Questions To Ask Before Purchasing Homeowners Insurance
It is not always easy to determine what type of insurance you need, or how much coverage you should purchase. If you do not make the right decisions now, though, it could hurt you if your home becomes damaged by storms, high winds, theft, or vandalism. By asking a few simple questions, you can avoid future issues and know that you are properly protected. Below, our Daytona Beach residential and commercial property damage lawyer outlines the most important questions to ask.
Does the Home have a History of Damage or Insurance Claims?
When buying a home, you should ask the previous owner about any prior damage such as fires, floods, sinkholes, or other events. If so, you should also ask if the damage has been fully repaired. You should also ask about any insurance claims that have been filed in the past and request to see any information pertaining to those claims. The more information you can retrieve, the better you can understand what type of coverage you may need.
What Type of Coverage is Necessary?
Generally speaking, there are three different types of coverage you can purchase for your home. These are as follows:
- Actual cash value: This type of coverage will provide payment for the actual cash value of the property after it is damaged.
- Replacement cost: This type of coverage will provide payment for the actual cost of replacing damage with property of a similar type and value.
- Guaranteed/extended replacement cost: This type of coverage is the most comprehensive and will cover the cost of repairing or rebuilding your home even if it is above your policy limits. Typically, the coverage is limited to 20 to 25 percent above the limits of the policy.
Is the Home in a High-Risk Area?
Certain areas are known as high-risk due to the fact that they are very susceptible to floods, hurricanes, sinkholes, tornadoes, and other incidents. Your home could also be considered high risk if it is not up to current building codes or if it is far away from the fire station. When this is the case, you may need to add a rider or addendum to your policy that specifically covers these risks.
How Much of a Deductible to Pay?
Your deductible is the amount you will have to pay before receiving coverage. The higher the deductible, the lower your monthly insurance premiums are. However, you should not choose a lower deductible just for more affordable payments. Ask yourself how much you are willing to absorb in the event of damage to your home, which can help you determine the deductible you want to pay.
Call Our Residential and Commercial Property Damage Lawyer in Daytona Beach Today
If you have other questions regarding your homeowners insurance, our Daytona Beach residential and commercial property damage lawyer can answer them. At Bundza & Rodriguez, our experienced attorneys can advise on all insurance matters including how much you may need, and how to obtain the proper coverage when you need it. Call us now at 386-252-5170 or chat with us online to schedule a free consultation.