The nature of insurance is that there are so many options for every type of policy, it can be difficult to know what you need and what you don't need. All these options allow an insurance agent to build you the best policy for your specific situation. Choosing a homeowner's insurance policy can be complicated. Here are three things to consider before meeting with an agent.
Do You Need Flood Damage?
Most homeowner's policies do not include flood insurance. This coverage requires an additional rider. If you live on the coast or below sea level, such as in much of Louisiana, you will probably want flood damage protection. But anywhere can flood. In 2015, Missouri and Oklahoma had the 5th and 6th highest flood insurance claims respectively. That may strike some people as odd, but in states that don't have a bunch of lakes and rivers, there isn't a surplus of existing reservoirs for excess rain to collect. These states also tend to have poor soil that doesn't do a very good job of absorbing torrential rains, leading to runoff.
Consider not only where you are located, but where lakes, rivers, oceans, and other bodies of water are in relation to your home as well as the general quality of your soil. When you meet with an insurance agent, you can ask them for the statistics regarding how popular flood insurance is your area to help you decide.
Ask If They Are Quoting For Replacement Costs Or Original Costs
Insurance companies and policies vary in what is covered. If you are only insured at the original cost, it may not be enough to replace whatever is damaged, including your entire house in worst-case disasters. A insurance agent will help you by assessing your property and your needs, but have a good idea beforehand of what you feel you would realistically need to rebuild.
Check For An Anti-Concurrent Causation (ACC) Clause
An ACC clause comes into play if a weather event happens that covers one thing but no the other, possibly reducing or nullifying coverage. For example, a major storm causes both wind damage and flood damage. If the quotes you get have this clause in their policy, ask what the restrictions are. Be sure to ask the agent if there are any other clauses to be aware of in your quote. In these cases, it may be best to consult a public claims adjuster to work with your insurance company if you need to file a claim.
For more information, you will want to contact a company such as Great Lakes Public Adjusting.Share