Frequently Asked Questions About Your Homeowners Insurance
If you're an old hand at the homeowners insurance game you already know how this works. You don't need to recover old ground. If you're gearing up to buy your first home insurance policy, however, you're probably still feeling your way along-and you've no doubt got plenty of questions. As an insurance professional I talk to first time homeowners all the time, and they almost always have the same questions to ask.
Shopping for home insurance is only as hard as you make it!
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· How do I get cheap homeowners insurance? You can tell we're living in a tough economy, because lately it seems like this is the number one question on everyone's lips. I could give you the full run down, but we'd run out of time long before I ran out of info! Take a glance through our home insurance article archives and you'll learn everything you need to know (to get you started, anyway).
· How much homeowners insurance do I need to buy? This is a tricky one. A good guideline is to ask your home insurance agent to issue you a policy for the replacement cost of your home and possessions (i.e. the cost of buying comparable items today rather than what you paid for them ten or fifteen years ago). That way if disaster does strike you're not left scrambling for extra cash. $100,000 to $300,000 in personal liability on top of your replacement costs is the industry norm, but you can always ask for more if you feel you can afford it.
· How much are my deductibles? The amount of your deductible is going to vary from company to company. What's important is to make sure you never have a higher deductible than you can afford to pay. Higher deductibles=lower homeowners insurance rates, but you don't want to find yourself completely out of luck if you have to come up with that money after Murphy strikes again.
· Does my home insurance cover my child if they go off to college? With school starting again, this is one I hear quite a bit. Normally yes, your homeowners insurance policy will extend to your child's dorm room (and their bike) but your insurance agent needs to know what's going to be college bound. College campuses are prime places for theft, and you want to make sure you're prepared.
· Does my homeowners insurance cover items in my car? Much like a dorm, a car is considered a temporary resting spot rather than a full blown relocation. That means your insurance will usually cover items in your car if they're stolen, including your car stereo, as long as you let them know you want it insured.
· How often should I update my homeowners insurance policy? I recommend updating your home insurance policy with every renewal, unless you really haven't purchased or sold anything throughout the year.
This is just a sample of the questions we hear all the time from our new homeowners insurance policy buyers. If you still have questions feel free to glance through our home insurance article archives or contact your friendly neighborhood insurance agent.