What Questions Should I Ask an Agent When Finding Homeowner’s Insurance?

When purchasing a homeowners insurance, you will most likely work with an agent. This agent will assist you purchase an insurance policy at a considerable price. Before you agree on any terms with the agent, you need to understand exactly what you are purchasing. Here are the top six questions you need to ask him to ensure complete understanding of the policy and financial protection.

What is the Value of My Personal Property?

A good home insurance should cover the cost of repairing or replacing personal property such as clothing, furniture and appliances in case of any damages. Most companies provide coverage equaling 50 to 70 percent of the total amount of insurance you have on the house. So if your total insurance is worth $200,000, most insurance companies will give you between $100,000 and $140,000. Make sure your agent tells you about how insurance companies handle personal property when estimating the cost of the coverage.

Can I Qualify for Any Discounts?

Speak to your agent about the discounts that might be available. You may get a discount if your house has burglar alarms, smoke detectors and dead-bolt locks. You can also get a discount if you have your car insured with the same company.

Is There Coverage for Natural Disasters?

There are numerous earthquakes and floods in the US. Unfortunately, only a handful of Americans have coverage because such disasters are excluded from basic home insurance by providers. Talk to your agent and ask him whether you might need specialized coverage beyond your basic homeowner’s insurance. Flood coverage is available from a few private providers and from the National Flood Insurance Program (NFIP).

How Much Liability Protection Should I Take?

Liability coverage protects against lawsuits and property damage that you or your family members cause to others. It also protects against any damages caused by your pets. Most providers have a limit on the amount they can pay for liabilities. The limits generally start at $100,000 and goes up to $1,000,000. It is recommended you purchase a liability coverage worth at least $300,000. If you have high-value assets and need more protection, talk to your agent about umbrella liability.

What Does My Homeowners Policy Cover?

A basic homeowners insurance cover the repair or rebuilding of the physical structures of your house. It helps you pay for damages caused by fire, lightning strikes, vandalism, theft, falling objects, damage from aircraft, windstorms and hailstones. The insurance also covers personal property and liability.

Is Water Damage Covered?

Water damage is a common problem in the US. You need to make sure your insurance policy covers damages caused by plumbing malfunctions, storms and humidity. Molds do not require a lot of moisture to start growing. They can grow well even in humid areas. Ask your agent to tell you exactly what type of water damage the insurance policy covers. This is very important since most providers do not honestly disclose whether they cover the house’s predisposition to mold.

Buying a homeowners insurance policy is something you need to be careful about. Any wrong decision and misplaced priorities may leave you regretting for the rest of your life. The following questions will enable you to get the answers you need to help you make the right choices.

Related Resource: 10 Great Ways to Save on Homeowners Insurance