Five Questions to Ask Your Homeowners Insurance Agent

Buying home insurance isn't something that you do every day, or even every year. So it's easy to forget what coverage includes and all the lingo that surrounds the industry.
Auto and home insurance

Before you buy your next policy, you need to ask your insurance agent these questions. You want to understand your policy before making a selection. Here are four questions you must ask your agent:

1. Does it include earthquake and flood coverage? Most homeowners policies do not include this in their basic coverage. Check to see if your home is in an area that's prone to earthquakes, flooding or other natural disasters. If there's a high chance of needing coverage, see how you can get it. Ask about a rider to give you the extra protection should an event occur.

2. Is my home covered for full replacement costs? There are two phrases in the industry which seem synonymous at first glance, but in reality are far from it. Replacement value and replacement cost. Though it's usually a little more expensive, replacement cost covers the cost to rebuild. Replacement value only pays out the amount of the home's value at the time of purchase. If you need to make a claim, you might not realize at how little you'll get to rebuild.

3. How much is the deductible on my home insurance policy? Like most insurance, the higher the deductible, the lower the payment. Choose a $2000 deductible if you have a healthy emergency fund. Then build your savings up with the difference. Know how much risk you feel comfortable taking on and choose a plan that fits your budget and risk tolerance level.

4. Will my expensive jewelry and antique toy collection have coverage? A single antique or your diamond ring are likely covered in your basic policy. But, if you have any kind of valuable collection, it's most likely not included. This may be simply because the policy's coverage limits cannot extend to the collection's value. Check with your insurance agent to see what rider options are available. A rider will provide coverage if your expensive items get stolen or damaged.

A good home insurance agent will explain the policy completely. They shouldn't mind answering extra questions. It's easy to get confused when dealing with all the insurance jargon. You should be confident that you understand the policy and that you know it's the best choice for your needs.

We've got you covered. Saunders Insurance Agency can help you get a fast, free home insurance quote when you need it. Call us today at 740-446-0404.

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