A colleague recently discovered that her home insurance policy did not cover a disaster as she thought it would. Don’t wait until a catastrophe puts you out of your home to re-evaluate your insurance. Question everything!
Starter Questions for your Agent:
- What is included in my homeowner’s policy (structural, contents, liability coverage, additional living expenses)? Can I raise the amount of coverage for certain areas in my policy? How often?
- What is excluded from my policy? What areas have limited coverage?
- What would it cost to rebuild my home? What would it cost to replace the items in my home?
- Do I need a separate policy to include exterior structures (garages, sheds, gazebos, pools, etc.)?
- What disasters or ‘perils’ am I insured for (theft, fire, tornado, vandalism, etc.)?
- Do I need flood, earthquake or an umbrella policy?
- In the event of a flood what would be covered? Do I need separate insurance for coverage of possessions?
- Am I covered in events of water damage (i.e. frozen pipes, burst pipes, leaky appliances, sewer back-up, rainwater, seepage and leaks, flash flooding)? For which events am I covered or not covered? What is your definition of ‘flooding’, meaning I’m not covered?
- Do I need sewer back up insurance?
- Does my policy include a separate deductible for risks like hurricane or hail?
- Will my policy cover repairs and/or replacement of the appliances in my home?
- Am I covered for liability? Will guests’ injuries and medical expenses be covered if injured on my property?
- If my home is under remodeling or construction do I need extra riders or coverage (liability, theft, damage, etc.)?
- Do I need separate insurance for animals and their possessions in my home?
- Do I need separate insurance for my home-based business (liability, structural, possessions)? What types are available?
- Is this attached or separate from my homeowner’s insurance?
- Do you offer any protection against identity theft?
- What kind of riders or floaters do you offer? May I see a list of all types of riders/floaters you have available? Do I need separate riders for valuable items or house items such as:_____________?