Best Homeowners Insurance Agencies in Bloomington

Frequently Asked Questions

• Introduction

  Homeowners' insurance is a type of property insurance used by private property owners to protect their home and property from a range of risks and liabilities. It is also called home insurance.
  

  
  

  All homeowners' insurance policies cover the primary home on a property, meaning that most damage from weather, accidents, vandalism, and other events will be at least partially paid for by the insurance company. Many policies also include coverage for other structures, personal property, and some premises liability.

  
  

  It is not required by law that a homeowner purchases insurance for their property. However, if you have a mortgage, the lender will usually make purchasing a homeowners' policy a mandatory part of the loan process. Since the mortgage lender is essentially selling you the home, they require you to protect the investment.
  

• How should Bloomington homeowners choose home insurance?

  First, a homeowner must determine the type of coverage that is appropriate for their situation. They can select from a number of options for varying levels of protection. They must then consider their budget and compare multiple insurance providers for the best rates. Finally, Bloomington homeowners should buy insurance from a company that is licensed in the state, reputable, and in good financial standing.

• Is sewer backup damage covered under a standard Bloomington homeowner's insurance policy?

  No, you would need to add water damage insurance to your standard homeowner's insurance policy. A rider or endorsement can now provide coverage for sewer backup damage. Clogged pipes, tree roots, municipal sewer failure, and excessive rain are all causes of sewer backup. Call the Bloomington Utilities Division at 952-563-4568 for more information on the city's sewer system.

• How can a policyholder in Bloomington provide more coverage for expensive items with their current homeowner's insurance policy?

  Policyholders in Bloomington can add Scheduled Personal Property (SPP) insurance to their existing homeowner's insurance policy. More expensive items, such as cameras, golf equipment, firearms, and jewelry, may be covered more comprehensively by the SPP. Under standard policies, each of these items may only be covered up to $1,000 to $2,000.

• Will your Bloomington homeowner's insurance premiums increase when you file a claim?

  Yes, it will usually increase each time you file a claim in Bloomington. Premiums are expected to rise by up to 29% for the first claim and up to 60% for the subsequent one. Claim history, amount, and type are all factors that influence premium increases. Take note that the record of your claims is typically kept for five years.

• What should you consider when choosing a dwelling coverage for your home insurance in Bloomington?

  You should first determine how much it will cost to rebuild or repair your Bloomington home if it is completely or partially damaged. Take note that the state's minimum coverage begins at $100,000, with a corresponding average premium of $1,329 per year. A million-dollar home in Indiana will cost an average of $7,423 per year to insure. You must also consider the current prices of building materials and labor costs. Consultation with an appraiser is a good way to get an accurate estimate.

• What determines the price of homeowners insurance premium?

  The premium, or monthly cost, of your homeowners' insurance policy depends on several factors, including the value of your home and amount of coverage you choose. Your credit history and whether the property is in a higher risk area also play a role.