Protecting your home is a smart investment. You can view homeowner’s insurance like an investment in your financial future. Ask your insurance provider these five questions before you decide to buy a policy that is solely based on premiums.
#1 – What does the policy cover (and what doesn’t)?
The policy is the most important aspect of home insurance. What exactly will the policy cover? What happens if your lawnmower gets stolen from your garage? What happens if your lawnmower is stolen from your garage? Will you receive the full purchase price or the depreciated value of the mower? Will your policy protect you if you cause an injury to someone else outside your home? Knowing exactly what your policy covers can help you determine how much and which type of insurance you should purchase.
#2 – How much coverage do I need?
A list of all your possessions will be required by insurance agents. This is known as a home inventory and can be very helpful in case of a disaster, fire or robbery. It is a good idea to get all your possessions appraised and then buy an insurance policy that covers more. This will help you determine whether or not you should purchase riders. These are extras that add to your insurance policy to protect expensive items such as jewelry and paintings.
#3 – What is the Cost of Rebuilding My Home?
Your actual dwelling and any damage to your home will be covered by part of your policy. Real estate can appreciate in value, so you will want to ensure that your policy covers the costs of rebuilding your home.
#4 – What Claims Have Been Made On My Home In the Past?
Understanding and learning about the types of claims that have been made against your home in the past will help you determine what type of coverage you need now. If your home is located in a floodplain and has been subjected to flooding in the past, then you will need separate flood insurance. Similar to the previous example, severe storms that have caused damage in the past are likely to cause more damage in the future.
#5 – What happens when something happens?
It is important to know what to expect when you file a claim. You will be able speak to your local agent. Is it possible to speak with your local agent directly? The company may place your family in a hotel while repairs are being made. This will help you make an informed decision about your policy and give you peace of mind.
Once you know the answers to these questions, you can make an informed decision. You need to understand the details of your policy, what your home is worth, and how your insurance company will handle you if you have to file a claim.