What Questions Should You Ask Before Buying Insurance?

Before buying any insurance policy, you should ask enough questions to understand exactly what you are paying for, what is excluded, and what happens when you need to use it. The time to discover a gap in coverage is before you buy — not after a loss.

Questions about coverage

• What exactly is covered and what is not? Ask for a plain-English explanation of covered perils and exclusions. Do not assume anything is covered just because it seems like it should be.
• What are the coverage limits? Know the maximum payout for each type of coverage. Ask whether limits are per occurrence or per policy period.
• Is this replacement cost or actual cash value? This determines whether you get enough money to replace what you lost or just its depreciated value.
• Are there sub-limits? Many policies cap payouts for certain categories like jewelry, electronics, or cash at amounts much lower than the overall policy limit.

Questions about cost

• What is the total annual premium? Make sure you are comparing annual costs, not just monthly payments, since billing schedules can obscure the true cost.
• What discounts am I eligible for? Ask about bundling, claims-free discounts, security system discounts, and any loyalty or professional discounts.
• How will filing a claim affect my rate? Understand the potential premium impact before you need to file.
• What happens to my rate at renewal? Some introductory rates increase significantly in year two. Ask about rate stability.

Questions about the claims process

• How do I file a claim? Know the process in advance — phone, app, or online — so you are not scrambling during a stressful event.
• What is the typical timeline for claims? Ask how long it usually takes from filing to payout for common claim types.
• Do I get to choose my repair shop or contractor? Some policies restrict where you can get work done. Know this before you need repairs.

Questions about the company and agent

• What is the insurer's financial rating? A company's AM Best rating tells you how likely they are to pay claims. Look for A-rated or better.
• How will my agent support me during a claim? A good agent advocates for you. Ask what level of involvement you can expect.

What Truscott recommends

Never buy insurance based on price alone. The cheapest policy is often the thinnest. At Truscott, we answer all of these questions before you sign anything, and we put your coverage in writing so you always know where you stand. Request a Truscott coverage review and come with your questions — we welcome every one of them.