understanding your insurance policy

understanding your insurance policy

Questions To Ask An Agent When Shopping For New Homeowner's Insurance

by Tuĝba Van Den Heijkant

You are unhappy with your current home insurance provider and are considering jumping ship and working with a new insurance agent. However, before you make the switch, it is critical to ask several questions to ensure you receive the coverage you need at a price you can afford. Before you switch providers, ask home insurance agents these critical questions.

Is It Necessary to Buy Homeowners' Insurance?

One of the most basic and essential questions to ask any insurance agent is if you legally require home insurance on your property. Unlike automobile insurance, which is legally required in many states, no states legally require homeowners to purchase homeowner's insurance. However, it is never advisable not to have any coverage on your home, no matter the appraised value of the property and what is stored inside.

A home is a significant investment, and you want to have at the very least the most basic, affordable home insurance coverage to ensure that if there is damage, you will be protected.

What Is Your Deductible?

Did you know that there is more than one type of deductible on your home insurance policy, and understanding this difference can save you a lot of time, effort, and money? The primary flat dollar deductible is what a homeowner must pay to cover the cost of the majority of property damage and property loss.

However, suppose your home suffers severe damage from a storm, such as a hurricane or a nasty snowstorm. You will be expected to pay a percentage deductible, especially for severe damage. This percentage deductible is based upon the appraised value of your home. For example, if you have a five percent deductible and your home is appraised at $200,000, your deductible will be $10,000.

Make sure that the percentage deductible offered by your new provider is something that you can afford.  

What Will Your New Policy Cover?

Understanding your coverage is essential, especially if you require flood insurance. Ask the new insurance provider if you need updated flood insurance and the best type of policy for your needs and budget.

Is It Difficult to File a Claim?

Finally, if you are ever forced to file a claim, it is essential that you understand the claim's process. Every home insurance provider has its own claims process, and you want to ensure that your new insurance provider's claims process is quick, easy, and straightforward.

If you are purchasing a new home insurance policy from a new provider, ask these critical questions first. 


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understanding your insurance policy

You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.