5 Common Homeowners Insurance Questions Answered

Homeowners insurance policies vary among homeowners, so it’s important to know what’s included in a standard policy before purchasing coverage. The following questions are among the most commonly asked regarding home insurance. 

How Does Home Insurance Work? 

Home insurance works like most insurance policies. In exchange for an insurance premium, you’re given financial assistance by your insurance carrier to help with accident-related expenses. There are a few different types of home insurance that you can buy, and you may be able to tailor your coverage further to secure additional lines of coverage depending on your needs. If you experience a covered loss at any point during your policy’s term, you may be able to seek financial assistance in recovering from that loss through your home insurance policy.  

How Much Home Insurance Do I Need? 

Like most states, Arkansas does not require you to carry homeowners insurance by law. Despite this, if you’ve financed your home, your lender may require you to carry coverage. Determining how much coverage you need can be complex and is a decision that should be made with the help of a qualified insurance agent who can evaluate your risks and exposures. Generally, it is recommended that policyholders carry coverage equal to 80% of the home’s total replacement value. Carrying sufficient coverage may offer significant financial protection against costly home-related incidents. 

How Do Home Insurance Claims Work? 

If you experience a loss, which is an unexpected incident as defined in your policy, be sure to call your insurance agent as soon as possible to discuss your claims filing options. If you decide to file a claim, depending on the claim type, your insurance carrier will likely send a claims adjuster to investigate the incident. If your claim is approved, you may be reimbursed for the damage and recovery expenses, or the insurer will remit payment to the appropriate parties for damages resulting from the accident. Every insurer handles claims differently, so be sure to work with your agent to learn more.  

How Many Home Insurance Claims Can You File? 

There is no specific limit to how many homeowners insurance claims you can file. However, filing multiple claims in the same coverage period can lead to increased rates and even canceled coverage. Canceled coverage may lead to difficulty finding an affordable policy with another insurance provider. 

Where Can I Get Quality Home Coverage?  

If you live near Jonesboro, Arkansas, the experienced agents at SunStar Insurance of AR can help you learn about homeowners insurance and assist you in deciding on the right policy. 

Call us today at 501-225-3454 for additional information. 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.