7 key questions to ask when you buy house insurance

Finding the right house insurance policy can be daunting. Before you buy, here are seven key questions to ask to ensure you get the best coverage for the buck.
Finding the right house insurance policy can be quite a daunting process. One of the first things you need to do is compare insurance quotes. By shopping around, you can save thousands on premiums in the long run. Start by doing some initial research online. There are several online comparison sites that provide instant, free quotes from competitors that are all eager for your business.

Some of the insurance industry terms and policy restrictions can be confusing. Before you start calling insurance companies (and you’ll want to call several) be prepared to ask at least these basic questions:

Every insurance company uses its own industry-approved calculation method to arrive at this figure. Ask how your calculation was made and what would be covered. Remember that your rebuild cost will have a significant impact on the premium you pay.

Many policies cover contents, but renters and landlords, in particular, will want to be vigilant about this question.

Not every policy covers these things, believe it or not. Without coverage, you could incur huge costs when disaster strikes. Always double-check to ensure your policy covers water damage or sewer damage. If not, decide if it's something you require, and consider if you need to add and pay for extra coverage (which is also known as a "rider").

Sometimes better deals can be had by bundling home and car insurance, for example.

This means that the cost to rebuild your home is covered, regardless of the set amount stated in the original policy.

Insurance companies typically offer three types of policies, but they don’t always mean the same thing from company to company. Generally speaking, a comprehensive policy offers full coverage. A broad policy offers average coverage, and a fire policy offers basic coverage. It’s important to ask just what each company offers under each type of policy.

You may have certain things that are really important to you (special pieces of jewellery, for example), so you’ll want to make sure your policy covers them. Most policies set a maximum amount on what they’ll pay to cover certain items, and you’ll want to ensure the coverage you have is sufficient for your needs.

With so many options on the market, it really is in your best interest to shop around for the right policy. Getting the answers from a knowledgeable insurance expert will give you peace of mind and the deal that works best for you.