Spring in the Midwest is a breath of fresh air — but it’s also when we start to see major insurance gaps show up for families, farms, and businesses. Some of the biggest risks are also the easiest to miss, especially when policies haven’t been reviewed in a while.
Here are a few of the top springtime coverage issues we see year after year — and what you can do to avoid being caught off guard:
Flood Damage Isn’t Covered by Home Insurance
A standard homeowners policy does not cover damage caused by rising groundwater, surface water, or flash flooding — even if it enters through your basement. This surprises many homeowners every spring, especially after heavy rainfall or rapid snowmelt.
What to do:
Consider adding coverage for water backup or flooding, especially if your home is prone to basement or foundation issues. These protections are often overlooked but can be crucial in the event of heavy spring rains or water intrusion.
Sump Pump Failure = Big Losses Without an Endorsement
Sump pumps work overtime in spring. But if yours fails, whether due to power outage, mechanical failure, or being overwhelmed, and water damages your basement, that loss won’t be covered unless you’ve added specific protection.
What to do:
Add a water/sewer backup endorsement to your homeowners policy. It’s usually affordable and covers damage caused by sump pump failure, drain backups, or sewer overflow — all common springtime issues in our area.
Low Umbrella Limits That Don’t Match Your Risk
From graduation parties and backyard barbecues to pool openings and weekend getaways, spring brings a spike in liability risk. One bad accident — like a guest getting injured on your property or a teen causing a serious crash — can quickly exhaust the basic limits of your homeowners or auto policy.
What to do:
Umbrella insurance provides an extra layer of liability protection. While $1 million is the standard starting point, it may not be enough depending on your assets, lifestyle, and risk exposure. If you own a trampoline, pool, rental property, or have a young driver in the house, consider increasing your umbrella limits.
Uninsured Recreational Vehicles or Toys
As campers, boats, jet skis, and ATVs come out of storage, we often find that they’re either not insured at all or only have liability coverage. Many assume their homeowners or auto policy extends to these vehicles — but it often doesn’t.
What to do:
Make sure these items have their own dedicated policies or endorsements. Coverage should include liability, comprehensive (theft, fire), and collision protection. Also ensure they’re registered and in compliance with local laws before you hit the road or water.
Farm Outbuildings and Equipment Are Undervalued
Over time, farm equipment depreciates — or, in some cases, gets upgraded without the policy being updated. Additions like new grain bins, renovated machine sheds, or recently purchased implements may not be accurately reflected in your farm policy, leaving you underinsured in the event of a loss.
What to do:
Do a spring inventory of your buildings, equipment, and tools. Talk with your agent to update values and ensure replacement costs align with today’s market — especially with inflation affecting building materials and machinery prices.
Business Growth That Outpaces Your Coverage
For seasonal businesses like landscaping, construction, or ag services, spring is often the busiest (and riskiest) time of year. But if your business has grown — new hires, expanded services, new vehicles or tools — your current coverage may no longer be enough.
What to do:
Review your commercial policy for key areas like general liability, workers comp, commercial auto, and equipment coverage. Make sure your limits are aligned with the actual size and scope of your operations this season.
Spring Is the Perfect Time to Recheck Your Coverage
It’s easy to overlook the small stuff—until it turns into something bigger. At Compass Insurance, we’re here to help you stay ahead of the unexpected and keep your coverage where it needs to be.
If you’re not sure where your gaps might be, let’s take a look together. Stop by or give us a call—we’re always happy to help.
