12 Most Popular Homeowner’s Insurance Questions

By Catherine Robinson

If you own your own home, you need homeowner’s insurance. Here’s why.

1. How much to rebuild at today’s prices?

You want to protect your investment and your equity so getting your home value estimated or appraised will help you decide how much insurance you need to purchase.

2. What about liability claims?

This coverage is usually part of your homeowner’s insurance policy and protects against property damage or bodily injury claims. If someone falls on your property or if your dog bites someone, you are covered. If the accident is the result of negligence, you are covered. Homeowner’s insurance also pays for the legal costs of defending you against a claim.

3. Do you need personal liability umbrella coverage?

We live in a sue-happy society. Juries award large verdicts that sometimes exceed the amount covered by your homeowner’s insurance. Personal Liability Umbrella insurance provides more coverage to provide additional personal liability protection in case someone sues you.

4. How can you cover all your valuables?

There is limited coverage in standard homeowner’s insurance policies. You can always add a floater, which covers valuable property like jewelry, furs, and fine arts. Floaters cover all kinds of personal property with a higher value than a standard policy can cover.

5. Should you need to take pictures of your belongings?

Fill out an inventory list; take plenty of pictures and videos of every room in your house and all valuables. Keep the list and photos in a safe, accessible place, preferably outside the home, that you can access quickly if you need it.

6. What if you have to relocate while the house is being repaired or rebuilt?

If you cannot live in your home during renovations that are covered under insurance, the extra costs of housing and eating expenses are covered up to a certain amount.

7. Are fire, lightning, tornadoes, hurricanes and theft covered?

Yes, that is the point of insurance after all. Most perils, including hailstorms and other catastrophic events, are covered and if you live in a place where these types of storms happen often, then the price of your insurance will cost more. Flood insurance is often extra and requires a rider if you live in a flood zone.

8. What if a pipe bursts and water floods your floors. Are you covered?

Yes. If it’s an accident, it should be covered. In order to save yourself some time and troubles, you might want to check your plumbing and heating systems at least once a year. You’ll be covered, but think about all the work and deductible. Might be worth the time and money you’ll save if you take some to prevent catastrophes before they happen.

9. When should you add to your homeowners insurance coverage?

It’s important to review your policy at least once a year to make sure it still fits your needs. If you happen to do one of the following, call your agent to discuss adding on to the policy.

• Put an addition on your home;

• Start a business from your home;

• Make a major purchase, like a plasma television or expensive jewelry;

• Purchase another property like a rental or a second home.

10. Is earthquake damage covered?

Earthquake coverage is usually only available separately. If you live in an area that’s prone to earthquakes, you might find that the cost of this insurance is pretty high.

11. Why should you make your home safer?

If you guard against theft and accidents, you might save some money. Making your home safer and preventing certain kinds of losses can help you get lower insurance rates and policy discounts. Here are some ideas for ways to get lower premiums:

• Put dead bolts on the door and locks on the window.

• Install an alarm and put a signal outside that connects to police

• Install smoke detectors and check them periodically to make sure they work.

• Put in a sprinkler system in case of fire

• Choose a fire alarm that automatically alerts the fire department in your local area.

• Quit smoking.

• Always shovel snow from your driveways and sidewalks.

12. How much would it cost to replace the contents of your home?

There are two ways to protect your property’s contents:

• Replacement cost coverage - personal property is replaced without deduction for depreciation, but you will have a maximum dollar amount.

• Actual cash value - replacement value of damaged property minus depreciation.

Don’t underestimate the value of what you own. If destroyed, you will regret that mistake as replacing your valuables will surely cost more than you have to spend.

There are also discounts available on your premiums when you purchase both homeowners and auto insurance from the same company. Shop around online for different quotes and to compare the best prices and find the best deal.

Catherine Durkin Robinson is a contributing writer for BillSavings.com, your information resource and community for money-saving tips and offers so you can shop, compare, and save money on just about everything.

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