Irrespective of whether you are a new homeowner, or you are in your second or third home, the chances are that you do not fully comprehend everything about homeowner’s insurance. Due to changes in a variety of factors, insurance companies are forced to change the terms and conditions to suit their customer’s needs as well as to secure their profits.
Questions to Ask Your Homeowner's Insurance Agent
Knowing the extent of protection in a homeowner’s insurance and understanding how it covers you is crucial before committing to an insurance company. At American Financial Solutions, we are driven by excellence and professionalism.
We have prepared a list of questions you should ask your agent to clear up any confusion and ensure that you have the proper coverage in place.
1. What Does A Homeowners Insurance Policy Cover?
The typical homeowner’s insurance policy cover comes as a package of protection including the property (the home and other structures), personal property (content in the home), loss of use, liability, potential natural disasters, among other unforeseen events.
2. Is There A Guaranteed Replacement Clause in My Policy in The Event of Total Loss?
Some policies have a payout ceiling that might not cover the entire cost of rebuilding a home. Changes in building costs, property appreciation, cost of labor, and other factors will influence the replacement value of your home. You must answer the agent’s question as accurately and truthfully as possible. This will account for any contingencies that might affect the replacement value of your home.
3. How Much Personal Property Insurance Is Adequate?
Most people underestimate the value of the property in their homes. To understand how much personal property insurance is necessary, you should use home inventory software to help you tally the total value of the possessions in your homes in case you need to make a claim.
Moreover, you need to understand the difference between having your property valued at the replacement or market value. Consequently, you need to have the policy cover the replacement value.
4. How Much Liability Insurance Do I Need?
The typical homeowners' insurance policy has between $100,000 and $300,000 worth of protection against damage or injury claims by other people in your home. If you are a high net worth individual, you should consider extending the liability coverage with a supplemental umbrella insurance policy. Fortunately, the added costs will not break your bank and will be worth the extra cover.
5. Is There Coverage for A Home-Based Business?
Home-based businesses are on the rise, and if you have one, it is necessary to consider your options. If you have clients visiting your home-based business, you will need to have some liability cover to protect you and your property. However, not all insurance carriers have this option, and so you need to ask the agent or broker if it is covered before committing to them.
6. Does the Policy Include Flood Insurance?
Most home insurance policies do not cover damage caused by floods. However, you could always add flood insurance to your homeowner’s insurance cover. Irrespective of whether you live in a flood-prone area or not, flood insurance is a smart rider to have. Ask your agent how you can add flood insurance at an affordable rate.
7. Do I Qualify for Any Discounts?
Discounts are a fantastic way of reducing the amount of premiums you will pay for home insurance coverage. Installing smoke detectors, fire sprinklers, gated entries, monitoring services, and alarm systems are one of the ways to ensure that you qualify for discounts. However, be sure to ask the agent about the available discounts and make the necessary additions to your home.
You must ask these are some crucial questions to a homeowner’s insurance agent. You will avoid buying a policy that will not provide the adequate coverage you need to keep you and your family safe.
American Financial Solutions are always ready to answer your insurance questions. Moreover, we will give you free and non-obligatory quotes for your homeowner’s insurance cover.