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Questions To Ask Your Home Insurance Agent Before Buying A Policy
2010-03-31
Before you buy home insurance, there are several questions that you should ask your insurer in order to fully understand the home insurance coverage. Keep in mind that your home insurance will protect you should the time come when you will have to replace your possessions in the event of loss. Without insurance, you will be faced with staggering expenses. Here are some questions you should ask before signing any deals.
What type of home insurance policy is it? In the US, there are 8 levels of home insurance that ranges from full homeowner's insurance that will cover your entire home and its contents, to insurance for mobile homes, condos, and renters. Is your insurance coverage enough? Be sure that your policy will cover all possessions and assets in your home. Ensure that your home will be fully covered from any type of damage or you may be at risk of losing all of it and still be obliged to pay the bank for mortgage fees. What is not covered in the home insurance policy? Determine which features are excluded from the policy. Make sure that your policy thoroughly and clearly outlines all details
Is there a limit for valuables such as jewelry, silverware, and computers? If you own many valuable possessions, it is crucial for you to ask if they are covered in the policy. Does the home insurance policy cover water damage? Most home insurance policies cover water damage due to overflowing, but damages from flooding are usually not included. Should you consider extra homeowner's coverage? Usually, earthquakes and flooding, plus your valuable paintings, are not covered but there is an optional home insurance for such items and perils that are not covered by the insurance policy.
One of the most commonly asked questions is, how much is the deductible? Can you save money by paying a higher deductible? Technically, your monthly premium will be less if you have a high deductible. Weigh your options and decide whether you should have lower payments with a higher deductible or just pay a generally lower deductible. Is there safety equipment that can be installed in the home to save money on insurance? Typically, the answer is yes. Your insurer should be able to guide you with such upgrades. This could save you a lot of money when it comes to your premiums. Does the insurance company have a 24-hour claims service? An insurance company with good customer service is ideal. Consult with your insurance agent about their claims service and the process of filing a claim. Obtaining the answers to these questions before you buy home insurance, will help you secure the right policy that will suit your needs.