Buying a new home can be stressful, and going into the process without knowing how your insurance will change can be even more nerve-racking. According to the Insurance Information Institute, being an informed consumer means not only reading your homeowner’s insurance policy closely but also asking experts what constitutes the right type, and amount, of coverage you need for your home, according to the Insurance Information Institute.

Before buying a new policy, or renewing an existing one you should ask your agent these questions so that you leave feeling informed and sure of the decision you make for your home.

What is Your Deductible & Policy Coverage
The first thing you’ll want to ask is what your deductible will be and what your policy covers. Your insurance company will compensate you if lightning, hail, windstorms, smoke, vandalism, or an explosion damages your home. Your policy will most likely also cover the losses you incur in the event a burglar hits your home.

What About Damage Caused By Earthquakes or Flooding?

Always Ask about Special Circumstances Insurance. What About Damage Caused By Earthquakes or Flooding? Flooding and earthquakes are not included among the perils covered by a standard home insurance policy. There are separate insurance policies for such disasters. Other perils that standard home insurance does not cover include intentional damage or loss neglect, power failure, war, or a nuclear explosion.

What Does Liability Coverage Mean?

All standard home insurance policies include liability coverage, which means you’re covered in case a visitor suffers an injury within your property and files a claim. It will also kick in if your child or any member of your family damages a neighbor’s property while playing.

What Is An ALE?

When your home suffers damage that renders it temporarily uninhabitable, you and your family will have to check into a hotel, eat out, and incur other expenses while repairs are ongoing. Such expenses will be covered by the ALE or additional living expenses feature of your homeowner’s insurance policy.

Will I Pay Less For Homeowners Insurance If My Home Is Old?

In the eyes of an insurance company, the risk of an older home sustaining damage to its structure and fixtures is high. That’s why insuring an older home will tend to cost you more than if your home was a relatively newer build.

Does Homeowners Insurance Cover My Backyard Shed?

A standard homeowner insurance policy covers not only your main dwelling, but also your backyard shed, garage, and other outdoor structures.

If I Sell My House, What Will Happen To My Policy?

Any homeowners insurance policy is specific to the home in which you reside. When you’re selling your house, you are transferring its ownership, and that effectively cancels your home insurance policy for that home.