The following checkl ist
is intended to give you a guide to choosing your home insurance. It is not intended to be an exhaustive list of questions.
Top 10 questions to ask your insurance provider BEFORE you purchase or renew your insurance:
- What kind of homeowners policy do I have, and who/what is covered under it?For example, your insurance needs to cover you for replacement cost of the house only, not the land. Also, if you have valuable possessions, you may well need a special rider to cover certain things. I have one of these, an Inland Marine rider, to cover my camera equipment. There are also some things that cannot be insured; an example of this would be my wife’s $40,000 worth of collectible china – because it is breakable, our insurance company will not cover it.
- How do I know if I am adequately insured? Your insurance agent will be able to provide you with some worksheets to come up with the value of your possessions (contents), and they will also be able to tell you how much your actual house is being insured for. Now’s not the time to try and save a few sheckels on your premiums by under-valuing your prized possessions. Remember, in the case of loss or destruction, you will have to replace them.
- What is NOT covered in my homeowners policy? (What are the “exclusions”?) If, for example, you use a laptop computer, and maybe you take it on the train with you to work, but don’t use it for work, will it be covered by your homeowners policy? Or if, like me, you have a collection of camera equipment, will it be covered by your homeowners policy or will you need a separate rider?
- Do I have replacement cost? Guaranteed replacement cost?
It wouldn’t be very good to find out that your insurance only covers the cots of replacing at the original price, so make sure how you are covered.
- What are the limitations on valuables, like jewellery, silverware, and computers?
As noted earlier, you have to be cautious about the type of coverage, however, you also have to be aware of the maximum amount of coverage. It would not be good to find out that your $7,500 camera is not covered on your insurance!
- What does my policy cover me for in terms of water damage?
Depending on where you live, this may or may not be an issue. BUT, suppose you live in the area of Milton that is within the ’100-year Flood Plain’, will your insurance cover that? Do you even know if you live within that part of town? It’s not an obvious area, and it’s much larger than you might think – call me for more details.
- What optional coverages should I consider?
The sky’s the limit when it comes to this category; just make sure that any coverage suggested is clearly explained to you.
- What is my deductible? How much money can I save on my premium by choosing a higher deductible?
Typically, the answer is yes, but that’s not always the case. - What safety features can I install that will help me save money and increase my protection?
For example, if I install an alarm system, will my policy costs go down? Does it matter if the alarm is monitored? What about sprinkler systems – do they lower my premiums?
- Does the company offer 24-hour claims service? Who do I call in case of a claim?
When you have a claim . . .
- Am I covered? For how much? (If not, why not? Show me where in the policy it explains that.)
- Is there a deductible? How much?
- Can I get assistance right now to make temporary repairs? How do I go about arranging the repairs?
- What do I need to do to file my claim as soon as possible?
- How long will it take to settle my claim?
Getting the right insurance policy for you is critical. Your mortgage lender requires you to have insurance, and you will be required to provide proof of insurance prior to the mortgage being funded.
Don’t be shy, and don’t assume you know the answers – ask your insurance agent. I personally recommend Heather Solie of State Farm at 905-693-1400!!
