You do not necessarily have to have a Florida homeowners insurance policy in order to own a home. In actuality, many of the older homes do not have any sort of insurance at all. This is not the most effective way to do something. The thing is when you are constructing or purchasing a home without having to borrow money, no one will force you to have insurance. When you acquire a condominium, the structure of the condo is insured under the owner’s insurance policy. If you are not concerned regarding your personal possessions, you do not have to acquire a Florida homeowner’s policy.
If you are seeking for mortgage to build or purchase a home, the lender will require evidence that you have an insurance policy in place. The final mortgage papers cannot go through unless you can present evidence of the insurance and a copy of the policy placed in your file. The lender will also demand his name to be listed on the policy. In an event that the home is totally destroyed by one of the perils listed on the insurance policy, the payment check will be issued out jointly to you and the lender. The check cannot be cashed without the signatures of the two parties because it is purposefully intended to pay off what you owe on the mortgage. If you rent and do not own a home, you can have a policy that includes the belongings of the home or apartment. In an event of a disaster, your insurance policy will pay you for the items that have been destroyed or damaged.
Some towns or city laws require homeowners to have insurance. Most of them take it on themselves to issue policies for their own protection and satisfaction. Many people believe that acquiring insurance is expensive and they cannot afford it. Generally, a typical policy costs between $400 or $500 per year and you can pay it off annually or monthly as you wish. If you want to payout monthly payments of your insurance premiums, a small finance charge will be added to the total which would generally be the monthly service fee. Majority of the policies are for one year terms. If you believe you are paying out too much, you can search for other companies who may be able to give you greater coverage for the same or lesser cost.
Not having insurance is not advisable. A lot of things can happen which might destroy your home and leave you penniless if an accident should occur. If someone were to slip and fall on your property, you will be responsible for the hospital and other medical bills if they sue you. A homeowners insurance policy will help pay for all these events, leaving your finances unharmed.