Policy Insight: What to Ask Your Agent When Signing Up for Home Insurance

 

Signing up for homeowner’s insurance isn’t just about picking a policy and calling it a day; it’s about making sure everything valuable is properly covered before disaster strikes. The worst time to find out you’re underinsured is when you need to file a claim.

To avoid costly surprises, ask your insurance agent the right questions upfront and disclose everything of value in your home. Here’s what you need to know before signing on the dotted line.

 

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1. "Does my policy fully cover my home’s rebuild cost?"

Many homeowners assume their insurance will cover whatever it takes to rebuild their home after a disaster. That’s not always true.

Ask your agent:

• Does this policy cover replacement cost or actual cash value?

• Will my coverage keep up with rising construction costs?

• Do I need an extended or guaranteed replacement cost endorsement?

Pro Tip: Get an up-to-date replacement cost estimate (not market value) to ensure you’re adequately covered.

 

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2. "Do I need additional coverage for expensive items?"

Standard policies have limits on valuables like jewelry, art, collectibles, and electronics. If you own high-value items, you may need scheduled personal property coverage (endorsements) to ensure they’re fully insured.

Be ready to disclose:

• Jewelry, watches, and engagement rings

• High-end electronics (gaming PCs, cameras, etc.)

• Fine art, antiques, or rare collectibles

• Firearms

• Musical instruments

Pro Tip: Get appraisals for expensive items and provide receipts when possible. This helps establish value before a claim is needed.

 

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3. "What about water damage? Am I covered for all types?"

Water damage is one of the biggest sources of home insurance claims, but not all types of water-related losses are covered equally.

Ask about:

• Flood insurance (separate policy needed)

• Sewer backup coverage (often an optional add-on)

• Pipe bursts vs. slow leaks (some policies exclude gradual damage)

Pro Tip: If you live in a flood-prone area, check FEMA flood maps and strongly consider flood insurance—even if it’s not required.

 

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4. "Do I have enough liability coverage?"

Homeowners insurance isn’t just about property—it also protects you if someone gets injured on your property or if you’re legally responsible for damage to others.

Consider higher liability limits if you:

• Have a swimming pool or trampoline

• Own a dog (especially certain breeds)

• Frequently host guests

• Own rental property

Pro Tip: An umbrella policy provides extra liability protection beyond standard limits and is often surprisingly affordable.

 

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5. "Does my policy cover temporary housing if my home is unlivable?"

If your home becomes uninhabitable due to a fire, storm, or other covered disaster, you may need to stay in a hotel or rental.

Ask your agent:

• What’s the limit for Additional Living Expenses (ALE)?

• How long will my policy cover temporary housing?

• Are food and transportation costs covered too?

Pro Tip: Keep every receipt if you ever need to use ALE coverage—insurance companies will require documentation for reimbursement.

 

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6. "Are there exclusions I should be aware of?"

Insurance policies come with fine print, and not everything is covered. Knowing exclusions before you need to file a claim can prevent major headaches.

Ask specifically about exclusions for:

• Earthquakes (requires separate coverage)

• Mold damage

• Termite or rodent infestations

• Wear and tear (insurance covers sudden events, not maintenance issues)

Pro Tip: If your area is prone to earthquakes or wildfires, consider adding supplemental coverage for these risks.

 

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Final Thoughts

Being proactive before you sign up for insurance ensures you’re properly covered when the unexpected happens. Disclose everything valuable, ask the tough questions, and don’t assume your standard policy covers everything.

 

 

Disclaimer:

This blog is intended for informational purposes only and does not constitute legal or financial advice. Tugboat provides information and support, but we are not licensed public adjusters or attorneys. We do not negotiate or adjust claims on your behalf. All advice given is intended to empower you in managing your own claim, but it is ultimately your responsibility to pursue and handle the claim. Tugboat is not responsible for claim outcomes. Additionally, our tools are provided based on the information you provide, which may be incorrect or incomplete. Always consult a licensed professional for case-specific guidance.

Need expert guidance on a homeowner’s insurance claim? Tugboat Claims is here to help!