Choosing the right homeowners insurance policy can seem daunting, especially with so many factors to consider. In our latest blog post, ’50 Questions You Should Ask Before Choosing a Homeowners Insurance Policy in California’, we break down the most essential questions you should be asking your insurer. This comprehensive guide covers a wide array of topics including policy coverage, cost, claims process, insurer reputation, additional coverage, policy changes, liability, and even considerations for renting or sharing your home. Navigate the insurance landscape with confidence and ensure you’re adequately covered, no matter what comes your way!
Policy Coverage
Q: What perils does the policy cover?
A: Standard policies cover a range of perils, including fire, wind, hail, and theft. But it’s essential to confirm this with your provider.
Q: Does the policy offer replacement cost or actual cash value?
A: Replacement cost covers the cost to replace items, while actual cash value considers depreciation.
Q: Is water damage from plumbing issues covered?
A: Some policies cover sudden and accidental water damage but not wear and tear or neglect.
Q: Does the policy cover the additional living expenses if my house is uninhabitable?
A: Most standard policies do, but you should confirm the extent of this coverage.
Q: Are my high-value items (jewelry, art, etc.) covered?
A: Typically, homeowners insurance has limits for certain high-value items. You may need additional coverage.
Q: Is my home office covered?
A: Standard policies might not cover business activities at home. You may need additional business insurance.
Q: Are structures detached from my home (garage, shed, etc.) covered?
A: Yes, most policies cover detached structures, but confirm the extent of coverage.
Q: Does the policy cover natural disasters such as floods, earthquakes, or wildfires?
A: Standard homeowners insurance typically doesn’t cover floods and earthquakes. In California, wildfire coverage might vary.
Policy Cost
Q: How much will the policy cost annually?
A: The cost will depend on factors like your home’s location, size, age, and coverage amount.
Q: What is the deductible?
A: The deductible is the amount you pay out-of-pocket before your insurance coverage kicks in.
Q: Does the policy offer discounts for security systems, disaster-proofing, or bundling with other insurance policies?
A: Many insurers offer discounts for these, but always confirm.
Q: How does payment work? Can I break it up monthly, or is it annual?
A: Payment options will vary by insurer, and some do offer monthly installments.
Q: Will my premium increase over time? If so, by how much?
A: Premiums can increase due to inflation, claims, or increased risk.
Q: If I make a claim, will my premium increase?
A: Often, making a claim can cause your premium to increase, but it depends on the nature of the claim.
Q: What factors could affect my premium?
A: Factors can include your home’s age, location, value, your deductible, and your claims history.
Claims Process
Q: How do I file a claim?
A: The process varies by insurer, but typically it involves contacting your insurer, filling out forms, and providing documentation.
Q: How long does it take to process a claim?
A: It depends on the insurer and the complexity of the claim, but generally, insurers aim to resolve claims as quickly as possible.
Q: Will I work with a dedicated claims adjuster?
A: Many insurers provide a dedicated adjuster to guide you through the claims process.
Q: How is the reimbursement value of a claim determined?
A: Insurers use various factors, such as policy details, the extent of the damage, and whether you have replacement cost or actual cash value coverage.
Q: If I’m unhappy with a claim settlement, what recourse do I have?
A: If you disagree with a claim settlement, you can appeal the decision, request a third-party appraisal, or file a complaint with the California Department of Insurance.
Insurer Reputation and Service
Q: How is your customer service rated?
A: Look for customer reviews and ratings online to assess the insurer’s reputation for service.
Q: How accessible are your service representatives?
A: Check if they offer 24/7 support and multiple contact methods, like phone, email, or chat.
Q: Do you have a local agent I can speak with directly?
A: Some insurers have local agents to provide personalized service.
Q: How long has the company been in business?
A: Longevity can be a sign of stability and reliability.
Q: What is your claims satisfaction rating?
A: Check for claims satisfaction ratings on review sites or industry evaluators like J.D. Power.
Optional and Additional Coverage
Q: Can I get additional coverage for my valuable items?
A: Yes, insurers typically offer the option to increase coverage limits on high-value items.
Q: Can I add flood insurance to my policy?
A: Flood coverage is typically not included in standard homeowners insurance, but you can buy it separately through the National Flood Insurance Program.
Q: What about earthquake insurance?
A: Earthquake coverage is also not usually included but can be added as a separate policy or endorsement.
Q: Can I add coverage for identity theft?
A: Many insurers offer identity theft coverage as an optional endorsement.
Q: Can I add coverage for my home-based business?
A: Some insurers offer home-based business coverage as an endorsement or separate policy.
Policy Changes and Cancellation
Q: What happens if I want to change my coverage or deductible?
A: Most insurers will allow you to adjust your coverage or deductible, but it may affect your premium.
Q: Can I cancel my policy at any time?
A: Yes, you can typically cancel at any time, but you may be charged a cancellation fee.
Q: What happens if I forget to pay a premium?
A: If payment is not received, your policy could be canceled, but insurers usually provide a grace period.
Q: How often should I review or update my policy?
A: It’s a good practice to review your policy at least annually or after major life events, like a renovation or major purchase.
Q: What if I want to switch insurance companies?
A: You can switch companies at any time, but make sure there’s no lapse in coverage between policies.
Liability Coverage
Q: Does the policy cover medical expenses if someone is injured on my property?
A: Yes, most policies include medical payments coverage for minor injuries to guests on your property.
Q: Does it cover my legal defense if I’m sued because of an accident on my property?
A: Yes, liability coverage typically includes legal defense costs.
Q: Does the policy cover me if I accidentally damage someone else’s property?
A: Yes, the personal liability component of your policy should cover this.
Q: What’s the limit of my liability coverage?
A: Standard policies often provide a minimum of $100,000 in liability coverage, but you can choose to increase this.
Q: Can I increase my liability coverage?
A: Yes, you can usually purchase additional liability coverage or a separate umbrella policy for more protection.
Renting and Sharing Economy
Q: Is my home covered when I’m away on vacation?
A: Yes, but if you’re away for an extended period, you might need unoccupied home insurance.
Q: If I rent out my home, is it covered?
A: Regular homeowners insurance may not cover rental activities. You’ll likely need landlord insurance or short-term rental insurance.
Q: If I rent out a room in my house, does my policy cover my tenant’s belongings?
A: No, tenants should purchase renters insurance to cover their belongings.
Q: Does my policy cover damage caused by renters?
A: Not typically. Consider requiring short-term renters to provide proof of renters insurance.
Q: What if I want to rent my house on Airbnb or VRBO?
A: You’ll need to check with the platform for their coverage and possibly add short-term rental insurance or a home-sharing endorsement.
Q: Can I get insurance if I share my home with roommates who are not family members?
A: Roommates may not be covered under your policy, so they should consider getting renters insurance.
Q: Is my pet covered under liability coverage if they injure someone?
A: Some insurers cover pet-related incidents under liability coverage, but breeds considered high-risk might be excluded.
Q: Will making energy-efficient upgrades impact my insurance premium?
A: Some insurers offer discounts for green homes or energy-efficient upgrades.
Q: What happens if my house is a total loss?
A: If your home is destroyed by a covered peril, your insurer should pay up to your policy’s dwelling coverage limit to rebuild or repair.
Q: Can I get insurance if I own a mobile or manufactured home?
A: Yes, but it requires specific mobile or manufactured home insurance, which differs from standard homeowners insurance.
