22 Questions to Ask About Homeowners Insurance

It’s tough to know what questions to ask about homeowners insurance. Here’s a quick guide so you know how to ensure you’re getting the right coverage.

Lindsay VanSomeren
Lindsay VanSomeren
  • 8 years in insurance and personal finance writing

  • Former data scientist for U.S. Geological Survey

Lindsay is a freelance personal finance writer currently pursuing her Series 65 license. She enjoys helping readers learn money management skills that improve their lives.

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Sara Getman
Edited bySara Getman
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

Updated October 2, 2024

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The average home insurance policy costs $2,191 per year in 2024 for a standard policy with $400,000 in dwelling coverage, according to Insurify data. Given the high price tag, it’s important to know how your policy works and to have adequate protection in case you ever need to file a claim.

The best way to do this is to ask your insurance agent the right questions, but not everyone knows exactly what to ask.

Here are the best questions to use as conversation starters with your agent so you can figure out the right home insurance coverage for your needs.

Questions about coverage

Unfortunately, homeowners insurance doesn’t cover all potential losses. Instead, it’s a matter of what it covers and how much. It’s better to have this information up front so you can buy enough coverage for your needs.

What does my homeowners insurance policy cover?

Most people have a standard form (HO-3) insurance policy, which covers the following items:[1]

  • Dwelling coverage: The structure of your home, along with most other non-attached buildings like a shed or workshop

  • Personal property coverage: Stuff that you own, such as clothing, appliances, computers, and electronics

  • Liability coverage: Legal defense if someone sues you or a family member for causing them bodily injury or property damage while on your property

  • Additional living expenses: Room and board if you need to live away from your home after a covered event

Does my policy cover the actual cash value or replacement cost of my house?

Standard home insurance policies cover your home in one of two ways. Actual cash value is cheaper, but it doesn’t pay out as much because it only pays your home’s value as it stands right now. Replacement cost value is more common and more expensive but pays to fully rebuild a new home, including construction costs, to its original value.

How much dwelling coverage do I have?

Dwelling coverage protects the actual structure of your home. You can get a quick estimate of the coverage level you need by multiplying the square footage of your home by local building costs. If some aspects of your home are more expensive, such as if it’s an older home or has a metal roof, you may need to increase coverage.[2] You can find the amount of coverage you have on your policy’s declarations page.

Does my policy pay for living expenses if I can’t live in my house?

Most policies come with additional living expenses coverage (also called loss of use coverage) to pay for costs when your home is uninhabitable because of a covered peril. For example, if your home is undergoing repairs after a storm, your insurer will help pay for you to live elsewhere. 

Here are some common things it pays for:

  • Hotel rooms

  • Laundromat service

  • Pet boarding

  • Restaurants

  • Storage units

Does my policy cover water damage?

Insurance coverage for water damage depends on where the water came from. If it’s from burst pipes or rainfall damage, chances are your insurance will cover it. If it’s from the ground — including flood damage and sewer backups — probably not. You can purchase separate riders for some types of damage, such as sewer backups, but you’ll typically need to buy a separate policy for flood coverage.[3]

Additionally, if the water damage results from a lack of maintenance, such as not repairing a broken roof, your insurer likely won’t cover it.

Does my policy cover damage from wind and hail?

A standard homeowners insurance policy covers damage from wind and hail, with a caveat. If you live in certain states that frequently see storm damage, such as along the Gulf Coast, your insurer may have you pay a separate hail or wind deductible from the rest of your policy.[4]

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Questions about terms, conditions, and deductibles

It’s often hard to understand the fine print of your insurance contract, which is why it’s a great point to discuss with an agent ahead of time. It’s better to know the fine print before you file a claim, but even during a claim, your policy can provide useful clues to ensure your insurer approves your claim.

How much is my deductible?

Almost all insurance policies require a deductible so that you also have a financial stake in a claim. Homeowners insurance policies typically come with deductibles ranging from $500 to $1,000 or more that insurers deduct from your claim payout. A good rule of thumb is to choose the highest deductible you can afford to pay out of pocket.

Do I have more than one deductible?

It’s possible. Your homeowners insurance policy will cover the common perils, but you may have separate deductibles for additional policies. For example, standard home insurance doesn’t cover flooding and earthquakes, so if you’re at a high risk for either, you’ll need additional policies and deductibles for each. Insurance covers wind and hail damage, but if you have a high hurricane risk, you may need additional coverage and an additional deductible.[5]

What does my homeowners insurance policy exclude?

