Find the right homeowners insurance policy for your needs by asking the right questions.
Being an informed consumer not only means reading through your homeowners insurance policy closely but also asking experts that constitutes the right type, amount, and coverage that you need for your home. Your home is likely your largest and most valuable asset, so it’s only natural to want to secure reliable coverage. Before you purchase or switch your home insurance policy, be sure to ask these questions.
Is my home insured at actual cash value or replacement cost?
Ideally, you should aim to secure replacement cost coverage. The main difference between actual cash value and replacement cost is that a replacement cost policy will make you whole after a claim with nothing more than your deductible out of pocket. Actual cash value factors depreciation into the amount you receive for a claim. This means that, in addition to your deductible, you could be out hundreds to thousands of dollars to repair your home to the state it was in before the damage. A replacement cost policy doesn’t factor depreciation into the equation.
Should I buy a separate flood and/or earthquake insurance policy?
Despite the number of floods and earthquakes that continue to rock the nation, very few homeowners have coverage for either type of disaster. Standard home insurance coverage typically excludes flood and earthquake damage, so it’s important to consider supplementing your insurance policy to protect your property from these mass-destruction events.
Do I qualify for any discounts?
If you don’t ask, you don’t know! If you have smoke detectors, burglar alarms, and deadbolt locks in your home, you can often get a premium rate discount. Sophisticated sprinkler systems and alarms that ring at monitoring stations can often reduce your homeowners insurance premium, too. Ask your agent if you are entitled to any discounts.
Choosing the right homeowners insurance doesn’t have to be difficult. Hoffman Brown Company can help you find quality coverage. Get in touch today.
