Questions to ask before you buy a policy

Most insurance conversations run on rails. The agent asks the questions the quoting system needs, you answer them, a price appears, and the meeting is over.

Nothing about that process surfaces the things that decide whether the policy works when you need it. Those come out only if you ask, and the questions that produce them are not obvious.

The NAIC’s advice is to “ask your agent and keep asking until you are satisfied.” These are the questions worth spending that persistence on.

About the coverage itself

1. What would this policy not cover?

The single most useful question in insurance, and the one almost nobody asks. A good answer is specific and slightly uncomfortable — flood, earth movement, sewer backup, wear and tear, whatever applies to your situation. A vague answer means either the agent does not know or does not want to say, and both are worth noting.

2. Is this quoted at replacement cost or actual cash value, and does that apply to everything?

Two questions in one, deliberately. A policy can be replacement cost overall and still settle a roof or contents on a depreciated basis. Ask specifically about the roof.

3. How was this limit chosen?

Not “is this enough” — that invites reassurance. “How was it chosen” asks for the reasoning. A good answer describes a calculation or an estimate. A poor answer is that it is what you had before, or what most people take.

4. What is my deductible — and do I have more than one?

Many policies carry a separate deductible for wind, hail or named storms, often calculated as a percentage rather than a flat amount. If you are in a region where that applies, this question is worth more than any other on this list.

About the money

5. How are you paid on this?

Reasonable, and it should not cause discomfort. The NAIC notes that agents “receive a commission from the insurance company,” while a broker representing you “generally charge[s] a fee for their services.” Knowing which arrangement you are in is basic.

Source: National Association of Insurance Commissioners — How to choose an insurance agent · accessed 2026-08-04

6. If two carriers fit me equally well and one paid you more, what would you do?

The answer matters less than the reaction. An agent who engages with the question has thought about it. An agent who is offended by it has told you something.

7. Is there an agency fee on top of the premium, and what is it for?

Some agencies charge one and disclosure requirements vary. It should be stated before you buy, not discovered on an invoice.

About what happens next

8. What would make this policy non-renew?

Answers might include a roof reaching a certain age, a claim, a change in the carrier’s appetite for your area. Knowing the triggers in advance turns a future shock into a plan.

9. Who handles a claim — you, or the carrier?

Both answers are normal. What you want to know is who to ring at 7am on a Sunday, and whether the agency stays involved after the claim is reported or hands it off entirely.

10. When will somebody look at this policy again, and what would prompt it?

The honest answers range from “at every renewal, and here is what we check” to “when you call us.” Both are legitimate. Only one of them catches a roof settlement basis quietly changing.

11. Will you put in writing anything I decline?

The closing question, and the most revealing one. It asks whether the agency documents its own recommendations.

What a good conversation feels like

It is slower than you expect, and it involves being asked about things that are not on a form: a teenager approaching driving age, a renovation, a home business, a rental property, a pool, a trampoline, whether anyone would struggle financially if you died.

It also involves at least one “I do not know, let me find out.” Insurance is state-regulated, policy forms differ between carriers, and anybody who answers every question instantly is either extraordinarily good or not really answering.

And it ends with something in writing.

What to do

Take the four questions from the coverage section into your next conversation. Those four — what is not covered, how it settles, how the limit was chosen, and how many deductibles you have — will tell you more than an hour of comparison shopping.

Then ask the last one, about documenting declines. Every Client First Certified agency has signed a standard committing to exactly that, but the question is worth asking of anyone.

If the answers are good, the price is a reasonable thing to negotiate. If the answers are poor, the price is not a bargain — it is just a smaller number attached to something you do not understand.