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4 Questions to Ask Before Choosing a Homeowners Insurance Plan

    2 minute read

    Thought leader series - homeowners insuranceLorena Brockman is a blogger for and has notable know-how in blogging, insurance, homeownership, and has been deemed “Greatest Auntie Ever” by many. To learn more about Lorena, visit her company’s blog at

    Buying or building a new home is a huge step. It’s something that a lot of people aspire for. Once you finally get the house you’ve worked so hard for, you want to be sure it’s protected. Homeowners insurance policies offer some protection against the unexpected, but what policy is the best for your home?

    Here are four questions to ask before deciding on a homeowners insurance policy.

    Homeowners Insurance - house on a slope

    1. How many claims has the home had in the past?

    You’ll want to ask the realtor or private seller how many claims are in the house’s history. This gives you an idea as to what kind of repairs have been done. Next, the kind of claims filed will help to determine the kind of coverage that may be necessary. Wind, water, or fire claims can give you an idea of the effects the climate may have on your home in the future. It’s also good to know how much time elapsed between claims and since the last incident so you’re aware of any possible repairs in the near or far future.

    2. How much would it cost to rebuild or restore in the case of a total loss?

    When you acquire your new home, it’s important to know the value. As you shop for insurance, find out the estimated cost to restore in case of a total loss. Sometimes claiming a total loss will only yield enough for partial restoration. Be sure the coverage is going to take care of most, if not all, of any possible damage.


    3. What kind of additional coverage might be necessary?

    With the claim history in your knowledge, you can determine if you’ll need any extra coverage with your policy. Flood and earthquake insurance is excluded in general homeowners policies, so if you live in an at-risk area, it’s an important detail to consider.

    4. How quickly are claims processed and paid out?hands-1176674_960_720

    When a disaster or accident occurs, you don’t want the bills to begin to pile up. It’s important to know the time frame your state requires your insurance to pay claims. Each state differs and some don’t require a time limit. Many states require that payments be made 30 days after a settlement is made. Some insurance companies require that you make repairs to avoid further damage before a claim is settled. Learn what the policy requires you to do in the event of a loss and follow all protocol to ensure there are no hangups in the payment process.

    Your home is an investment and protecting it is a high priority. Deciding on the best homeowners insurance policy will help keep your home and valuables covered in case of any incident. Asking the right questions will lead you to choose the best policy for you and your family.

    Browse more insurance topics so you’ll be well-informed before making an insurance decision.

    The information in this article was obtained from various sources. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.