Questions To Ask Before Buying Homeowners Insurance
Before purchasing homeowners insurance, it’s important to understand exactly what you’re paying for and how well the policy protects you. Holbrook Insurance Center Inc. provides homeowners insurance in Meredith, NH, Hingham, Weymouth, Laconia, Braintree, Ouincy, MA and nearby areas.
- Start by asking what the policy covers and excludes. Standard policies usually cover fire, theft, vandalism, and certain weather events, but floods, earthquakes, and maintenance-related damage are often excluded. Knowing these gaps early helps you decide whether you need additional coverage.
- Next, ask how much dwelling coverage you need. Your policy should cover the full cost to rebuild your home—not its market value. Construction costs can rise, so ask how the insurer calculates replacement cost and whether coverage automatically adjusts over time.
- Another critical question is whether the policy pays replacement cost or actual cash value. Replacement cost covers the expense of replacing damaged items with new ones, while actual cash value factors in depreciation, which can leave you paying more out of pocket.
- You should also ask how personal belongings are covered. Find out the coverage limits and whether there are caps on valuables like jewelry, electronics, or artwork. Ask if you need riders or endorsements for high-value items.
- Understanding liability coverage is equally important. Ask how much liability protection is included and whether it’s enough to protect your assets if someone is injured on your property. Many homeowners choose higher limits or add an umbrella policy for extra security.
- Don’t forget to ask about deductibles. A higher deductible usually lowers your premium, but make sure it’s an amount you can comfortably afford in an emergency.
- Finally, ask how claims are handled. Find out how easy it is to file a claim, how long payouts typically take, and how claims affect future premiums. Also ask about available discounts, such as bundling policies or installing security systems.
- By asking these questions upfront, you can choose a homeowners insurance policy that truly protects your home, belongings, and financial future.
If you need assistance, we’re just a phone call away.
