One of four people in the southern U.S. incorrectly believes that flood damage from a hurricane is covered by homeowners' insurance, according to 
recent research from the Insurance Information Institute. That is a serious gap in policyholder insurance knowledge that agents—especially in Florida—continually struggle against.
It is made worse by another common gap: Policyholders thinking that their valuable possessions such as collectibles are adequately covered by their homeowners' or renters' policy.
In reality, valued possessions are often inadequately insured by the contents' coverage of a homeowners' or renters' policy. For example, a homeowners' policy may have a $2,500 sub-limit (after deductible) for collections. The typical claims adjustment process would appraise these items at actual cash value. For a collector with a garage decorated as a vintage gas station or a dollhouse furnished over a 40-year period, a $2,500 check will underinsure the loss by thousands—maybe tens of thousands—of dollars.
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