Shopping for homeowners insurance should be based on more than just the best price. Understanding the coverages and exclusions in the policy you purchase can be the difference between having a loss covered or paying for the loss out of your own pocket. The Wall Street Journal provides some tips you should consider when buying homeowners insurance:
- Use a reputable independent agent with access to a range of insurers and coverage options.
- Ask about exclusions and wording differences across policies.
- Ask about coverage for water damage from sewer or pipe problems, and whether damage to the foundation is covered, limited or excluded.
- Ask which items will be paid at “replacement value” versus “actual cash value.” http://on.wsj.com/t5iNfV