Questions to Ask Your Home Insurance Agent

Homeowners Insurance Questions to Ask

Does the policy cover the actual cash value or the replacement cost?

Will you be covered if someone is injured while on your property?

Questions to Ask Home Insurance Agent About Your Coverage

Will you be covered from water damage?

Does homeowners insurance cover tree damage?

Will homeowners insurance cover pests like termites and bed bugs?

Is mold removal covered under homeowners insurance?

Will insurance cover roof damage or replacement?

Additional questions to ask your insurance agent

Will your homeowners’ insurance policy increase after you make a claim?

Do you have to pay extra for a homeowners insurance policy if you have a dog?

Homeowners Insurance Frequently Asked Questions (FAQs)

What questions should I ask about home insurance?

What questions should I ask my insurance agent?

What should you not say to an insurance agent?

What information do you need for homeowners insurance?

What to look for when shopping for home insurance?

Why is homeowners insurance important?

Homeowners’ insurance policies are what protect your biggest asset for many of life’s catastrophes. While the weather is beyond your control, unless you know the right questions to ask insurance broker, you may find yourself in financial trouble if a flood has severely damaged your home. The team at Richr knows the importance of protecting your home and wants buyers to be informed before it’s too late to speak up about your policy. This is a list of the most important questions to ask about insurance to your house insurance agent before move-in day.

Homeowners Insurance Questions to Ask

From your coverage, to exterior structures, to the potential payout for rebuilds, and more, be prepared with a long list of questions to ask an insurance agent while shopping for a home policy. While the HO-3 policies are the most common type for a wide range of risks, your belongings and additional coverage options should be considered when shopping for home insurance. For example, you may need to purchase a separate policy to cover any flood damage, depending on your location and your insurer. Here are some essential questions to ask when buying homeowners insurance.

Does the policy cover the actual cash value or the replacement cost?

You need to ask this question for insurance agent before agreeing to your new policy as it can make a significant difference to what you’ll be paid if your home is damaged. If you have a replacement cost policy, the only thing you’ll need to pay is the deductible if something occurs. A cash value policy factors in depreciation during the claim process, which means you may be out of pocket to restore your belongings or home rebuild to the current market value.

Will you be covered if someone is injured while on your property?

You may have heard claims like this before – a neighbor slipping and falling on your porch or a mail delivery person taking a tumble on the driveway. A common homeowners insurance question is – what is your coverage if someone gets hurt on your property? Typically, the maximum amount an insurance company will pay is legal bills and damages if you get sued. You should find out if your policy also covers medical bills and what type of liability insurance you should have to be safe.

Questions to Ask Home Insurance Agent About Your Coverage

While many homeowners believe the cheapest policy is best or that they’ll be covered for any natural disasters, you should find out if your policy includes flood damage, rain damage or other inconveniences such as sinkholes. Some of the typical questions to ask insurance company regarding coverage limits include the following.

Will you be covered from water damage?

You have some specific questions to ask an insurance broker regarding the definition of water damage, how it could happen and if you’ll be covered. For example, if a storm damages your siding, exterior, or roof, you’re likely going to be covered under your policy. However, if your roof has been leaking for a while, this falls under the maintenance issue, which can be argued as preventable. If the damage is considered accidentally and sudden, for example, a burst pipe, you can still be covered under water damage if it’s included in your policy. In the same instance, a leaky pipe that damages your home over time may be considered a maintenance issue risk and will not be covered.

Does homeowners insurance cover tree damage?

Most policies will cover this unfortunate incident if a tree falls onto your home and causes damage. However, some policies don’t have complete coverage on this. That’s why it’s essential to ask this home insurance question upfront. Most policies won’t pay for this service if a tree falls without damaging the home and you need it removed. Even if you’ve been proactive and notified your home insurance agent about a tree that is putting your home at risk, they won’t pay to have it removed – only if it falls and damages the house. Some policies can be upgraded to include tree removal, which is why it’s important to ask these questions upfront.

Will homeowners insurance cover pests like termites and bed bugs?

Many insurers consider pests like termites and bed bugs a maintenance issue and, therefore, are not covered under a home insurance policy.

Is mold removal covered under homeowners insurance?

Mold removal is a tricky question under home insurance policies – as long as it was the result of a covered claim, you should be protected. For example, if your pipes burst and flooded the basement with water, therefore causing mold to develop, your policy may help remove the mold and fix the damages. However, if a typical maintenance issue is a reason, you can expect to pay out of pocket.

Will insurance cover roof damage or replacement?

Your home insurance policy won’t cover this if your roof has shingles falling, is growing mossy, or simply needs replacement due to age. It will cover any damage that happened due to the weight of snow, falling trees, hail, and other weather events. It’s important to ask your insurance agent for details about how your roof coverage works. Some may even pay you a smaller amount due to the age of your roof instead of fully covering any accidental damages.

