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5 Questions you should ask your Home Insurance Agent

Written by Posted On Wednesday, 10 May 2017 14:11
5 Questions you should ask your Home Insurance Agent

Knowing the basics of homeowners' insurance is not enough to know which policy to settle for, you need to dig deep to know all the details that may later affect your home's risk exposure. Before you renew your current home insurance or take a new one, there are critical inquiries that you ought to make.

 

Buying a home insurance is something big. Most people regard their homes as the most significant financial transaction of their entire lives. As such, before you go ahead and insure your home, you need to ask several questions to ensure you get the best investment.

 

Questions every Homeowner should ask his/her Insurance Agent

1. How much liability protection do I need?

Liability insurance is vital for every home. It covers you against lawsuits for bodily harm that you, your pets, or kindred may cause to other people. Subsequently, it is vital to ask your agent how much liability insurance is enough. If your liability insurance is inadequate, your home may be at risk in case of any accident.

 

The standard liability may not be adequate if you have more assets than the cover itself. A liability insurance covers more than just your home, but it extends to everywhere you travel. With most liability policies set at a minimum of $100,000, your agent may recommend a cover that may not be adequate. It is, therefore, vital that your agent gets you the best cover that will not be exhausted in case you incur damages.

 

2. How much would it cost to reconstruct my home in the event of a total loss?

The homeowner's insurance policy you take should be able to rebuild your house if it is destroyed. The policy should cover the expenses that can build your house in its current location with the price of building materials remaining constant in the place. The different homeowner's insurance policies cover either total loss or partial losses on insured properties. The agent should inform you whether your current cover can cover all the building costs. He or she should also advise you that losses caused by floods and earthquakes need to be insured separately.

 

3. How much should you put into personal property insurance?

You need to know whether your insurance policy covers all your personal property. Most people forget to ask this question and end up losing their valuable belongings. Most home insurance policies have a specific amount of money value to protect personal property. There may be limits on some assets, and that may bring about losses to uninformed homeowners.

 

There is also the property value and replacement value that insurers put into consideration. You need to ask your agent to explain the differences between them and to reveal which value is used in compensating you for damages. You may also request for a home inventory checklist to confirm whether you have enough cover for your personal belongings.

 

4. Is my insurance policy for the actual cash value or replacement costs?

The type of home insurance you take may differ from one insurance firm to another. The actual cash value insurance may be preferred in some places. However, it is best to have the insurance pegged at a replacement cost. You need to confirm from your agent whether the policy they are offering is in the ACV or in the replacement cost and what the difference is between them. If you are insured on the replacement cost, ensure a thorough cost analysis is made on your property.

 

5. Are there any discounts?

Finding a low-cost insurance cover that caters for all your needs is often every homeowner's dream. One way to land a bargain is by taking advantage of discounts. Ask your agent for cheap insurance quotes and find out if you can get discounts for installing alarm systems, a gated entry, or even fire sprinklers. You may also bundle your insurance and make renovations at your home to qualify for a discount.

 

Property damage can occur at any time. As such, it is not advisable to leave your home's safety to chance. Ask questions whenever you are taking a homeowners' insurance cover to ensure that you choose a policy that minimizes your home's exposure to big risks.

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