MONDAY, FEBRUARY 9, 2015
Top 10 Questions To Ask Your Home Insurance Agent
When you buy homeowners insurance, you will likely work with a home insurance agent. This agent will help you decide how much coverage you need and what types. Before you buy a policy, make sure you fully understand exactly what you are getting and what types of protections you will have. Read on for the top 10 questions to ask your home insurance agent to ensure complete financial protection.
- What are my monthly premiums? This is the cost you will pay each month to have the insurance. You will need to make sure that the premiums are affordable for you. It is also usually a good idea to compare premiums from several different companies to make sure you are getting the best deal possible.
- Can I insure other items for a discount? If you have a car, you will need auto insurance anyway. If you can, you should think about grouping those policies together with one insurance carrier in order to get a discount.
- What is my deductible under the policy? The deductible is the amount you are personally require to pay. If, for example, you have a $500 deductible and incur $1000 in damage, you will have to come up with the first $500 and the insurance company will pay the rest. Make sure your deductible is affordable for you, but remember the higher the deductible, the lower the cost of your premiums.
- What policy discounts are available? Most policies will offer a discount if you install smoke detectors or a security system. Find out what discounts you are eligible for and what discounts you may be able to get by doing certain actions.
- Does my policy cover market value or replacement value? Market value means you are paid the market price of your house if the home is completely destroyed. Replacement value means you are paid whatever it costs to replace the house. Since it may cost more to rebuild your exact home than the home is currently worth, market value is usually a better buy.
- Does my policy have limits on the amount it will pay for jewelry or other special items? If you have art, expensive clothes or costly jewelry, your policy may have limits on how much you can recover in the event those items are damaged or stolen. Check your policy limits and if you need more coverage, buy it so you can be fully protected.
- What events are excluded from coverage? Earthquakes are usually not covered in a standard policy. Other natural disasters may not be either. The time to find this out is when you buy the insurance, not after the earthquake hits. If you live in an area prone to such disasters, you may want to consider buying a special earthquake insurance policy to make sure you can rebuild your home if the worst happens.
- What are my upper limits of liability? This is the amount the insurance company will pay in legal bills and damages if you are sued. You want this number to be high, so if someone comes to your home and slips and falls and injures themselves, the insurance company will have to pay the extensive medical bills that injured person sues you for, instead of you having to pay out of pocket.
- Am I protected away from home? Most policies will provide you with coverage if items you own are lost or stolen when you are not at home. Your children may even be protected while they are away at college. Find out so you can understand the full extent of the protections you have.
- How long has your company been in business and how long does it usually take to pay a claim? You want an insurance company that has a strong reputation and that pays claims in a timely manner. Double check on these facts by doing a Better Business Bureau search for your insurance company or by checking with the State Department of Insurance to see if any complaints have ever been filed against the company.
Tolbert Tower Insurance Agency
20 E Airport Rd STE 300
Brownsburg, IN 46112
Posted 10:47 AM
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