6 Questions to Ask a Homeowner’s Insurance Agent
Homeowner’s insurance is essential to have if you plan on owning a home. Not only because most lenders will not give you a mortgage if you don’t, but also because a lot of catastrophe can suddenly befall a home. You want to be prepared for what might happen, and homeowner’s insurance gives you a financial safeguard in many circumstances. If you are about to purchase a home any time in the near future, you should know what questions to ask your insurance agent – even if the question seems obvious.
Below are 6 questions that should be asked of any insurance agent, as well as a simple answer to help you get started.
What is Homeowner’s Insurance, Anyway?
Homeowner’s insurance is a type of insurance policy that protects the property and, oftentimes, the items located inside.
What Does Homeowner’s Insurance Cover?
This type of insurance policy covers a certain set of circumstances that could damage your home and belongings. Most policies will cover:
- Fire and smoke damage
- Wind damage
- Hail
- Lightening
- Theft and vandalism
You will want to discuss with your insurance agent to see if other circumstances can be covered by your individual policy.
What Doesn’t Homeowner’s Insurance Cover?
That’s right – homeowner’s insurance isn’t a universal protection against everything that could befall your home. It is unlikely that your policy will cover other, less common calamities like:
- Earthquakes
- Flooding
- Power failure
- Acts of war
- Intentional property damage (such as in the case of attempted insurance fraud)
Can I Get Coverage for a Natural Disaster?
You’ve noticed that flooding and earthquakes are not considered a standard part of homeowner’s insurance coverage. Fortunately, you can purchase this coverage separately. If you live in an area more vulnerable to floods or earthquakes, it may even be mandatory.
Is it Required by Law to Have Homeowner’s Insurance?
Nope! But that doesn’t mean that you can forego purchasing a homeowner’s insurance policy. If you are financing a mortgage, as most homeowners do, the lender will force you to purchase homeowner’s insurance. Otherwise, they will not work with you. Lenders want to be certain that you are serious about protecting this expensive and important investment.
Will Homeowner’s Insurance Replace my Destroyed Home?
The answer to this question depends entirely on your level of coverage. If you have insurance coverage for, let’s say, $400,000, then your policy will only pay out up to that amount to replace or repair your home.
When you are on the verge of making the life-changing purchase of a home, you need to take homeowner’s insurance into consideration. When you work order propranolol with a reputable insurance provider, they should be glad to answer all of these questions and any others that you have.