When you're shopping for the best home insurance deals, it's important to know what is, and what isn't, covered under a multitude of situations.
Some may believe that home insurance only covers the structure of the home while others believe that it covers more than it actually does.
However, by asking your insurance agent the right questions, you will be able to find the best home insurance to fit your needs and your budget.
To help you reach your goals, here are 5 questions to ask your agent to get the best deal.
1. How much home insurance do I need?
When it comes to home insurance, many people find themselves either overpaying or under insuring their assets.
There are several different factors that can lead to this imbalance but, it is important to ask your agent what their home insurance packages specifically cover and what you may need to have endorsed due to some limitations.
Most home insurance policies should cover:
- The structure of the home
- Your personal possessions in the home
- Any costs associated with temporary lodging during repairs
- Liability to others
However, you may find that you’re not getting the best deal based on your needs. For example, you may find that you’re over-paying if:
- You've included the cost of your land
- You’re insuring items for more than they’re worth or that you no longer own
Also, you may find that you’re under insuring if you’re not accounting for:
- Building code updates
- Future renovations
- Jewelry worth more than $1,000-$2,000
However, once you can find the happy medium between your coverage and how much your assets are worth, then you will be able to find the most comprehensive coverage for your money.
2. When should I report home improvements so they’re included in my coverage?
One way to increase the value of your home is through renovations. When it comes to making those improvements, you want to make sure those costs are covered if anything were to happen to your home.
To best protect your investment, you should report any renovations above $5,000. That way, your investment into your home will not be lost or unaccounted for.
3. Can I reduce my rate due to value depreciation?
Like many cars, some of your possessions will depreciate due to time and their current condition. Therefore, if you’re paying the same rate for a depreciating value, you will begin to lose money.
In these cases, it could be advantageous to notify your agent so that your rate can be adjusted. You can also consider adding a floater or an endorsement at a premium to cover expensive items individually.
4. Can I bundle another policy with my home insurance to reduce my rate?
Most insurance companies that provide more than just home insurance offer discounts through bundling. This is a great way to save money when additional insurance policies are already necessary.
Other common bundles could include:
5. Do I qualify for any additional discounts?
Aside from bundling your insurance policies, you may be eligible for additional discounts.
For instance, once you retire, insurance companies predict that you will stay home more often and those homes are less likely to be burglarized. Therefore, you may be entitled to a discount of up to 10%.
Other potential discounts can be applied when a new roof has been installed or a security system have been added to the home.