What to ask when you’re looking for home insurance.

If you’ve never purchased home insurance before, you might not know what to expect.  Before you sign off on the first policy that you are offered, make sure you know what you’re getting into.  Here are some important questions to ask your insurance provider.

  • What are my policy options?

Many homeowners are unaware that there are different forms of homeowners insurance.  In fact, there are eight (HO-1 to HO-8) different types of home insurance policies to choose from.  Certain forms of insurance are specifically designed for condos, older homes, and high-value homes.  The remaining forms offer varying amounts of coverage for standard homes.  To ensure that you are choosing the right coverage option to meet your needs, it’s important that you learn about each policy type and the coverage that they offer you.

  • What is the difference between replacement cost and actual cost value coverage?

Replacement cost and actual cash value refer to your personal property coverage options.  Homeowners insurance policies that offer replacement cost coverage will offer compensation up to the item’s original value.  Policies that offer actual cost value coverage will offer compensation for the item’s value adjusted for depreciation.

  • What are the most common coverage exclusions?

All types of insurance have limits, and your homeowners insurance is no different.  Standard home insurance policies will exclude coverage for the damages associated with floods, earthquakes, mud and landslides, pest infestations, and sewer backups.  Keep in mind that every policy is different, so speak to your insurer to learn about your specific exclusions.

These are some of the questions that you should ask when you are shopping for home insurance.  Do you have additional questions regarding your homeowners coverage?  If so, then contact the experts at Scautub Agency in Scotia, New York today.