Most Frequently Asked Homeowners Insurance Questions

Jul 4, 2020 | Personal Insurance

 A home is a place where you gather memories and build a foundation with your family. It is an investment you want to protect at all costs. Small or big events hold a lot of good and bad remembrances. These and a lot more reasons are subject to improving and maintaining your family’s safety at all times. That’s when buying homeowner’s insurance takes place. 

But do you already know the whole process of insurance purchase? Are there questions in your mind that you want to be answered clearly? 

Whether you are a new homeowner or have owned your home for a longer period, there’s no doubt you have any questions about homeowner’s insurance. You want to protect your home, your possessions, and your family. Below are the five most frequently asked questions about homeowner’s insurance.

5 Questions That Are Frequently Asked About Homeowners Insurance 

It’s not every day you get to encounter speaking with an insurance agent or even look at the policy you have bought months ago. Sometimes you wonder what if’s and other questions that pop out your mind that need answers. Your insurance agent is one call away if in case you’ve got questions you want to clarify regarding your policy. Here are some of the questions and their answers that might help you.

  1. As a homeowner, am I required to have insurance? Yes, in most cases, especially if you have a lender. They always require availing of insurance because they invested a big sum of money in your home. In case of a disaster that will hit your home, they are most likely to lose their investment. 

It’s also wise to look into insurance if you are in the process of constructing your home and even renting your home to someone else or have already owned a home. Instances like total destruction of your home or accidents that happened in your home that may lead to a lawsuit from an injured guest are good enough reasons to acquire homeowner’s insurance for you to stay protected.

2. What types of coverage does homeowner insurance provide? Two types casually, which covers the home and contents, and liability, which covers anyone who is injured on your property. 

The first one covers the damage that your home might encounter from perils that are listed in your standard policy. It also covers the loss and damage of your valuable stuff. These perils include – fire or lightning, hail, theft, vandalism, smoke, volcanic eruption, and other damages to property and electrical stuff. 

You are liable for any accident or injury that might happen to a person or damage to someone’s personal property inside your home. Your homeowner’s insurance will cover that for you both inside your home and other places you might have bee. It also covers the damage that your pet might cause others. With both types, the amount of coverage depends on the policy.
3. Will the replacement cost be the same as the sale price of my home? No. The replacement cost will cover the amount needed to replace the structure and/or contents of your home. Replacement cost is usually calculated based on the individual policy formula. It’s wise to take inventory and photographs of your home and contents to ensure you can claim the exact structure after rebuilding.

The sale price of your home depreciates as the years pass by. Its actual value is not the same as it was before when it was new. The reason for this is the age of your home and its present condition. It’s an advantage to have your home replaced no matter how much the present price of the construction materials is.
4. Will homeowner insurance cover damage or theft outside of my home? It depends on the policy. For the damage outside your home, sometimes standard policies offer this kind of coverage, but if not, ask if purchasing the coverage at additional costs is an option. At rare times, you will be surprised that even a damaged fence outside your home is actually covered by your policy! 

For theft cases, your insurance covers theft in and out of your home. But remember that your policy also has limits on how much they are willing to spend for the lost valuables. They might decrease the amount they will pay for expensive things like jewelry and electronics. In this case, you may opt to buy additional coverage for your valuable possessions.
5. Are home-based businesses covered under homeowner insurance? No, unless you qualify for an endorsement to your current homeowner insurance policy. Actually, a special endorsement by your homeowner’s insurance doesn’t give assurance of anything big and only limited coverage will apply for your business.  

Most of the insurance companies don’t include business operations on homeowner’s policies. Better not conclude that it’s covered by your insurance provider since you’re working at home. There are risks you might hardly handle like an injury you might cause by your product or service. A lawsuit might be on the way so it’s best to look into getting a business owner’s insurance policy that will cover for you.

Purchasing homeowner’s insurance undergoes a process in which your chosen provider will gladly estimate what suits you best as well as your needs. Of course, homeowners will have more questions about homeowner’s insurance particular to their own situations (including protection against the elements, possessions that are no longer in the home, contents of vehicles, etc.). 

When searching for a homeowner’s insurance policy, be sure to ask about coverage-relevant and beneficial to your own situation. Take the time to contemplate the best offer that will not compromise your safety and your hard-earned money. After all, you’re doing this for you, your family, and your possessions’ protection so you might as well decide with certainty.
Your home will be one of the most significant investments you will ever make, both economically and emotionally. Your family will spend countless hours there, among some of your most prized possessions. In the event of any misfortune, let us give you the peace of mind knowing that you are well protected.

If you have any questions or suggestions, don’t hesitate to contact us and we’ll get you sorted out. We also offer a five minute check-up right here.

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