Whenever you speak with an insurance agent, you need to think about more than getting a policy. The type of insurance is often more important than just having coverage. Here is why the type is so important in the world of home insurance agent services.
Specificity
Your goal in securing insurance is to have peace of mind. Unless you know that the policy covers a specific thing, though, it's hard to say that you're covered.
For example, dwelling coverage only insures you against structural damage to your house. If a visitor has an accident walking on the sidewalk and then sues you for negligence, dwelling coverage doesn't address that. Someone who wants protection if a person suffers an accident on their property needs to talk with a home insurance agent about third-party liability coverage.
The same goes for protecting your belongings. Yes, a dwelling policy protects you against something happening to the house. However, it doesn't cover your furniture, clothes, electronics, and other possessions. For that, you need personal property coverage.
Exclusions
Some hazards are uninsurable on some properties. You need to be clear when consulting with a home insurance agent about the exclusions. The classic example is a house in a flood plain. Most insurance policies won't cover property with extreme flood risk. If you want coverage, you'll have to contact the federal government's flood insurance program. There may be similar exclusions in earthquake, wildfire, and hurricane zones.
Even if a policy does cover something, there may still be limitations. A policy might cap coverage for certain natural disasters at $1 million, for example. Over that limit, you'll have to pay out of pocket or find a federal program.
Additional Coverage
In many cases, you can purchase additional forms of coverage. For example, you should ask a home insurance agent if your policy will cover living expenses if you have to relocate to a hotel while contractors fix your residence. If the policy does cover it, then you should ask the agent to clarify when it does. If it doesn't cover it, then you should ask about purchasing that kind of coverage.
Discounts
Finally, some types of policies can come with discounts. For example, your policy covering theft will likely include a discount if you install a home security system. You can ask the home insurance agent what you need to do to document the presence of the system and get the discount.
To find out more, contact a company like LH Griffith and Company.
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