You want to get the most value possible from your home insurance, but this can be a tricky thing to pin down. Since there are so many different companies in Florida, shopping around can take time. However, there are several questions you can ask the home insurance entities when you start shopping to ensure you’re getting the best value possible with your coverage. We’ll give you an easy list to follow below.
1. What does the standard policy coverage entail?
There are generally four main types of coverage under the standard policy. Dwelling coverage will encompass your home’s physical structure while personal property coverage pays for the personal belongings inside your home. Liability coverage protects you if someone sustains a bodily injury on your property, and additional expenses coverage includes any living expenses you may incur if you get displaced from your home.
Some companies do offer other coverage that you can add to these four main components. For example, maybe you have structures on your land as a pole or storage shed. You can usually add additional coverage for these structures. If you have underground utility lines, you could add coverage for them too.
2. What types of damage does your policy cover?
Many people think that they have coverage no matter how the damage to their homes occurs. However, many standard policies won’t cover flood damage. Many don’t include other natural disasters. If you live in or around a flood zone, it’s good to see if your home insurance company will add flood coverage. You may have overflow water damage already covered, but make sure you specifically ask about flood insurance.
3. What is the best rate for a deductible?
Ask any home insurance company you look at what their deductible tiers are. You can ask the agent you speak to what the best rate for your deductible is. The deductible is the amount of money you pay out of your own pocket before your insurance company will cover the repair costs. If you have a $1,500 deductible, you’ll pay this much before your company pays.
Setting a higher deductible can cause your annual premiums to go down. However, you’ll pay more upfront if you file a claim. Ideally, you’ll have this amount put away, so you don’t have trouble meeting your deductible if you need it.
4. How quick is the claims process?
Anyone who has to file a claim should have a very quick process, and your insurance company should be available 24 hours a day. Your insurance company won’t do much for you if you can’t reach them when you need them most. So, ask about their after-hours support. You can also ask them to estimate how long it takes them to process claims when you submit them. On average, many home insurance companies set a 30-day deadline. They can pay sooner than this, though.
5. Are there ways to save on your home insurance?
There are many ways you can potentially save on your insurance policy, and your company should offer at least one or two discounts of deductibles if you meet the criteria. Minimizing risk is an easy one. If you live in an area that is prone to robberies or break-ins, you could get a discount by installing a home security system or cameras. Installing sprinkler systems, smoke detectors, or carbon monoxide detectors can also help minimize your risk.
6. What are the policy limits and are they high enough for your home?
Almost every home insurance policy will come with a policy limit, and it won’t do you much good if this limit is lower than you need for your home. If you have a $450,000 home, this policy limit will be the replacement value of your home or $450,000. The other limits are usually related to your dwelling costs. If you have personal property coverage, this usually caps at 50% of your dwelling coverage limit. In this case, it would be $225,000.
7. Does the company offer an umbrella policy?
Ask if your insurance company offers umbrella policies and whether or not you’ll need one. This is an extra layer of protection that can shield you if you have a large insurance claim. For example, say a neighbor got hurt on your property and decided to sue you. The legal fees go over the liability limits on the policy. If this happens, the umbrella policy will kick in and help cover the costs.
8. How do you get in touch with your policyholder?
In the digital age, you should have several ways to get in touch with your insurance provider if you have a claim, questions, or concerns. Since almost everyone has a cell phone with them, see if the company offers an app. You can see your coverage, check your claims status, file a claim, and more. Ask about phone numbers, websites, and hotlines too.
9. What types of insurance policies does the company offer?
There are generally two broad types of home insurance policies you can get on your home. A replacement policy will cover the replacement value of your home without accounting for depreciation. You’ll repair or rebuild your home to the original value. An actual cash value policy will pay the replacement cost of your home minus any depreciation. Check and see which one makes more sense for you, and ask your agent which policies they offer.
Allow Nsure to Help Pick Out Your Home Insurance Policy
Figuring out which insurance policy is best for you while giving you the best value can be confusing and time-consuming. This is true even with the questions we laid out for you to ask. Nsure can help by comparing over 40 different top-rated home insurance companies all in one place. We’ll give you quotes, let you compare policies, and you can even buy your policy right from our website. Visit us today and start comparing quotes.