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Your Florida Home, Your Insurance Company and You
Do you know
everything you need to know about insurance for your home when it comes
to buying homeowner's insurance? The average home owner discovers he/she
has little or no knowledge, or understanding of his/her basic Florida Homeowner's Insurance policy. Making the wrong decision regarding the
type of insurance a home owner buys to protect their home investment
could cost you thousands in assets. If you don't know the right
questions to ask or how much insurance you should have protecting your
investment you could find yourself in a homeowner's Insurance
nightmare. Many people spend more time and research when planning a
vacation, then time spent choosing a company for homeowner's insurance
to protect the largest investment, their home. Just ask anyone recently
impacted by hurricanes, tornados, fire, theft or sink holes in Florida if they
should have spent more time examining their current homeowner's policy.
Ask them if they had enough insurance to cover their losses.
Here are a few tips to remember when buying your next
homeowner's policy.
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Premiums
have increased 38% since 1995 due to a decade of natural disasters,
terrorist attacks, and neglect of property.
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The type of home
you buy ( frame, concrete block or Mobile/manufactured home), as
well as, the age can determine if you will be paying a higher
premium. Or maybe your home is built of more exotic materials and
considered more expensive to replace. The underwriting guidelines
insurance companies have to follow could determine if they can sell
you a homeowner's policy or not based on the type of home you own.
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The recent
outbreak of Mold found in today's homes have forced many insurance
companies to exclude mold coverage entirely or all but a few types
of mold from policies.
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Do you understand
all the Homeowner's endorsements attached to your policy? Some
states have restrictions on natural disaster cause of loss problems
such as wind along Florida's coastal communities or fires in some
Western states. You should know what all the policy endorsements
cover or not cover because each company and state have their own
philosophy and rates on how they will insure common causes of loss.
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You should
consider which Homeowner's policy is right for you. Do you need
Named Causes of Loss or Risks of Physical Loss coverage? Knowing
which you need and what it covers is very important. Some states do
not permit the sale of some policies. Most homes are insured by
Basic Home Owner's coverage which insures both the home and personal
property. Just knowing what type policy you have won't protect you
100%. You should know what the replacement value stated in the
policy is to avoid any kind of "under-insurance" penalty should you
face a loss. Are any outbuilding covered? How about additional
living expenses? For most home owner's the limit of coverage
provided by the standard policy fall short of what you will need in
the event of a loss.
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Did you know
there is an insurance policy available which offers the best
coverage? With Actual loss sustained coverage there is no limit to
worry about. A good agent will discuss the type home you have and
build the right policy for you simply by asking the right
questions. Homeowner's Insurance policies should be written
specifically for each home or property since no two homes are alike.
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How can you save
money on your Insurance premium? Deductibles save money.
Here are a
few ideas on how to save you money
- Shop around for the best
insurer and check their financial ratings. We can provide you with a
list of Florida Homeowners insurance agents.
- Raise your deductible.
- What you paid for your house and what it might cost to rebuild
are often confused by the average home owner. You should not take
into account the value of the land when buying insurance since
insurance does not cover your land value. By buying more insurance
than you need you will be paying more for the coverage.
- Combine
auto and home with the same insurer.
- Ask the agent about steps
you can take to make the home more disaster resistant. Some
companies offer discounts and the improvements could save you on
other living expenses like your electric bill, etc.
- Invest in a
home security system, smoke detectors, dead bolt locks, sprinkler
system, etc since some companies offer as much as 15-20% discounts
on the premium.
- Ask if the companies offers any other discounts
or if there is group coverage available through your employer. Look
for private insurance if you are in a government plan or live in a
high risk area.
- Stay with the same insurer because some companies
offer discounts for being a long term policyholder.
Florida Home Owner's Insurance Information Links
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