Buying a home is not only a huge investment, it’s complex. Our goal at Aksarben Insurance is to be trusted partners when it comes to your insurance needs, and we want to make getting a homeowners insurance policy one of the easiest things you do in the home buying process. Whether it’s your first home or your third, you should always understand what you’re getting in your insurance policy.
Here’s five questions to ask your agent when shopping for homeowners insurance.
- Am I covered no matter how my home gets damaged?
Many people are surprised to learn that the standard homeowners insurance policy doesn’t provide umbrella coverage. That means, if your home is damaged by a flood, you’re not covered unless you purchased flood insurance. Other natural disasters can be the same. Make sure you ask your agent what type of damage is covered and if purchasing additional coverage is best for you.
- Does my policy cover actual cash value or replacement cost?
Under a replacement cost policy, the out-of pocket deductible is all you need to pay to repair your home if it is damaged. An actual cash value policy will factor depreciation into the claim payout. This means you might have to pay both the deductible and some additional cash to restore it in today’s market. It’s typically worth the additional premium cost to ensure your home can be restored to its former beauty with only your deductible as your payout. Generally, home repair or replacement is covered at replacement cost while personal property such as your furniture, appliances and clothing are replaced at actual cash value. It’s often possible to upgrade your policy to also have your personal property insured at replacement value.
- Will it cost less to insure a newer home than an older home?
Because modern construction usually means improved safety features, newer construction homes come with a lower insurance rate than older ones. But if you own an older home, making improvements and bringing up to current building codes or doing other renovations can help to lower your premiums.
- What can I expect when I have to make a claim?
No one hopes to have to make a claim on their homeowners insurance, but that’s what it’s there for. An insurance provider should be there for their customers 24/7. Ask your agent for the details when filing a claim and how you will be able to access a representative.
- Am I covered if someone is injured in my home?
Homeowners insurance not only provides coverage to damage to your home, but it also protects you financially if someone gets hurt in your home or on your property. If a visitor slips and falls in your home, you want to make sure you have the right coverage to cover medical and legal bills. The maximum amount the insurance company will pay in legal bills and damages if you are sued is shown in the liability coverage section of your policy. Your agent can help you determine what amount is right for you to purchase.
At Aksarben Insurance, we want to Protect Your Good Life. We are experienced insurance professionals that work with dozens of the top insurance providers to find you the right policy for your needs. And when it comes to your home, it’s important to protect this large investment. If you’re shopping for homeowners insurance, give us a call today and speak with one of our local agents and representatives.