Summary: Having the right questions to ask your home insurance agent can help you gain peace of mind and better prepare for risks. Every home is different but home insurance questions should revolve around saving money and protecting your property. Be sure to stay in communication with your agent even after purchasing coverage to ensure you are prepared for possible perils as risks evolve over time. Estimated Read Time: 5 mins
Whether you’re a seasoned homeowner or it’s your first time, shopping for home insurance can be intimidating. Everyone’s looking to stay covered and spend less doing so, but if you don’t ask the right insurance questions, you may find yourself facing issues down the line. Below, we’re looking at five questions to ask your home insurance agent to avoid unnecessary surprises.
Five Home Insurance Questions To Ask Your Agent
Knowing the right questions to ask home insurance agents is important. This allows you to understand the process, and your policy better, and manage your risks more effectively. Here are five questions to ask your home insurance agent to make sure you’re better protected.
1. Is Water Damage From Sewer, Drain, or Sump Pump Backup, Covered?
Water damage is a tricky issue when it comes to your home insurance policy. There are many occasions in which you’re covered and likewise, many losses that are not.
Depending on your policy, you may have protection from sewer or sump pump backup damage. With that being said, you’ll need to check the type of home insurance policy you have. For many with standard coverage, an endorsement or rider will be necessary.
This is typically an expensive loss as all water damage tends to be, however, the coverage to protect against such perils is also typically very affordable. Double-check with your homeowners insurance broker or agent that you’re covered.
2. Am I Eligible for Any Home Insurance Discounts?
One of the most important questions to ask when buying home insurance is about the available discounts that can help you save on premiums. This will vary by carrier and each individual may qualify for different discounts. Here are a few common examples:
● Bundling your car insurance with your home policy can protect more for less.
● Homeowners can get discounts for having safety features such as security systems, alarms, smoke alarms, sprinklers, and more.
● New homes can be cheaper to rebuild and are less likely to have issues. Even if you’ve recently had major renovations, discounts may be available. Additionally, new roof discounts are popular options.
● If you haven’t submitted many or any claims, you’ll likely qualify for a discount.
● There are several industry-specific discounts. Depending on your occupation or if you’re part of an organization that has agreements with certain carriers, you could save as a result.
There are several home insurance FAQs out there, but if you want to save money each month, asking about discounts is a great place to start.
3. How Much Is Flood Insurance and Do I Need It?
Checking flood maps is a great way to better understand the risk of flooding near your home. However, 1 in 4 claims for flood damage come from homes that are outside of flood zones making the protection an important consideration for all homeowners.
There are many evolving factors ranging from weather patterns to construction and more that contribute to the increased risk of flooding in some areas.
Questions to ask about homeowners insurance should also include additional coverages like flood insurance as home policies won’t cover this type of water damage.
You can enroll in coverage from the government but if you want to shop and compare, private carriers are also available. Working with a broker can help you explore more options and stay prepared against this peril.
4. Can You Explain My Policy’s Deductibles?
Homeowners insurance questions involving your policy’s deductible are imperative. Not only will you want to understand how much you’ll need to pay when filing a claim but how your deductible affects your premium.
In general, higher deductibles mean lower premiums. If you want to save money each month, having a higher deductible can be advantageous. However, you need to be capable of paying a larger upfront cost in the event you have a claim.
There are also different types of deductibles you’ll want to be aware of. For example, there are standard home insurance deductibles and percentage home insurance deductibles to discuss.
You’ll also want to be aware of disaster home insurance deductibles for additional coverage, such as earthquake or flood insurance.
5. How Much Coverage Do I Have in Case of a Major or Total Loss?
Recurring questions to ask your insurance agent will revolve around the maximum coverage your policy offers. This is important because after a major or total loss if you don’t make adjustments, you may find that you don’t have enough coverage.
In many cases, recovering after a major loss means touching many different types of claims. Here are a few considerations to remember when discussing with your insurance agent:
● Ask questions about extreme scenarios. What is the timeline and coverage amount if your home is destroyed after a fire? How does your policy help in the event of a flood? Etc.
● Damage to your home is one thing, but make sure you have enough coverage for personal property as well.
● The other structures on your property are protected by standard home insurance coverage. Be sure to ask about extreme scenarios that might also affect them as well.
● Different reimbursement types can affect your claims experience. Be sure to ask your agent how your specific policy works.
● Following a major loss, you’re going to need to find housing and meals. Thankfully, your policy will help with this need, however, you’ll want to ask how much coverage you are provided, considering limits apply.
Does Asking Questions to My Insurance Agent Affect Home Insurance?
Speaking with your insurance agent through inquiries generally does not have a direct impact on your home insurance policy. It’s advisable to seek clarification on policy terms, coverage options, and premiums to ensure understanding.
Effective communication with your agent should be open and constructive, facilitating informed decisions about your coverage. Remember, the questions to ask a home insurance agent will vary by homeowner and should be specific to your needs and risks.
Sources:
1. Lower your home insurance cost by asking for discounts, TDI. Accessed February 2024.
https://www.tdi.texas.gov/tips/lower-your-home-insurance-by-asking-for-discounts.html