Ask these questions to better understand your homeowners insurance coverage.
While you know that you need homeowners insurance, that might be the extent of your knowledge. Before you sign off on a policy, it’s important that you understand its specifics. To gain a better understanding of your coverage, here are some of the important questions to ask.
1) What does my policy cover?
Before you settle on a policy, it’s important to understand exactly what it will cover. Generally, homeowners insurance policies consist of four main coverages: property, personal property, personal liability, and loss of use. Ask your agent to go through the details of your coverage with you so you understand your coverage limits, covered perils, and so on.
2) What does my policy not cover?
You also need to understand your policy’s limitations. This means asking your insurer about excluded perils and potential coverage gaps. For instance, most standard home insurance policies will explicitly exclude coverage for flood damages, earthquake damages, landslide damages, pest infestations, home business claims, and so on. Once you understand where your coverage gaps lie, you can speak to your insurer about securing endorsements or other forms of supplemental coverage to ensure you are completely covered.
3) How much dwelling coverage does my policy offer?
Dwelling coverage refers to the amount of coverage that can be applied to rebuilding your home if it is completely destroyed by a covered peril. It’s important that you do not confuse your rebuilding cost with your home’s purchase price or market value. The price to rebuild your home (including labor costs, material costs, and the cost of meeting code) will be totally different than what you purchased your home for. So, make sure your policy is offering the right amount of coverage for your needs.
These are some of the questions that you should ask to better understand your home coverage. Do you need help securing the right homeowners insurance to fit your needs? If so, then contact the experts at Pierce Insurance Group. We are ready to get you the coverage that you need today.