Top 7 Questions To Ask About Your Current Homeowners Insurance Policy

Reviewing your homeowner’s insurance policy must be done yearly to ensure you receive the best rates and proper coverage. Changes in your life circumstances must be addressed with the insurance provider to ensure your home and belongings are covered adequately. What does your current policy protect? Here are Just Protect Insurance’s Top 10 Questions to ask when you review your homeowner’s insurance policy.

  1. Does my policy cover replacement cost or actual cash value? What happens if your home is damaged? If you pay the out-of-pocket deductible, will it cover replacement or repairs? Actual cash value policies will include depreciation into the claim payout. What cash value means is you are required to pay the deductible in addition to some cash to restore the home to today’s market standards. Review your premium often to make sure it covers your home with today’s value, so you aren’t left paying more money if the house is damaged.

  2. Are my luxury items covered? If you own fine arts, diamonds, and other luxury items, they may not be replaced if they are not covered in your policy. Contact your homeowner’s insurance to find out if there are policy limits for luxury items.

  3. What happens if someone is injured in my home or on my property? If an individual is injured in your home or on your property and you are sued, your homeowner’s insurance policy will provide legal coverage and medical expenses. Review your policy’s liability coverage section to determine what coverage limits your plan has and if you have adequate coverage for accidents and injuries.

  4. Can I reduce my monthly premium? If you choose to reduce your premium, it can reduce the quality of coverage. What is the highest deductible you can afford, and what does it cover. Always compare quotes with multiple homeowners insurance companies to make sure you are getting the right coverage for your needs. Several homeowners insurance providers will offer discounts on monthly premiums for the following:

    1. Alarm systems

    2. Smoke detectors

    3. Deadbolt locks

    4. Sprinkler system for fires

Bundling your auto and home insurance can help to cut down your monthly premiums or deductible expenses.

  1. What is covered? Will my home be repaired after an earthquake? What about flooding? Review your homeowner’s insurance policy to check for what your plan covers. A standard policy typically does not provide coverage for earthquakes and floods.

  2. Business use? If you work from home or run a business out of your home, you need to look at what your homeowner’s insurance will cover. Computers and laptops usually are covered, but other things like daycare services are not. Liability coverage is usually the only protection you have, and it will need to be reviewed to make sure you have proper coverage to run a business out of your home.

  3. Do newer, modern homes cost less than older homes? Insuring a newer or modern home costs less due to advanced safety features and construction techniques. Older homes can reduce costs if you bring the home up to current standards and building codes. Look into renovation options that can reduce your premium amount.

We recommend contacting at least three companies to compare homeowners insurance policy options. Mortgage lenders require homeowners insurance, and some may require additional coverage options like earthquake and flood insurance. Always shop for value, not for the price! Use our easy comparison tool to help you find a homeowner’s insurance policy that fits your needs.