Frequently Asked Questions About Homeowner’s Insurance
Have you recently purchased a home or are you considering purchasing a new homeowner’s insurance policy? There are a lot of factors to consider, and sometimes it’s hard to differentiate sales tactics from the truth. At InsureTN, we encourage full transparency. These are some of the most frequently asked questions about homeowner’s insurance, coupled with our honest answers:
Q: How much coverage do I need?
A: Most insurers will suggest that you’ll want coverage worth the full value of your home in the event that you need to completely rebuild. In most cases, that is not equal to what you originally paid for the home. You’ll need to factor in the change in value over time, especially based on location, as well as any renovations or upgrades that you’ve added.
Q: What WON’T be covered by my homeowner’s policy?
A: It’s important to know what your individual policy covers, because not every policy is the same. Typically, valuables and personal objects like cell phones are not covered under a homeowner’s policy. You can always purchase additional coverage to protect those items. Additionally, most homeowner’s policies will not cover flood damage. Other natural disaster damages like broken roofs are typically included, but you’ll probably want a separate flood insurance policy. They also don’t usually cover liability. If someone is hurt on your property, you could be in trouble if you don’t specifically ask for liability coverage.
Q: Am I eligible for a discount?
A: It never hurts to ask! Simple tools like higher deductibles or installing security systems can help keep your costs low. You may also be eligible for discounts if you insure your home and your car with the same carrier. Ask your agent before you purchase – you don’t want to miss out on a good deal.
Q: Is it better to have a high deductible or a high premium?
A: It depends on your financial situation. If you have a lot of money in the bank and you know that you can afford to pay for large damages, then a high deductible will be great to help you keep your monthly premium costs low. However, if you know that you don’t save money very well and you couldn’t afford to pay for damages out-of-pocket, then you may want to keep your deductible low and pay a higher premium every month.
If you have more questions about your homeowner’s insurance policy or if you live in Tennessee and are interested in purchasing a new policy, give one of our trusted agents a call at 615-964-5250.