Questions to Ask When Shopping for Home Insurance

Questions to ask home insurance

To be able to find the best tenant, condo or home insurance rate possible that provides the best coverage, you must know the various factors that affect premiums as well as the different types of coverage that are available. Before making a decision, there are 5 vital questions that we can review to find you the most competitive rate.

Are There Any Discounts?

There are actually a number of discounts which can be used to lower your home insurance premiums. If you have been a loyal customer, are over 45 years old, have a specific occupation, or have home security measures such as an alarm system or water sensors can help you save on your rate.

How Much Would It Cost to Replace My Contents or Rebuild My Home in the Event of a Loss?

Always make sure that the policy insures your contents and/or home for what it would cost to replace and/or rebuild – not the amount you paid when you purchased your valuables or house. Ask to be shown the replacement cost analysis so that you can make sure it is accurate.

How Much Is the Deductible?

The deductible is what you are responsible to pay out of pocket before your insurance company will cover your claim. Having a higher deductible can lower your premiums, but you need to choose an amount that you are comfortable with.

What Insurance is Mandatory?

There is no law that requires individuals to have a tenant, condo or homeowners insurance policy. Many landlords will require that their renters hold a tenant insurance policy and most banks or mortgage lenders will ask for proof of coverage prior to lending money to purchase a condo or home. There are different types of coverage available and not all of them are the same. The most recommended coverage is Comprehensive insurance.

What Endorsements Should I Consider?

There are many common endorsements which can be added to a tenant, condo or home insurance policy. Selecting the right endorsements is important to ensure that your valuables and property are fully protected and you have enough coverage to reduce your financial burden should a disaster strike. Make sure that you consider:

Guaranteed Replacement Cost* – When you buy a home insurance policy, the replacement value of the residence is calculated. However, should a disaster occur, it may cost more to rebuild or replace your home. The guaranteed replacement cost endorsement will cover the entire amount, even if it exceeds the insured limit.

Sewer backup* – Will insure damage to property caused by the sudden and accidental backing up or escape of water through a sewer, septic system, sump or drain.

Claims Free Protector* – Allows you to retain your claim free rating if you’ve had one claim arise out of the coverage for your home and/or its contents.

By-Law Endorsement* – Sometimes, when a home has to be rebuilt, the by-laws and building standards may have changed, which will cost more to replace. The by-law endorsement will cover any additional expenses required to bring your home up to code.

*Note: Coverage is subject to policy wordings, terms, conditions & deductibles. Protection is limited to the perils, coverage, exclusions, limits etc. as shown on the policy.

Trust the Professionals at Bow Valley Insurance

Let us do the shopping for your home insurance policy to get you the best possible rate. As professionals serving the insurance needs of our community since 1979, we know how to get you the coverage that you need at the most competitive price – we will even show you the comparisons. We will also maximize your discount opportunities, identify the coverage that you need and explain the various home insurance policies available so that you can make an informed decision.

Start saving today and get a free quote for the best home insurance rate with the best coverage available. Call 403-297-9400 today!