15 Questions About Homeowners Insurance You Should Ask Upfront

If you’re buying a new home, you need to make sure you get adequate homeowners coverage.  But, how can you know if you’re getting the best coverage for your needs?  Spending time asking the right questions about homeowners insurance will reveal the answer.

Sandifer Insurance Agency is here to help you make informed decisions about your homeowners insurance.  We have been in the business of helping homeowners protect their property for over 40 years.  As your local agency, we will make sure you get prompt and personalized attention if you should incur a loss on your property.

Before researching insurance companies, the first thing to do is make a list of questions about homeowners insurance.  If you’re prepared, you won’t forget anything important that could lead to you not having the right coverage when you need it.

Questions and Answers About Homeowners Insurance

It is important to know what you can expect from your insurance company.  Asking the following homeowners insurance questions is a great way to ensure an informed decision and the best coverage and rate for your needs.

1. What does homeowners insurance cover?

A standard insurance policy includes four main types of coverage such as dwelling, personal property, liability, and additional expenses coverage.  Of course, you can add extra coverages based on your needs.

2.  What are policy limits?

Policy limits refer to the maximum amount your insurance provider will pay in the event of a claim.  If you have a 0,000 home, the dwelling coverage will pay the full 0,000 in a total loss, if you have replacement cost insurance. Personal property coverage is usually 50 percent of the dwelling limit.  

3.  What is umbrella insurance and do I need it?

An umbrella policy offers extra protection in the event of a major loss.  It can protect you from legal fees that exceed your policy’s liability limits.  Your agent can help you determine if you should add an umbrella policy to your homeowners insurance.

4.  How are homeowners insurance rates calculated?

Several factors are involved in determining your insurance rate.  For instance, the condition, age, location, and size of the home, plus your claims history all play a role in the cost of the coverage.

5.  Should I include flood insurance?

Flood insurance is not included with a standard insurance policy.  If you live in an area that is prone to flooding or lots of wet weather, flood insurance is a good option.   Some mortgage companies may require flood insurance, so make sure you ask about this coverage.

6.  How much coverage do I need?

The amount of coverage you need depends on your financial situation and how long you plan to live in the home.  You have two options to choose from: (1) Actual Cash Value, and (2) Replacement Cost.  ACV covers the value of your home and belongings, but depreciation is taken into account.  Replacement Value Insurance covers what it will cost to replace or restore your home to its original value without depreciation taken into account. 

7.  What is personal liability protection?

If someone is injured on your property, personal liability protection covers medical and legal costs.  A standard homeowners policy will provide $100,000 worth of liability coverage, but you can raise the limit if you feel it is necessary.

8.  How much deductible should I choose?

The deductible is the amount of out-of-pocket money you pay on a claim before the insurance pays its portion.  Your premium will decrease if you raise the deductible amount.

9.  Which insurance company should I choose?

Local insurance companies may be your best option if you live in a high-risk area, since they know the area and can provide you with personalized service.  On the other hand, it’s a good idea to compare as many quotes from large, national companies before making a choice.

10.  How can I save on my homeowners insurance?

Some ways to lower your insurance premium include:

  • Install a security system and deadbolts
  • Install smoke detectors and sprinkler systems
  • Don’t file small claims
  • Account for home improvements such as a new roof, storm shutters, etc.
  • Raise your deductible
  • Take advantage of discounts for bundling your home and auto insurance

Most homeowners don’t realize these types of things can affect their premium.  So, don’t hesitate to talk to your agent or provider about other ways to save on your premium.

11.  Do I need a home inspection first?

Most insurance providers require an inspection to assess the risk in your home and calculate your rates.  Before the inspection, do whatever small repairs and clean-up jobs that may have a negative impact on the inspection.

12.  Is homeowners insurance tax deductible?

Generally, homeowners insurance is not tax-deductible.  But, there are some exceptions.  For instance, if you operate a business out of your home you can deduct some of the insurance costs when filing taxes.  Also, if you are a landlord, you may be able to deduct some of the insurance costs.  

13.  Is Homeowners insurance different from renters insurance?

Homeowners insurance is for individuals who own a home. It typically covers the structure itself and the owner’s belongings.   Renters insurance is for people who rent their living space.  Renters insurance covers the personal belongings in the home or apartment being rented.   The landlord provides insurance on the building. 

14.  How do I pay my insurance premiums?

If your home is financed, the insurance will likely be included in the mortgage amount.  When the insurance is not included in the mortgage, you can talk to the provider about paying monthly or annually.  

15.  What is the best way to compare insurance quotes?

One way to compare quotes is to request an online quote from different providers.  But, the process can be time-consuming and confusing.  It may be easier to let an agent do the work for you.  An insurance agency works with some of the top insurance companies and can help you find the affordable coverage you seek.  

Got Questions About Homeowners Insurance?  Get the Right Answers from Sandifer Insurance Agency

Choosing the right insurance coverage and provider should not be a hassle.  If you’re in the market for a reliable homeowners insurance company, let Sandifer Insurance Agency help you make the right choice.  We’ll do all the work, and you can relax knowing you’re home is adequately protected.  

Contact us today at our office near historic downtown Cheraw, SC to speak with a member of our insurance team.  We’ll be happy to answer your homeowners insurance questions and recommend the most appropriate coverage available for your home and family.


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