7 Questions to Ask Before Buying Homeowners Insurance

For many homeowners, especially first time buyers, purchasing homeowners insurance can be a difficult process. With all the different insurance policies out there, how do you ensure you choose the right one? It may seem like a no brainer, but most people forget to ask questions before purchasing a homeowners insurance policy. Knowing the answers before selecting your policy can save you money down the line or avoid a potential headache when it’s time to make use of your policy.

So, here are 7 questions to ask before choosing your homeowners insurance policy:

1. How much will it cost? Seems simple, but it’s an important one that should be asked up front to prevent you from wasting time on a plan that’s outside your budget. Many insurance companies will provide a calculator tool which will allow you to get a quote or an estimate yourself without speaking to a representative. But, the best way to find out how much you might pay is to speak to a professional insurance agent who can answer any questions you might have. Ask about any discounts available based on your job type, family status, location, or whether you’re a first or long-time homeowner.

2. Is there a deductible? Most policies will include a deductible amount; these can vary from policy to policy. The deductible amount must be paid before the insurance company will pay your claim. You should ask what specific losses require that a deductible be paid.

3. What is covered? Yes, you should definitely ask exactly what your insurance covers. One of the biggest mistakes a homeowner can make is not asking this question and being surprised when accidents or circumstances – natural or otherwise – occur that could leave you uncovered.

4. What isn’t covered? Ask about what your policy doesn’t cover. I know it seems redundant having already asked what is covered, but the more you ask the better understanding you’ll have. Specifically, ask about any exclusions in the policy such as:

●       Wear and Tear

●       Earth Movement

●       Flood

5. What optional coverage is available on the plan? Many times, homeowners may wish to insure less common items, parts of their home, and other things that may not necessarily come standard with the policy. It’s always a good idea to ask what other optional coverages are available to protect your home, family, and belongings.

6. Are rates affected by the type of construction? Would it matter if your home were brick or frame or something less conventional? It’s better to be safe than sorry; ask before you agree to any plan terms.

7. Do you offer umbrella coverage? Umbrella coverage provides additional protection with higher limits of liability coverage for your home, vehicle, and other personal belongings.

As you do more research, you may have additional questions not included in the list above, so be sure to add them to your checklist. It’s always better to go in with a lot of questions as this will help you rest assured that your home, family, and personal items receive the maximum level of protection.