5 Questions to Answer Before Buying Homeowners Insurance


5 Questions to Answer Before Buying Homeowners Insurance

5 Questions to Answer Before Buying Homeowners InsuranceIf you’re in the process of buying homeowners insurance, it’s very important that you can answer the right questions about your coverage. Making sure that you will be well covered in the event of an emergency is very important. You need to  go over your policy with a professional insurance agent before signing any paperwork. Here are five questions that need to be answered before you sign on the dotted line with your insurance policy:

Does the home have Previous insurance claims? 

Asking the previous homeowner if they had to make any insurance claims can be important to making a decision on your own coverage. If you’re going to insure a home that is newer, it’s often going to be much cheaper than insuring an older home. A home that has had many insurance claims around it could point to the signs of poor construction or even greater factors at work such as a sinkhole or problem with the property.

How much insurance coverage is needed?

Have a professional home inspection agent or homebuilder take a look at your home and provide a full cost to rebuild the home. You will also need to consider protection for complete replacement even though your home has likely depreciated in some form.

What is the value of your in-home assets?

The personal belongings that are inside your home also have a value and need to be properly insured. Make sure that there is coverage for the replacement cost of these items as well as the actual value of the items too.

How much deductible works for me?

The deductible is the amount of money that you’ll have to pay out-of-pocket before you receive any coverage. If you have a higher deductible, your insurance coverage will also be much more expensive. Choosing a lower deductible can lower your costs but it often gives you a higher premium. 

Does my home fall in a high risk zone?

There are certain areas across the world that are considered to be high risk and this is because there is an increased frequency of sinkholes, floods, tornadoes and more. When your property is considered to be high risk there is a chance that your insurance policy may not cover some of the additional risks associated with your area. 

Consider these top questions if you are going to be signing a new insurance policy. Make sure the day can be answered before you complete any new insurance contract. Contact us today for a consultation if you’re not sure what the right homeowners insurance is for you!