Insurance

Important Home Insurance Facts for Homeowners

Insurance makes you think about bad things: car accidents, medical problems, emergency home repairs, etc. But even if dwelling on what could happen, protecting yourself from some of life’s biggest surprises is important.

Protecting your home involves more than safeguarding against theft and damage—it’s also about feeling safe in your own home. In case of a disaster, you should be focusing on restoring your sense of stability, and not on money. Here are a few things you should know about Florida homeowners insurance.

  1. What is covered?

A typical Florida homeowners insurance policy pays for damage to your possessions and your property in case of vandalism, theft, fire, and certain storms. Like renter’s insurance, it covers injury of other people on your property. It also covers the cost of shelter in case you’re temporarily displaced from your house. Moreover, it protects belongings outside your home, including valuable items stolen from your car oran expensive laptop lost by an airline, for example.

  1. What is not covered?

Standard policies have exclusions, including flooding, defective maintenance, bad workmanship or repair, faulty zoning, government action, nuclear hazard, war, power failure, and earth movements (sinkholes, earthquakes, landlines). Windstorms such as tornadoes are usually covered, although insurers may exclude hurricanes and tornadoes in some high risk areas.

In the case of water damage, water from below (ground flooding or backed up sewers) generally isn’t covered, but water from above (burst pipes in an upstairs apartment or rainwater) usually is. If you live in a place that is prone to earthquakes and floods, consider getting supplemental coverage.

  1. Why should you shop around?

Before buying a Florida home insurance cover, conduct research by reading online reviews or getting personal recommendations. Also, make sure you research your insurance agent in order to ensure that they will be trustworthy and helpful in case you make a claim. Reviews will help you find a trustworthy agent.

  1. Which safety measures can reduce premiums?

Taking preventative actions can help you lower your insurance quote. Some of the measures that can get you discounts include smoke detectors, fire alarms, burglar alarm systems, and deadbolts among others.

Florida home insurance providers peg your premiums on how much risk they take on. Therefore, in order to considerably lower the premium, reduce your liability risk by taking smart preventative measures, such as building a fence around your home or covering your swimming pool to reduce the likelihood of a neighbor’s kid wandering into your property and falling in.

  1. How is replacement coverage different from market value?

As a homeowner, you should understand the distinction between replacement cost and market value. Replacement cost covers replacement or repair of your entire home. Market value refers to the amount someone would pay to purchase your home and the land in its current dilapidated condition.

If you have a sizable emergency fund, you can obtain more substantial coverage and still pay affordable premiums by purchasing a policy that covers more with regard to rebuilding and replacing your property, but with a higher deductible.