Home Insurance

Buying House Insurance

Insurance Agent: Good afternoon. How can I help you today?
Customer: Hello. I would like to buy house insurance.


Insurance Agent: Of course. Do you own a house or are you renting?
Customer: I own a house.


Insurance Agent: Great. Can you tell me the address, please?
Customer: Yes, it’s 45 Oak Street.


Insurance Agent: Thank you. What kind of coverage would you like — basic or full coverage?
Customer: What’s the difference?
Insurance Agent: Basic covers fire and theft. Full coverage also includes water damage and liability.
Customer: I think I want full coverage.


Insurance Agent: Okay. The cost is $90 per month.
Customer: That sounds good. How can I pay?
Insurance Agent: You can pay monthly or once a year.
Customer: I’ll pay monthly.


Insurance Agent: Perfect. Let’s fill out the application form.
Customer: Thank you for your help.
Insurance Agent: You’re welcome!

When you’re shopping for house insurance, it’s important to ask the right questions to ensure you get the coverage you need. Here are some questions to consider:

  • What does the policy cover?
    Understand what perils are covered, such as fire, theft, vandalism, or natural disasters. Check if there are any exclusions.
  • What is the deductible?
    Find out how much you will need to pay out of pocket before the insurance coverage kicks in.
  • What is the coverage limit?
    Ensure the policy limits are high enough to cover the cost of rebuilding your home and replacing your belongings.
  • Are there any additional endorsements or riders?
    Check if there are optional add-ons that might be relevant, such as coverage for high-value items or home-based businesses.
  • How are claims handled?
    Understand the process for filing a claim and how long it typically takes for a claim to be processed.
  • Are there discounts available?
    Ask about potential discounts for things like security systems, smoke detectors, or bundling with other insurance policies.
  • What is the replacement cost versus actual cash value?
    Know whether the policy covers replacement cost (the cost to rebuild or replace) or actual cash value (replacement cost minus depreciation).
  • How is my premium determined?
    Ask what factors affect your premium, such as location, home age, or credit score.
  • What are the policy’s terms and conditions?
    Review the terms to understand any limitations or conditions that might affect your coverage.
  • How often can I review or change my policy?
    Find out if you can adjust your coverage as your needs change and how often you should review your policy.

These questions can help you get a clearer picture of what you’re buying and ensure you choose a policy that meets your needs.