Insure Your Future

3 Questions To Ask When Purchasing Homeowner's Insurance

27 April 2020 by Sue Palmer

Are you buying a home? If so, you will have to purchase home insurance before you can close on the house and take possession of it. Home insurance is required by lenders, and it is a necessity for homeowners. If you don't know a lot about it, though, you might not get enough coverage on your policy. Therefore, it's essential to ask questions when buying a plan, and here are three good questions you should ask the agent. 

1. How Much Coverage Is Necessary for the Structure of Your Home?

Choosing the coverage amount for your structure is one of the most crucial decisions you will make when buying home insurance. The structural coverage refers to the amount of money the insurance company will compensate you with if you lose your entire home to a fire or another covered peril.

Many people believe that getting coverage that is equal to the price they paid for the house is enough, but this is typically not enough. Instead, you should get enough coverage to pay for the costs of rebuilding the home. For example, if you are paying $200,000 for the house, you might think that $200,000 of coverage is plenty. If you calculated the costs to rebuild the house, you might find that it would cost $240,000 to rebuild. Therefore, you should get $240,000 in structural coverage for the property.

2. What Are Riders, and Do You Need Any?

A rider is extra coverage you can buy with a home insurance plan, and its purpose is to cover something that your regular policy doesn't cover. You should ask your agent about this subject to find out if you may have items that are not protected with your plan. Jewelry is a common item people add riders for with their policies.

3. What Discounts Are Available That You May be Eligible For?

Finally, you should ask if there are discounts you might be eligible for. Most agencies offer a lot of discounts, but you might have to ask about these to make sure your agent knows that you might qualify for some.

Homeowner's insurance is a product that you should never go without if you are a homeowner. It is the protection you need for the most valuable asset you own, and it provides peace of mind knowing that you are covered. If you have questions about your policy or need a new plan, call a home insurance provider today.

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