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3/26/2012 - Questions to ask before buying a home insurance policy

Consumers should ask questions of their insurance provider.

The Insurance Information Institute recently released a list of questions consumers may want to ask before securing a homeowners insurance policy.

"Besides knowing the basics of what a standard homeowners insurance policy covers, consumers should ask a series of questions, and receive satisfactory answers to each of them, before buying a new policy, or renewing an existing one," said Michael Barry, vice president of media relations for III.

For example, one of the most important questions to ask is how much it would cost to rebuild a home should it be destroyed. A home insurance provider should be able to determine this, considering various factors, such as the construction materials used when it was built, III indicates.

Another question homeowners should ask is how much their personal belongings are worth. Once this is determined through a home inventory, most insurance providers have personal property coverage plans that are between 50 and 70% of what the home is worth, III notes.

Other pertinent questions to ask include how much liability protection to get, what is the coverage for additional living expenses and whether homeowners qualify for any rate discounts.

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