Homeowner’s insurance is one of those bills we hate to pay, but we might regret it if we do not. There are a number of factors you should consider when purchasing any product or service, and insurance is no different from it.
When purchasing homeowners insurance in Florida, you should first determine the amount and type of insurance you will be requiring. Typically, the coverage limit of your house should equal 100% of its replacement cost. For instance, if your policy limit is less than 80% of the replacement cost of your home, just know that any payment from your insurance company will be less than the full cost to replace your home. This means that you will have to remunerate the rest of the amount out of your own pocket.
You should decide beforehand about any further agreements you would like to attach to your policy. For example, do you require an earthquake policy or jewelry policy?
You should make sure you are insured for 100% replacement cost. If there is a mortgage, the bank will urge that you have coverage for 100 percent of your home’s replacement cost. Replacement cost is not the market value but it is the cost to completely rebuild your home in an event of a total loss. Since coverage varies from company to company, it’s best if you work with your agent to make sure that if you do suffer a total loss, your policy will enable you to be completely covered.
Since you will be purchasing an insurance policy related to your home, no matter what some direct-to-consumer companies might say, this is not just something you can cover with a phone call. You need to call your agent and make them look thoroughly inside and outside of your house to look for potential loss that might occur in the future. Are there hazards? Does something need to be refurbished to make the home safer? Note that this is not to judge your lifestyle nor your housekeeping, but to make sure that there are no concerns that might cause a company to drop you for underwriting reasons, or to not pay your claim.
Make sure to get the most out of a liability coverage. A homeowners policy is a complete package which includes coverage for your home’s structure and liability that covers anybody that comes into your home or comes onto your property.
You should consider added protection for your high-value items. If you own exclusive pieces of jewelry, high-end electronics, expensive furs, limited fine arts or any other high-value items, make sure there is full coverage on those items. A regular homeowner’s policy does incorporate coverage for all of these items but the limits are low and are subject to your policy deductible.
Do not withhold on certain coverage as it is comparably reasonable to have a higher limit of liability and the limit of medical payments to others. These coverage are there to protect you and your assets and to take care of accidents that happen on, or to your property. You can pay slightly more over the course of a year and know that you have sufficient coverage in case something dreadful happens.