Homeowners insurance protects your house against misfortune. Therefore, choosing the right coverage and incorporating lifestyle changes as they happen into your plan is essential. To make sure you’re properly covered, below are some important questions to ask about your homeowners insurance policy.

4 Questions to Ask an Agent About Home Insurance Coverage

1. Does Your Policy Cover Replacement Cost or Cash Value?

Cash value is the current value of your property, whether that’s real estate or personal belongings. Remember that your homeowners insurance company will apply depreciation to any property you own, so the older it is, the lower its cash value and the less you'll receive in a payout for a claim. Replacement value pays what it costs in today's dollars to replace the item or return your home to the state it was before suffering damage.

2. Is Your Engagement Ring Fully Covered?

Insurers often limit the amount they'll pay for losses to high-value items. For example, you may need to have your expensive jewelry appraised and called out in the policy. You may need to pay an additional amount to ensure you receive its full value upon making a claim. This is also true of expensive collectibles and artwork.

3.  How Much Liability Protection Do You Need?

Liability coverage pays for if you accidentally injure someone or damage their property. It pays for legal costs arising from the incident, as well. You may need more coverage if you own a swimming pool — which tends to attract neighborhood kids — or if you have a large or aggressive dog. You may also want a higher limit if you have investments, real estate property, or other assets to protect.

4. Do You Need Flood or Earthquake Insurance?

Neither of this is normally included in a standard homeowners insurance policy. If you live in a floodplain or in an area that’s susceptible to earth movement, ask your insurance agent about additional flood, earthquake, or mudslide insurance. Having this kind of protection in place will provided added peace of mind that no matter the weather, you’re covered.

To have a friendly, experienced agent help you design the ideal homeowners insurance policy, contact Taake Insurance Agency in Columbia, IL. They have served individuals and businesses throughout Monroe County for more than 40 years. They also specialize in auto, health, farm, and life insurance. Visit their website to learn more about the company or call (618) 281-7656 to request an insurance quote.