Home Owners Insurance: Am I Covered?

If you are buying a home or remodeling your existing home, it is a good idea to make sure the homeowners’ policy meets all your needs. Remember, your agent is your best source of information about your homeowners’ policy. Make sure you take the time to discuss with him or her any of the concerns or questions you have. Your premiums pay for that time they spend helping allay your fears and concerns.

Here are questions you should ask:

  1. Will this policy cover direct losses due to fire, lightning, tornadoes, wind storms, hail, explosions, smoke, vandalism, and theft?
  2. What will happen if our house is totally destroyed by fire? Should my coverage be based on cost to rebuild or cost to replace?
  3. Is our home in a flood area? If so, how do I purchase flood insurance?
  4. Will this policy cover water damage from a burst pipe?
  5. Will this policy cover water seepage from ground water?
  6. Are we in an earthquake zone? Do I need to buy an additional homeowners’ policy for earthquakes?
  7. Does this policy include liability protection if someone is injured on my property? What are the circumstances for the coverage and the extent of the coverage?
  8. Does the policy cover damage from trees which have fallen during a storm? What about removal of trees that fall during a storm but do no harm to my property?
  9. If my power goes out due to a storm, will this policy cover spoilage in my refrigerator or freezer?
  10. Does this policy cover items stolen from my car?
  11. Does this policy cover rebuilding requirements set by town ordinances or laws for disasters? (This is especially applicable in seashore resort areas.)
  12. Does this policy cover disasters often termed “Acts of God?” If so, what are considered “Acts of God?”
  13. Is my coverage based on Actual Cash Value or replacement cost?

If you have questions about insurance you can contact the National Insurance Consumer Helpline. Here are three ways to reach them:

Call:
1-800-942-4242
 
Visit web site:
www.iii.org
 
Write or call:
Insurance Information Institute
110 William Street
New York, NY 10038
(212) 669-9200

Source: United States Office of Consumer Affairs

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