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Intro: |
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| Be wary of "basic" or "special" packages that may be cheaper but will usually exclude certain situations, like problems due to short circuiting of electricity; improperly functioning plumbing, air conditioning, or heating; and damage due to the weight of snow and ice. |
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After you've compiled a list of insurers, it's time to start asking questions to narrow down your search. Although every homeowner will require different coverage, here are some basic concerns: Do they offer a comprehensive package? This provides the most extensive coverage to home owners, typically including everything except war, floods, and earthquakes. But again, ask a lot of questions to make sure. Is there a replacement cap? You want unlimited replacement coverage. If an insurer is trying to sell you a policy with a replacement cap, find another agency to insure your home. Are you covered for the replacement value or the depreciation value? Make sure you get coverage for the amount it would cost to fully rebuild your house after a disaster. Avoid policies that cover only the house's depreciation value, which is the market value at the time of the original appraisal minus the estimated wear and tear since then. Are you covered for the replacement value of your possessions? Without this, you're only covered for the depreciated value of anything broken or stolen. Is there an inflation-adjustment provision? This would annually raise your coverage relative to increases in local building costs. Ask about how much this will raise your annual premium. Are you covered for liability protection? Regardless of who's at fault, this covers you for damage or injury to others while on your property. Does the policy include an ordinance and law endorsement? This provides coverage for a portion of any costs for upgrading wiring and plumbing to comply with changes in local building codes if you must rebuild all or part of your home.
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Look out for red flags
