When you buy a house, you want to be sure that it is protected along with everything in it. Since it will likely be the most expensive thing you will ever buy, it is imperative that you have homeowner insurance. But how can you make sure that you are protected from everything that should happen to your home for the years that you own it?
You need to shop around and ask lots of questions about what the policy has to offer to make sure you are getting exactly what you need to keep your investment safe. These are the questions you should ask your insurance agent about any home insurance policies you intend to buy.
1. Will the policy cover the market value of the home or the replacement value?
You want to know what should happen if your home is completely destroyed. If it pays market value, it means you are earning as much as a house in the current economy would have cost before losing.
If you get replacement value, you will be paid for the actual home replacement. Rebuilding the house exactly as it was could be far more than the market value.
2. What are the limits, if any, on which policy will pay for items at home?
Homeowner insurance covers not only your home, but in most cases what is in the home. You will want to know if there is any limit to how much he will pay. You may need to increase the limits if you have expensive items such as jewelry and electronics at home.
3. Are there any events that are not covered by the policy?
If you live in a flood zone or an earthquake zone, you may need to take out separate flood or earthquake insurance. However, if you can get a homeowner insurance policy that will cover such things, this may be a more ideal situation. The main thing is to know what is being discussed now, and not after the tragic event.
4. What are the limits for slip and fall accidents?
If someone comes to your home and gets injured, you want to know that your insurance will cover any medical expenses they may incur if they get injured while staying on your property. That way, you don’t have to pay out of your own pocket.
5. What are the monthly contributions?
You will need to weigh up all your requirements for protection against the amount of your monthly insurance premiums. If you can’t afford your insurance and it expires, that won’t do you any good.
6. What is the deduction?
This is the amount you will have to pay to repair your home and your insurance will cover the rest. The higher the deductible, the lower the monthly premiums. However, it is important to keep your deductible. If you must take out insurance, you want to be sure you can afford it.
7. Can you get a discount on multi-policy?
Often, insurance companies give you discounts if you insure other things with them. So if you have car insurance with the same company as your home insurance, you will likely get a discount on both policies. Make sure you ask about it.
Home insurance and all your belongings will save you a lot of headache in case of damage or theft. By asking these questions you will be sure that you know exactly what you are protected from.