For Immediate Release:
July 2, 2025
10 Smart Questions to Ask Your Insurance Agent
By Oklahoma Insurance Commissioner Glen Mulready
Being informed is one of your biggest lines of defense when it comes to preparedness. Recently, I explained how to avoid being underinsured, and an integral part of that is reviewing your homeowners policies with your agent to know exactly what is and what is not in your coverage. Having a conversation about the intricacies of insurance can be daunting, and you might not know where to begin. I want to give you a starting place to guide you in understanding your policies with these 10 questions to ask your insurance agent.
Basics
- Do I have replacement cost or actual cash value coverage?
Many homeowners do not know if they have replacement cost (the cost of replacing property with like, kind and quality without depreciation) or actual cash value (replacement cost minus depreciation).
- Is my dwelling coverage limit enough to fully rebuild my home at today’s construction costs?
Construction costs change over time, so it’s essential to consider this when determining your coverage limit. In the last few years, we have seen a significant increase in construction costs due to inflation.
- Do I have extended or guaranteed replacement cost coverage?
Extended replacement cost coverage provides an additional percentage on top of your building limit. Guaranteed replacement cost is the cost of replacing your home with the same kind and quality at the time of loss. These coverages are more often offered as a separate coverages.
Other Structures & Personal Property
- Is my detached garage, fence, or shed fully covered under ‘other structures’?
Ask your agent this question if you have any additional buildings on your property to insure. Typically, a homeowners policy provides an amount equal to 10% of your dwelling coverage.
- Does my policy cover my belongings at replacement cost, and is the coverage limit sufficient for everything I own?
Creating or updating a home inventory is a simple way to estimate the cost of replacing your belongings. List each item along with its value and serial number. Also, documentation with pictures or video is very helpful at the time of the loss.
Loss of Use
- If I can’t live in my home during repairs, what will my policy pay for temporary housing? A typical homeowner’s policy provides coverage equal to 20% of your dwelling coverage for loss of use/temporary housing.
Disaster Protection
- Am I covered for tornadoes, wildfires, hail, and windstorms without special deductibles or exclusions?
It is now fairly standard to have a separate wind/hail deductible. Each peril might come with different deductibles or exclusions. Be sure to check with your agent.
- Does my policy cover sewer backup or flood damage?
A standard homeowners policy excludes coverage for flood. Understanding this will help you determine if you require a separate flood policy. Sewer backup may be covered if purchased on the policy and is caused by blockage in sewer system. If a sewer backup is caused by weather, it could be considered flood damage.
Liability
- Is my personal liability coverage limit high enough to protect my assets if someone is injured on my property?
Your liability coverage covers legal and financial obligations in case someone is hurt on (or off) your property and often applies if you cause damage to someone else’s property.
Staying Current
- How often should we review and update my coverage?
It’s a good idea to review your insurance policy at least once a year, but your agent can help determine if more frequent reviews are needed based on your specific situation.
Understanding exactly what your policy covers puts you one step ahead of life’s unexpected events. If you have questions about insurance or need assistance, contact the Oklahoma Insurance Department (OID) at 800-522-0071 or visit oid.ok.gov.