Insurance Advisor at Oliver L.E. Soden Agency, Inc

Home Insurance: 5 Questions New Homeowners Should Ask

Are you a new homeowner and in the market for home insurance? Congratulations! This is an exciting time, though probably overwhelming. Trying to find the right homeowners insurance can be a challenge, especially with so many companies vying for your business. Even though you have a lot going on, don’t rush into choosing an insurance provider. If something does happen to your home, you want to be aligned with the right company.


Below are five questions we recommend asking when shopping around for home insurance.


1. What is and is not covered in the policy?


After a disaster is not the time to learn what is covered in your policy. Homeowners insurance is broad, so it’s helpful to go over specific scenarios. For example, if your roof is leaking, is that considered water damage or flooding? If your laptop is stolen, will the insurance reimburse you for the purchase price or depreciated value? By knowing this information, you can set limits and avoid surprises.


2. What is the rebuilding cost of my home?


Your homeowner policy should provide enough coverage to restore your home if it’s damaged in a natural disaster. When looking at the dwelling coverage, be sure to have protection that is equal to or greater than your home’s rebuilding cost, not its sale cost. For example, your home may sell for $250,000 but can be rebuilt for $130,000.


3. How much stuff should I protect?


Most of your belongings are covered under home insurance, but only up to a certain value. This is why it’s important to keep an updated home inventory. When you know what you have, you can set appropriate limits and purchase insurance riders for expensive items such as coins, artwork or jewelry.


4. Is there a claims history on my property?


Just as you would request a CarFax report when shopping for a new vehicle, it’s not a bad idea to review the claims history on your property. Knowing what has happened on your lot gives you an indication of the types of things your property is prone to such as flooding or sewage problems. You can always add extra coverage specific to the issue.


5. How will claims be handled?


Insurance companies are great to work with - until you need them! When you’ve narrowed down your search, do a little digging on the insurance company to see how they handle claims. Are they easy to get a hold of? Do they settle payments quickly? This is where it pays to work with a local agent such as Soden Insurance. We watch out for our customers and ensure that they get the fast, reliable service they deserve.


If you’re in the market for homeowners insurance, call Hal Soden! Ask about our many ways to save, such as by bundling your policies or adding extra security to your home.