So, you are shopping for homeowners insurance to protect your home and the assets in it. It may also be important to make sure you have personal liability coverage too. It has been documented that dealing with insurance claims of this nature can be particularly challenging for everyone involved but this will protect you. When comparing policies and getting quotes, it is important to find out exactly what you are paying for. Is water or flood damage covered or is this a separate policy? Is damage to property which is ruined if a burglar breaks in covered? What about damage to the property from fire or other “acts of God”? Before you settle on a policy, make sure you ask the right questions and learn what your homeowners insurance policy truly protects.
What should you ask when getting quotes?
Far too often homeowners simply presume things are covered rather than asking the questions to find out. So, how much is truly covered by your policy and is a basic homeowners insurance policy enough? Before settling on an insurer and policy coverage, some questions to ask when getting your quotes include:
- Is water damage covered? If not, how much water and flood coverage is required where I live?
- Are “acts of God,” covered? Damage from fire, lightning, heavy wind gusts, etc. Make sure you find out what is and what isn’t covered, so you can buy incidental coverage or supplemental coverage.
- What is the limit or max cap the insurer will pay out?
- If a burglar breaks in and damages property when trying to escape, is such damage covered (in addition to the items stolen)?
This is not an inclusive list of questions you have to ask, but does give you a basic idea of what is, and what isn’t covered by your policy. And, if necessary, it allows you to purchase supplemental coverage, and additional damage coverage on your property, to avoid huge out of pocket expenses in the event something like flood damage or water damage from melted snow occurs.
Finding the right policy
It isn’t as simple as calling one or two insurers and asking a few questions when generating quotes. In addition to calling between three to five insurers, you also have to make sure you are dealing with a trusted insurer. Inquire about discounts for bundled policies, for loyalty programs, and payout limits. Further, you have to purchase a policy from a trusted insurer and one which pays out immediately in the event of damage when you actually do have to rely on your homeowners insurance policy to cover damage costs to your property. If you want to save time while getting the benefits of checking prices with several companies, an independent agent that offers coverage from several companies is the best way to go.
If you are looking to protect your home from all types of threats and damage, homeowners insurance is the way to go. Before deciding on a policy and insurer, make sure to consider these factors, and take the appropriate steps, to find the best coverage, highest coverage levels, and the most trusted insurance providers, before you make a purchase.