Florida Homeowners Insurance Information

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.

  • Premiums have increased 38% since 1995 due to a decade of natural disasters, terrorist attacks, and neglect of property.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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

Florida Insurance Fraud

Florida Wind Insurance Incentives

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