Your home is likely your most valuable asset, so protecting it makes sense. As such, you can think of homeowners insurance as an investment to protect your financial future. Before buying a premium-only policy, ask your insurance provider these five questions to make sure you’re getting the coverage you need.

# 1 – What does (and does not) cover the policy?

The most important part of your home insurance is the policy itself. What exactly will it cover? What happens if your lawn mower is stolen from your garage? Will you get the full value of the purchase or the depreciated value? If you accidentally cause an injury to someone outside your home, will your policy cover it? Finding out exactly what your policy covers will help you decide how much and what type of insurance to buy.

# 2 – How much coverage do I need?

An insurance agent will often ask you to provide a list of all of your possessions. This is called a home inventory, and it can go a long way in the event of a disaster, fire, or even theft. The best rule of thumb is to appraise all of your belongings and then purchase an insurance policy with coverage that exceeds this amount. It will also help you decide if you need to purchase riders, which are additions to your policy that protect unusual items, such as very expensive jewelry or expensive paintings.

# 3 – How much will it cost to rebuild my house?

Part of your insurance policy will focus on your real home or any damage that may occur to the structure of your home. Keep in mind that because real estate often appreciates in value, and often significantly, you’ll want to make sure you buy a policy that covers the cost of rebuilding your home, not one that just covers the purchase price.

# 4 – What types of claims have been made on my home in the past?

Knowing and understanding what types of claims have been made on your home in the past can help you decide what type of coverage you need right now. For example, if your home is on a floodplain and has been subject to flooding once or twice in the past, you will want to purchase separate flood insurance. Along the same lines, if severe storms have been problematic in the past, they are likely to be problematic in the future as well.

# 5 – What happens when something happens?

Lastly, it is important to know what to expect when it comes time to file a claim. Will you be able to speak directly to your local agent? Will they come to assess the damage immediately or will you have to wait a few days? Will the company house your family in a hotel until repairs can be made? Understanding things like this will not only help you make a better decision regarding your policy, but it will also give you some peace of mind.

When you have the answers to all these questions, you will have the information you need to make the right decision. Make sure you understand what is covered and what is not covered, how the insurance company values ​​your home, and how your insurance company will treat you when you need to file a claim.