Common Questions to Ask When Shopping for Home Insurance
Posted April 28, 2017 in Uncategorized
When shopping for insurance of any kind, you should ask a lot of questions. Homeowners insurance is an essential financial protection for homeowners, but there are a lot of different coverage policies to choose between. Before settling on your home insurance provider, be sure to ask the following questions to help you understand what you are getting into.
These questions can help you choose a homeowners insurance company that will take care of your needs and work with you. For more advice or assistance, please contact our insurance brokers at Gallant Risk & Insurance, Inc. Call 951-368-0700 or contact us online to speak to us today.
What is and isn’t covered?
What is covered by standard homeowners insurance? Before signing, you want to know EXACTLY what is and isn’t covered. Yes, damage to your property is covered, as is your liability to injuries or property damage to others. But what exactly does that mean? Most disasters are covered, but floods and earthquakes are not. Ask specifics: what falls under “routine maintenance” versus “unexpected damage”? Is a leaky roof covered, or is it considered “flooding”? If property is stolen, will you be reimbursed for its purchase price or its depreciated value?
How much would it cost to completely rebuild?
In the event of a total loss, such as from a fire or other covered disaster, your homeowners insurance should cover the expense of rebuilding your home from scratch. This will NOT usually match the purchase price of the home, so be sure to have your insurance agent walk you through it to make certain that you would be fully covered if disaster strikes.
How much do I need to protect?
Take inventory of your possessions before shopping for home insurance. Determine the value of all your possessions so you know what limits to set in case of a robbery or an insured disaster. This will also tell you whether you need additional protection of high-priced items such as art or jewelry.
How much liability protection do I need?
Liability protection covers you against lawsuits for property damage or injury that you, your family, or even your pets cause to others. You are covered anywhere in the world, but only up to the limit of your policy. Determining the value of your stocks, savings, or other outside assets can also help you set your liability limits if guests are injured and their medical bills are expensive.
What is my home’s claims history?
What happened to your property before it was yours? The claims history can tell you whether your home has had previous issues with sewage, wiring, roof damage, or other concerns. You may want to get extended protection for areas with a claims history.
Can I rely on this insurance company?
Do your research. Many companies will promise low rates but will not be dependable. Investigate their reputation and check your state’s insurance department to verify their licensure. Be sure they are known for settling claims promptly and fairly before choosing your company.
How can I save on homeowners insurance?
Every homeowner wants to save money, so you should ask about what discounts are available. Most companies offer discounts for certain things such as additional security, multiple policies, security systems, smoke detectors, being a certain age or retired, or even starting your policy online. Having undergone recent home renovations (such as modernizing your plumbing) can also provide a discount.
What is the process for filing and settling a claim?
It is essential to know how to deal with your homeowners insurance company after a disaster. Who do you contact? How available are they? How promptly do they respond and settle your claim? Will they pay for your lodging if your home is uninhabitable due to an insured disaster (additional living expense)? How will certain claims affect your premiums once it is time to renew? Speak to the company frankly and find out if others you know have settled claims with the same company. Current customers can be an excellent resource for finding out this information.