It’s equally as important to know what your policy doesn’t cover as what it does cover so you’re not surprised when you file a claim. Here are some of the most common items and natural disasters that insurers exclude from a standard homeowners policy:

  • Flood damage

  • Neglectful damage

  • Intentional damage

  • Nuclear accidents

  • Earthquake damage

  • Landslides, mudslides, and other earth movement

  • Normal wear and tear

  • Terrorist attacks and acts of war

  • Pest infestations

When does my policy renew?

Most homeowners insurance policies last for 12 months. After that, insurers will typically renew them, although you can cancel that renewal if you shop around and find a better rate with another company. It’s a good idea to maintain continuous coverage on your home to ensure it’s protected and to comply with strict rules from many mortgage lenders.

Questions about additional coverages

Your environment is always changing, and homeowners differ across the U.S., so your home insurance should adapt, too. That’s why insurers may recommend other types of insurance depending on your specific needs. The following questions can help you better understand these products.

Do I need flood insurance?

Flood insurance isn’t required by law, but it’s a good idea if you live in a flood-prone area. Your mortgage lender may even require it if your home is rated high-risk. You can find your home’s flood risk on FEMA’s website.

Do I need earthquake insurance?

If you live in a seismically active area, it’s a good idea to consider buying an earthquake insurance policy; otherwise, your home may not be protected in the event of a total loss. You can buy a separate policy for earthquake damage from private insurers. These policies typically come with a percentage deductible rather than a flat amount (such as 5% instead of $1,000).

Do I need a separate windstorm/hail policy?

Some insurance companies won’t cover wind or hail damage at all in hurricane-prone states. If that’s the case, you may need to purchase a separate policy or an “endorsement” on your primary policy that adds this coverage to your plan.

Do I need any endorsements?

You might. An endorsement is an add-on to your regular insurance policy. It’s a way for you to get extra coverage based on your risk factors without buying a separate policy. People commonly buy endorsements to protect highly valuable personal possessions or to ensure their coverage limits stay in line with inflation.

Should I buy an umbrella policy?

Experts recommend matching your liability coverage with how much you have in assets in case someone sues you or anyone in your house. Most homeowners policies offer a small amount of liability coverage that you can increase if you pay a little extra, but many people should consider buying an umbrella policy that offers additional liability coverage for your home and auto.

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Questions on how to save

Insurance companies base the cost of your policy on a number of factors, such as where you live, your home’s structure, your credit history, and more. The good news is that you can save money on home insurance costs in lots of ways.

How much can I save if I bundle my home and auto insurance with the same company?

Most insurers offer lots of different types of insurance, including home and auto. In fact, most insurers offer a good policy discount ranging from 7% to 25% if you buy these two policies and others together.

Am I paying for any coverage I don’t need?

It’s good to do an insurance checkup annually before your policy renews. Review your declarations page to see what coverages and limits apply to you and whether you still need them. For example, if you’ve bought an additional personal property rider for your fine wine collection but you’ve since drank it all, you can get a lower rate by dropping that rider.

Which discounts is my home eligible for?

Insurers offer a lot of discounts, and this can be one of the easiest ways to save money. Installing safety features in your home, such as security systems, sprinkler systems, and smoke detectors, can yield big savings, and they’re also the best way to ensure your family’s safety.

Other popular discounts include green home discounts for energy efficiency, roof discounts, and disaster mitigation discounts.

Homeowners insurance FAQs

If you still have questions, check out these answers to the most important questions about homeowners insurance policies.

  • What’s the most important part of a homeowners insurance policy?

    The amount and type of coverage are the most important parts of a standard homeowners policy. They dictate whether you’ll be able to rebuild your home and replace your possessions and whether you’ll be protected in a lawsuit if someone sues you.

  • What shouldn’t you say to a home insurance representative?

    It’s best to stay calm and collected when dealing with insurance agents. Avoid giving estimates or guesses when talking about the value of your possessions and property because it can result in insufficient coverage. If you’re filing a claim, stay respectful and polite. You’re more likely to get the best results if you treat the agent with kindness and honesty.

  • How can you tell what your home insurance covers?

    You can find the full details of your current policy on your declarations page. This lists the exact limits for each covered item under your policy.

  • What questions do reputable insurance companies ask?

    Reputable insurance companies will ask you to estimate the value of your current possessions, including any valuable items, report how many people and pets live in your home, and describe your home’s current condition, among other things.

Sources

  1. III. "Homeowners Insurance Basics."
  2. III. "How much homeowners insurance do I need?."
  3. III. "Water Damage: What’s Covered; What’s Not."
  4. III. "Am I Covered?."
  5. III. "Understanding your insurance deductibles."
Lindsay VanSomeren
Lindsay VanSomeren

Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.

Lindsay has been a contributor at Insurify since October 2022.

Sara Getman
Edited bySara GetmanAssociate Editor
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

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