Additional questions to ask your insurance agent

Will your homeowners’ insurance policy increase after you make a claim?

Asking this question ahead of time will have you prepared when making a claim of potential increases to your coverage cost. These increases don’t always happen immediately as policies are 12-month contracts, so your rate stays the same throughout the remainder of the policy term. However, when you’re up for renewal, your rate may rise. It may be worth considering covering the cost yourself for more minor claims if it’s not an expensive repair.

Do you have to pay extra for a homeowners insurance policy if you have a dog?

Believe it or not, dog bites can be covered by your home insurance liability coverage, which is a relief for most owners. The medical bills can quickly add the claim up to approximately $40,000. Ask your insurance agent if you’ll be covered in legal defence and claim payouts under your coverage for dog bites. If you have to pay extra for this coverage will depend on your insurer, but it’s likely under the umbrella of personal liability. Keep in mind, some breeds of dogs may be more challenging to accept under this coverage, such as Pit Bulls or Rottweilers.

Homeowners Insurance Frequently Asked Questions (FAQs)

What questions should I ask about home insurance?

There are plenty of homeowners insurance questions that you should be asking before purchasing a policy which includes both the coverage details, financial commitment, policy limit, and if you’ll need to purchase additional coverage to protect your personal belongings. The ten important questions you should ask insurance are:

1. Does my policy cover the cash value or the replacement cost?
2. Are my jewelry and expensive accessories covered?
3. Am I covered for both fire, flood and any other kind of natural disaster?
4. Am I covered if someone is injured in my home?
5. How much is the deductible of the policy?
6. Do I get coverage if I’m working from home?
7. Is my shed covered?
8. Is my fence covered?
9. What type of coverage is included for roof damage?
10. Is there any additional coverage I should consider that isn’t included in the standard policy?

What questions should I ask my insurance agent?

While a homeowners agent will begin to answer the common insurance questions to ask, come prepared with additional questions to ask about homeowners insurance as there can be crucial differences that could cost more out of pocket if you aren’t aware of your limits. Some of the questions to ask insurance agent are:

1. Are there any coverage limitations?
2. Do you have any discounts available?
3. What is the replacement cost of my contents and to rebuild my home in the event of any loss?
4. What kind of liability coverage do I have, and do you recommend any additional?
5. What can I expect during the claims process?

What should you not say to an insurance agent?

Overall, you should be honest during any homeowners insurance claims questions process from any homeowners insurance agent. While being truthful about your situation is essential, you don’t need to offer additional information they aren’t asking. The critical thing to note is not to loosely use the term “flood,” especially if it’s not part of your coverage. If the insurance agent questions you about the situation, don’t try and “assume” or fill in the blanks on what you think may have happened. A simple “I don’t know” will suffice.

What information do you need for homeowners insurance?

When you’re picking home insurance, you want to find the best coverage for the lowest price. You’ll be quick to find out that the interview process to obtain a quote can be incredibly lengthy, asking you a plethora of questions about the home and your claims history. To make this easier and have accurate information at hand, these are the homeowners insurance coverage questions you may be asked.

1. Your address (obviously!)
2. Renovation history.
3. The year the home was built as well as roofing, plumbing, heating and electrical details.
4. Distance to fire department, police station and fire hydrants.
5. Information about the trees on your property and their proximity to the home.
6. Pool safety information if applicable.
7. Your personal claims history for previous home insurance. This can include the reasons for past claims, amounts that were paid out, where those claims occurred (past addresses) and the frequency of your claims.
8. Additional structures on the property such as a shed, gazebo, fence, etc.
9. Building materials of the home.
10. Home occupant information such as roommates, partners, family, or pets.
11. Your personal belongings details and amount you’ll need to be covered for replacing them.

What to look for when shopping for home insurance?

When you’re shopping for home insurance, you should have the opportunity to speak to an agent with questions to ask an insurance company about their policies. From there, you need to talk with the property insurance agent to find out:

• What your coverage details are and any recommended extras you should consider adding to your policy.
• The deductible you will have to pay when making a claim.
• The cost of your policy.
• The claims process information.

Why is homeowners insurance important?

Whether you’re working with an at home insurance agent over the phone or purchasing a policy in person, it’s not required by law. Still, it’s an important investment to protect your financial wealth and personal security. Once you answer the home insurance questions, you’ll quickly realize the potential scenarios that may arise you’ll want to be covered for and the amount you’ll have to pay out of pocket if damage strikes without this coverage.

A study in the US by the Insurance Information Insitute found that the home insurance annual premium exceeds $1,200 per year on average. However, Florida residents could find a much higher cost of $2,000 as of 2017 due to their higher risk of storms. With this in mind, Richr wanted to make homeownership more attainable by offering up to 2% cashback on any home purchase that can help when budgeting for home insurance costs. Elevate your wealth with Richr on your next home purchase.