What is homeowner’s insurance?
Homeowner’s insurance policies and coverages can vary quite a bit, but most policies have some commonalities that are important. Your policy should protect you from large financial burdens related to damage to your home due to natural causes such as fire, wind, hail damage, and in some cases, theft. If your property is in the flood plain, flood insurance may be required, and usually is a separate cost. Most mortgage companies will require the homeowner to have an insurance policy to protect their investment in the home in case of damage. Talk with a knowledgeable insurance agent or refer to your policy to get specific information as it applies to you.
Questions to ask your insurance provider:
- What are the Policy limits for each specific damage coverage?
- What is my deductible (your out-of-pocket costs) when filing a claim? How does increasing or decreasing my deductible change my premiums?
- What is the rating of the insurance provider you are recommending?
- Does my policy cover valuables such as jewelry, guns, or musical equipment?
- What is the liability protection or coverage if someone gets hurt on my property?
- Does your policy cover temporary housing during a rebuild of a damaged property?
- Will there be a significant discount if I have my auto insurance with your company as well?
- Does my policy cover separate buildings or structures such as barns or boat docks?
- What value are you insuring for my property? my outbuilding?
- Does my policy cover full replacement costs at time of damage or just the stated value of policy?
Other Insurance Coverages to consider:
- Personal Umbrella Liability
- Motorcycles or ATV’s
- Boats or Yachts
- Valuables or Personal Property
Own an Investment Property? – Additional Rental Dwelling Policy Considerations:
- Is my property covered while vacant? for how long while vacant?
- Should I cover only the value of my investment or replacement costs of the property?
- Are there any exclusions of coverage I should be aware of?