When you buy a home, there’s a lot to think about. One of the most important steps? Picking the right homeowners insurance policy. It’s not just a box to check—it’s your safety net if the unexpected happens. From protecting your home to providing peace of mind, getting the right coverage matters.
To make things easier, we’ve crafted this straightforward guide with key questions to ask and important features to look for.
Questions to Ask About Homeowners Insurance
1. What’s Covered?
Understanding what’s covered is crucial. Does the policy include coverage for dwelling, personal property, liability, and additional living expenses? On the flip side, are certain events like floods or earthquakes excluded? Knowing this up front can save you from surprises later.
2. Is It Replacement Cost or Actual Cash Value?
Make sure you understand how your home will be valued if you need to make a claim. Replacement cost covers the price to rebuild your home at today’s costs, while actual cash value factors in depreciation. For loan approvals and peace of mind, 100% replacement cost is often the better choice.
3. What’s the Deductible?
Your deductible is the amount you’ll pay out of pocket before your insurance kicks in. Some policies may even have separate deductibles for events like windstorms or hurricanes. Be sure to ask for the details.
4. Are Discounts Available?
Who doesn’t love saving money? Many providers offer discounts for bundling policies (like home and auto) or having safety features like a new roof or security system.
5. What’s the Claims Process Like?
Find out how claims will be handled. Is there a 24/7 hotline? How long does it take to process claims? Quick and reliable service during a stressful time can make a world of difference.
6. Can Premiums Change Over Time?
Your premiums might not stay the same year after year. Ask about increases due to claims or market fluctuations. It’s always better to know this upfront.
7. Will I Have a Dedicated Agent?
Having a point of contact you can rely on is invaluable. Check if you’ll be working with a dedicated agent or just a general customer service team.
Coverage Features to Pay Extra Attention To
Disaster Coverage
Natural disasters like floods, earthquakes, and hail often require separate policies or add-ons. If you live in an area where these are common, make sure your policy fully protects you.
Personal Property Coverage
Your policy likely has limits on covering high-value items like jewelry, electronics, or art. You may need a rider (additional coverage) to ensure these items are fully protected.
Water Damage Coverage
Water damage can be a tricky topic. Many policies exclude things like sewer backups, mold, or foundation leaks. Ask specifically what’s covered and if additional coverage is needed.
What’s the Difference Between Homeowners Insurance and a Home Warranty?
It’s easy to confuse these two, but they serve very different purposes.
- Homeowners Insurance protects against damage from unexpected events like theft, fires, and natural disasters.
- Home Warranty covers repairs or replacements of appliances and major systems (like your HVAC or water heater) when they break down from normal wear and tear.
Having both can provide a more comprehensive safety net for your home.
Final Thoughts
Choosing the right homeowners insurance is an important step in protecting your biggest investment. It might feel overwhelming, but starting with these questions and features can simplify the process and help you make an informed decision.
If you’re still unsure, don’t hesitate to reach out to us at Blink Lending. We’re here to help you find the best options and answer any questions along the way.
Pro Tip: When you’re speaking with an insurance provider, always ask who your primary contact will be and ensure they’re easy to reach in case of emergencies.
Your home is more than just a building—it’s your sanctuary. The right insurance policy can help protect it for years to come.
Want help shopping for homeowners insurance? Contact us today!
