No doubt every homeowner is concerned about protecting his biggest investment from natural or man-made disasters. He should get his home prepared to meet all challenges, especially in a state where natural disasters such as hurricanes, tornados, storms, floods, earthquakes, etc. are more frequent as compared to any other U.S states. Many homeowners are even confused about having homeowners insurance when they opt to apply for a home loan. During the process of finalizing a home loan, the most frequently asked question appears to be “Do I need affordable homeowners insurance near me if I apply for a new home loan?” For affordable homeowners insurance it is necessary that you do two important things as mentioned below;
1. Have your home inspected
2. Shop for homeowners insurance in Florida
The home inspection should cover the mechanical and structural condition of the house, including the roof, plumbing, heating, air conditioning and wiring. Your home purchase offer should be contingent on the reports of the certified home inspector so that if any major issues found, you can walk away from the house immediately and if minor issues are found, you may ask the seller to fix them or adjust the home price.
The lender will appraise your home as part of the underwriting process. So, when you get the appraisal, start looking for ” affordable home insurance near me .”
Two Types Of Florida Homeowners Insurance Coverage
1) Replacement-Cost Policy:
It covers the current cost to replace your beautiful home. For example, if you purchase an older home with unique molding features, so because of its uniqueness, the cost to restore it may be higher. A replacement-cost policy is more expensive than actual cash value policy and runs about 10 percent more than Actual Cash Value ACV policy, but it will also cover the cost of rebuilding.
Click here to read more about your replacement cost
2) Actual Cash Value policy:
This type of insurance policy insures the house and its valuable contents as per their market value. As we have read above that cash-value policy is less expensive than a replacement-cost policy, ACV policy will reimburse a homeowner only for the depreciated cost of his or her items. For example, if your television was 8 years old, your insurance company would probably pay only a portion of the cost of a new one.
How to get the Best Affordable Home Insurance Near Me?
Whichever homeowners insurance policy in Florida you choose, be sure to ask your agent about safety features such as deadbolts, security systems and storm shutters that can be installed to help you reduce your insurance premiums.
Should you have any questions related to your Florida homeowners insurance coverage, Diverse Insurance Group’s professional insurance underwriters are awaiting your call!
Here are some tips from our Florida Insurance blog that will help you reduce homeowners insurance premiums in Florida.