5 Key Questions to Ask Your Agent About Home Insurance
Did you know that around 93% of American homeowners have insurance on their houses? Homeowner’s insurance is important to protect you from unexpected damage, thefts, and injuries.
Without homeowner’s insurance, you may have to pay for expensive repairs. Many mortgage lenders won’t give you a house loan unless you have homeowner’s insurance.
What are some common questions to ask an insurance agent before choosing a policy? Keep reading to learn how to find the best home insurance.
Table of Contents
1. What Does My Policy Cover?
Before you choose a homeowners insurance policy, you need to understand what it covers. The main types of coverage include dwelling, personal property, liability, and additional expense coverage.
While dwelling insurance will cover the outside of your house, personal property will cover your belongings inside.
Liability is essential to cover the cost of injuries inside the house, and additional expense covers the cost of living if you have to leave your home.
2. How Much Coverage Do I Need?
When comparing home insurance companies, you should ask how much coverage you need. If you pay for too much insurance, you will waste money. If you pay too little, your entire house may not be covered.
How much house insurance you need will depend on your property value, personal belongings, and protection preferences. If you want to fully cover your house, consider getting replacement coverage.
3. Does My Policy Cover Floods?
Did you know that most homeowners’ insurance doesn’t cover flood damage? Most of the time, hazard insurance covers earthquakes, fires, and tornadoes, but not floods.
If you live in an area prone to flooding, make sure your policy includes flood insurance. Floods can happen due to heavy rain, hurricanes, and sewer backups.
If your house has flood damage and your insurance company refuses to help, click here to learn more about working with a lawyer.
4. How Are Insurance Rates Calculated?
When comparing home insurance quotes, you need to understand how rates are calculated. Your rates will depend on the age of your house, property value, and neighborhood.
If your house is old, falling apart, or in a high-crime neighborhood, you can expect to pay more for insurance. If you have made several insurance claims in the past, your rate may be higher.
5. How Can I Save Money on My Policy?
Because owning a house is expensive, you want to get a good deal on your policy. Before you choose a company, you should ask how you can save money.
You may get discounts for installing a security system, smoke detectors, and sprinklers. You also may be able to get a discount on your homeowner’s insurance if you bundle it with your auto insurance.
Are These Questions to Ask an Insurance Agent Helpful?
Your homeowner’s insurance will protect your house during natural disasters, fire, or theft. Keep these questions to ask an insurance agent in mind before you choose an insurance company.
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