Questions to Ask When Shopping for Home Insurance

June 27, 2018

Shopping for home insurance can be overwhelming at times. When you have different terms and quotes thrown at you, it might be hard to make a decision. Instead, put the ball in your court and you ask the questions. With the following pointed questions, you can determine which insurance policy is right for you.

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Will I be Covered no Matter the Type of Damage That Occurs?

Home insurance isn’t a one-size-fits-all policy. You’ll find that different policies cover different things. Whatever you do, never assume you will be covered during a specific event. You have to ask. For example, flooding usually isn’t covered on your homeowner’s insurance. You have to buy a separate policy. Wouldn’t you rather know that ahead of time before disaster occurs, rather than finding out the hard way?

Don’t focus just on flooding, though. specifically ask about any threats that your area is known for, such as tornadoes or hurricanes. Ask specifically how you will be covered if damages occurred so that you know how much extra insurance you may need should your home insurance not cover you.

Do I Need Endorsements on my Home Insurance?

Again, home insurance doesn’t cover everything. That very expensive diamond necklace your spouse gave you probably isn’t covered. In fact, anything of value is worth inquiring about. Your personal belongings are usually only covered up to a certain dollar amount. Once you surpass that dollar amount, you are no longer covered. With the right endorsements in place, though, the specific costly items will have the coverage they need in the face of disaster.
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How Much Liability Insurance Does the Policy Include?

Liability insurance covers more than things that happen in your home. It may also cover court costs if you are sued for damages your pet caused to someone. Sometimes the default coverage isn’t enough, though. Ask the insurance agent about the coverage that is included with the policy. Let’s say it’s $100,000, are you comfortable with that? Would you prefer a higher amount? You will have a higher premium, but the protection could be well worth it.

How Much Additional Living Expense Coverage do You Get?

If you are displaced from your home after a disaster, you will need money to cover your living expenses. This coverage is called Additional Living Expense Coverage. Many insurance companies provide you with 20% of your dwelling amount for additional living expenses. Again, don’t assume this is the case, though. Talk with your agent about the amount of coverage that comes with the policy they are providing you so that you can make sure it is adequate.

Are There any Discounts?

You know you can likely take a higher deductible and lower your premium, but what other discounts can you receive? Insurance companies give discounts for a variety of reasons including certain safety precautions you have in your home or if you have other insurance policies with them. You won’t know if they offer a discount unless you ask, so ask away!

Shopping for home insurance is important because you will likely get different quotes from different companies. Don’t assume all policies are the same though. Ask very specific questions so that you know exactly what you are getting. Only then can you decide which policy is right for you.

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