Can You Answer These Questions About Your Homeowners Policy?

Buying a home can be a daunting prospect. Homeowners insurance should provide some peace of mind, but navigating different policies and coverage options can be overwhelming. There are several questions homeowners can ask their insurance agent to gain clarity and ensure they have the best coverage for their home.

Does Your Policy Provide Enough Coverage to Rebuild Your Home from Scratch?

Homeowners should make themselves aware of how much it would cost to replace their home. Once they have a rough estimate, they can invest in coverage equal to that number. Homeowners should try to work with local agents who are familiar with construction and material costs to provide the most accurate estimate. This number should include any upgrades performed on the house as remodels can increase the house’s value. What was once enough coverage may no longer be capable of replacing a renovated home.

Do You Know What Your Policy Does Not Cover?

Many homeowners focus so much on what their policy provides them that they may not consider what it does not cover. Some items, such as jewelry or expensive artwork, require a different kind of coverage. In addition, many homeowners insurance policies do not cover certain natural disasters such as floods and earthquakes. If a homeowner lives in an area prone to these disasters, they will need to invest in separate coverage.

Do You Know What Discounts are Available to You?

Many homeowners forget to ask if they are eligible for discounts. Many insurance companies offer discounts for having smart home devices, a home security system, or if the individual insures other items through the same company such as their car.

Other questions individuals should ask their insurance agent include:

  • Can I afford my deductible?
  • What claims are most common to my area and do I have enough coverage for them?
  • Do I need additional coverage if I rent out part of my home?

Asking the above questions can help ensure financial security for homeowners in the event that they need to make a claim. To learn more about homeowners insurance, contact the experts at The Reilly Company.