Do you need a homeowner's insurance policy? If so, it might be because you are buying a house or tired of paying too much for your current coverage. In any case, you might want to ask the insurance company a few questions before choosing a policy. Here are four vital questions to consider asking as you search for a new home insurance plan.
1. How Much Structural Coverage Do You Recommend?
Asking an insurance agent how much structural coverage you need is a smart way to get the right amount. In most cases, insurance agents recommend choosing an amount that covers the cost to replace your home. You might not owe this much money on your house, and it might not be the price you paid for it. But, getting enough coverage to replace the house is the smart amount to choose. By choosing this amount, you will have plenty of money to rebuild your house or buy a new one if you lost the entire thing.
2. How Do You Determine the Personal Property Coverage?
The second question to ask is about the personal property coverage to get. This amount covers all the things you own inside your home. Most agents recommend calculating this by using a percentage of the structural coverage. You might want to use 40% or 50%; it is up to you.
3. What Riders Should You Add?
Next, you can ask about riders. Adding riders provides extra coverage for things that your general policy does not cover. For example, if you have expensive assets, such as jewelry, you might need riders to cover their full value. You can also add riders for perils, such as sewer problems. Your agent can explain your options and help you choose the right ones.
4. What Discounts Do You Qualify For?
Finally, you may want to ask if you qualify for any discounts. For example, if your house is a gas-free home, you might get a discount. You might qualify for discounts if you have a new roof or deadbolts on your doors. You can talk to your agent about all the potential discounts to determine which ones you might be eligible for with your new policy.
You may want to ask these questions when buying home insurance, and you might also have others. When you are ready to buy a plan or ask for a quote, you can gather your list of questions and contact an insurance agent.