3 Questions To Ask When Choosing A Homeowner's Insurance Policy To Invest In
Are you getting ready to invest in a homeowners insurance policy? Here are a few questions to ask your broker before choosing a policy:
What Isn't Covered?
It's easy to find out what will be covered under a homeowners insurance policy, but it can be trickier to figure out exactly what will not be covered because the benefits of the policies tend to be focused on when you're comparing policies. But just because a policy is supposed to cover your whole house doesn't mean that it will actually cover everything inside.
So ask your service provider for an itemized list of specific items, structural components, and property features that will not be covered under any homeowners insurance policy you are considering investing in. This will help ensure that you know exactly what to expect if you have to make a claim with your insurance company at some point in the future.
Are Payment Arrangements Flexible?
It's also a good idea if payment arrangements for your insurance policy are flexible before making any commitments. Even if you feel confident that you can handle the monthly costs right now, your circumstances might change in the future. And if you can't make changes to your payment arrangements, you may lose your homeowners insurance policy altogether. So make sure that you can change payment dates, split payments up, or even defer a payment or two if it becomes necessary later down the line.
If payment arrangements aren't flexible, find out what the penalty fees would be if you were to miss a payment or send a payment in late for some reason. This will help you prepare for times when budgeting is tough throughout the month.
How Will Life Circumstance Changes Be Handled?
There may come in a time when you end up having to move due to work or some other reason. Or you may decide to expand your home or build a swimming pool in the backyard. So it's important to find out how these types of changes would affect the validity of your homeowners insurance policy. Can the home expansion or swimming pool be added to your policy, or will you have to spend time finding a new policy to invest in? And can the policy be transferred to a new property even if the price and coverage options change?
Contact your insurance broker today to learn more about your homeowners insurance policy options and to have these questions and more addressed.