel feel overwhelmed when reading their policy. Between coverage limits, exclusions, deductibles, endorsements, riders, and liability terminology, it can feel like learning a second language.Understanding Insurance Coverage Limits & Exclusions | Preddie & Associates Carmel IN
At Preddie & Associates Insurance Group, we break it down in plain, human language so you know exactly what you have, what you don’t, and what you may need to add.
What Are Coverage Limits?
Your coverage limit is the maximum amount your policy will pay for a covered loss.
Example:
If your homeowners policy has a $300,000 dwelling limit, and a fire does $400,000 in damage, the insurance company will pay up to $300,000—you’re responsible for the rest unless additional coverage is in place (like extended replacement cost).
Common Coverage Limit Examples
| Coverage Type | Typical Limit | What It Means |
|---|---|---|
| Auto Liability | 100/300/100 | $100K per person, $300K per accident, $100K property damage |
| Home Dwelling | Based on rebuild cost | Covers home structure, not market value |
| Personal Property | 50–70% of dwelling limit | Furniture, electronics, clothing, etc. |
| Personal Liability | $300K–$500K (often recommend $1M) | Covers lawsuits if someone is injured on your property |
Pro Tip:
If you haven’t updated insurance in 3–5 years, inflation & rebuild costs may mean your limits are too low today.
What Are Exclusions?
Exclusions are situations your policy does not cover.
Common Exclusions Homeowners Don’t Realize:
- Flood damage (requires a separate flood policy)
- Earth movement (earthquake insurance is separate)
- Power surge damage to electronics
- Sewer or sump pump backup (needs an endorsement)
- High-value jewelry beyond standard limits
- Wear, tear, and maintenance issues
Common Auto Exclusions:
- Using your personal vehicle for delivery platforms (DoorDash, UberEats) without commercial coverage
- Using your vehicle for rideshare (Uber/Lyft) without endorsement
- Racing or track use
- Mechanical breakdown
What Are Riders & Endorsements?
Riders (sometimes called endorsements or add-ons) modify your policy to fill coverage gaps.
Popular Riders / Add-Ons in Indiana:
✔ Scheduled jewelry (engagement rings, luxury watches)
✔ Sump pump & sewer backup
✔ Identity theft & cyber fraud coverage
✔ Equipment breakdown (HVAC, appliances, electrical systems)
✔ Replacement cost on personal belongings
✔ Service line coverage (underground water, gas, electrical lines)
These riders are often low-cost but protect against high-dollar losses.
Decoding Key Insurance Terms (Made Simple)
Insurance vocabulary doesn’t need to be intimidating:
| Term | Translation |
|---|---|
| Deductible | What you pay before insurance kicks in |
| Coinsurance | Penalty for being underinsured (common in property claims) |
| Liability | Covers injuries or damage you cause to others |
| Replacement Cost | Rebuilds/repairs new, not depreciated value |
| Actual Cash Value | Depreciated payout—cheaper policy, lower claim payment |
| Sub-limits | Smaller limits inside your main coverage (e.g., $2,500 jewelry limit) |
Employer-Provided Insurance: Is It Enough?
Many Carmel professionals rely solely on work benefits for life, disability, or health-related protection.
But here’s the catch:
Most employer plans offer just 1× salary in life insurance coverage.
For most households, the recommended amount is 10–12× annual income—especially if:
- you have children
- you carry a mortgage
- you rely on a single income
- you have debt
Why Supplemental Coverage Matters
| Coverage Through Work | Supplemental Personal Coverage |
|---|---|
| Ends if you change jobs | You own it—goes with you |
| Limited coverage (1× salary) | Tailored to your income, mortgage, family |
| May not include riders | Add riders like long-term care, disability, critical illness |
| Rate not based on health long-term | Lock in rate while younger/healthier |
Most clients pair employer coverage + personal policy for full protection.
Why Carmel Residents Are Reviewing Policies More Than Ever
Rising rebuild costs, stronger storms, and national rate hikes mean:
- outdated coverage = out-of-pocket loss
- exclusions matter more than ever
- riders are becoming essential, not optional
How Preddie & Associates Helps You Make Sense of Coverage
We:
-Review your current policy
-Compare it to what you actually need today
-Identify gaps (flood, sewer, valuables, service lines, liability)
-Explore riders or umbrella options if needed
No overwhelm. No upselling. Just clear answers.
Ready to Understand Your Policy the Right Way?
If your insurance feels confusing, you’re not alone—and you shouldn’t have to interpret legal language on your own.
Preddie & Associates Insurance Group
-Carmel, Indiana
-Independent. Local. On your side.
Get a free policy review today
We’ll explain what’s covered, what’s not, and what you may want to adjust.