If this is the first time you buy home insurance or if you are coming to the state of Texas and need to buy insurance for your new home, you may be wondering, what questions to ask when buying insurance?
According to OPIC, the questions can be divided according to the theme, for which we highlight two, particularly the coverage and the customization of the insurance, since we work mainly with personalized insurance.
- Coverage
Ask questions: When speaking with a company or agent, ask:
- What types of policies do they sell and from which insurance companies?
- Which policy do your clients commonly prefer? Which policy has the most coverage? What are the differences between one policy and another?
- What type of deductible is sold and how does it affect my policy?
- What types of water damage are covered under the basic insurance policy? What is not specifically covered?
- Should I get flood insurance or is it offered by the policy I’m buying?
Most policies do not cover flood damage or are restrictive and you should be aware of all the details. You may need additional flood insurance even if the lending bank does not require it for bank loans.
- Personalization
Endorsements are changes in the policy that offer you more or less coverage and that modify your premium. You have the option to add certain endorsements. Instead, there are other endorsements that are “required endorsements” and do not offer options.
Ask questions: When speaking with a company or agent, ask:
- What endorsements do your customers buy the most?
- Are there endorsements that are mandatory?
- How much will each of the endorsements cost or save me?
- Are there claims under this policy that are paid based on present cash value (ACV) rather than replacement cost value (RCV)? If yes, is the RCV option available?
- Is the deductible on this policy higher when it comes to natural disasters? Is coverage for winds excluded?
- Is there coverage for special items like jewelry, artwork, or weapons that are personal or not?
- Are there discounts if you have a home security system or fire prevention systems or maximum protection locks installed?
If you want to ask all these questions and more to an insurance agent you can contact us