When you buy a home, you want to make sure it’s protected along with everything in it. Since it will probably be the most expensive thing you’ll ever purchase, it’s imperative that you have homeowners insurance. But how do you make sure you’re protected for everything that should happen to your home throughout the years you’ll own it?
You need to shop around and be sure to ask a lot of questions about what the policy has to offer, to make sure you get just what you need to keep your investment safe. Here are the questions you should ask your insurance agent about any potential home insurance policies you are going to purchase.
1. Will the policy cover the market value of the house or replacement value?
You want to know what should happen should the house be completely destroyed. If it pays market value, that means you get paid whatever the house would cost in the current economy prior to the loss. If you get replacement value, you will be paid whatever it costs to actually replace the house. Having the house rebuilt exactly as it was could be considerably more than the market value.
2. What are the limits, if any, that the policy will pay for items in the home?
Homeowners’ insurance will not only cover you for the house but also what’s inside of the house in most cases. You will want to know if there’s any limit to how much it will pay. You might need to increase the limits if you have expensive items in your home such as jewelry and electronics.
3. Are there any events that the policy will not cover?
If you live in a flood zone or a place that gets earthquakes, then you might have to purchase separate insurance to cover you in case of flood or earthquake damage. However, if you can get a homeowner’s insurance policy that will cover such things, that might be the more ideal situation. The main thing is to know what’s covered now, rather than after the tragic event happens.
4. What are the limits for slip and fall type accidents?
If someone comes to your home and gets injured, you want to know that your insurance will cover any medical expenses they might incur if they get injured while on your property. This way you don’t have to pay out of pocket.
5. What are the monthly premiums?
You will need to weigh all of the requirements that you need for protection with how much your monthly premiums are for the insurance. If you can’t afford the insurance and it lapses, then it’s going to do you no good.
6. What’s the deductible?
This is the amount of money you’ll have to pay for a repair on your home, and insurance will pay the balance. The higher the deductible, the lower your monthly premiums. However, it’s important that you keep your deductible affordable for you. If you need to use your insurance, you want to be sure you can afford that deductible.
7. Can you receive a discount for multi-policies?
Oftentimes, insurance companies will give you a discount if you insure other things with them. So if you have your automobile insurance with the same company as your home insurance, then you can likely receive a discount on both policies. Make sure you ask about that.
Ensuring your home and all of your belongings is going to save you a lot of headache in case of damage or theft. By asking these questions, you’ll be sure to know exactly what you’re protected against.