Typically, you need enough insurance to cover the structure of your home, your personal possessions, the cost of additional living expenses if your home gets damaged and you have to live elsewhere during repairs and your liability to others.
You should demand enough insurance to cover the cost of rebuilding your home at current construction costs. Do not incorporate the cost of the land and do not form the basis of your rebuilding costs on the price you paid for your home when you bought it. The cost of reconstruction may be more or less than the price you paid or the price your home could be sold for in today’s economic market.
Several banks oblige you to purchase homeowner’s insurance to cover the sum of your mortgage. If the limit of your insurance policy is based on your mortgage, you should make sure it is enough to cover the cost of reconstructing. To find out construction costs in your society, call your local real estate agent. Some factors which conclude the cost of reconstructing your home are local construction costs, the square footage of the structure, type of exterior wall frame (brick or stone), style of the house, number of bedrooms and bathrooms, type of materials used, and pools or garages, etc.
An ordinary Florida homeowner insurance policy provides coverage for calamities such as damage due to lightning, explosions, fire and theft. They do not include coverage for earthquakes, floods nor damage caused by absence of regular maintenance.
Your Personal Belongings
Most homeowner insurance companies provide policies for coverage of your personal belongings. However, they may not cover the entire amount of your belongings. For increased compensation, you will be required to pay higher premiums. To decide if this is adequate coverage, you need to plan a home inventory. This should account for all things you own and data related to the cost to restore these items if they were stolen or destroyed by a calamity such as fire. Please refer to our article Floater and Endorsements as when you are conducting your home inventory, it is important to note that many personal belongings have lower limits of liability on your insurance policy.
If you think you need more coverage, contact your agent or insurance company representative and ask for higher limits for your personal possessions.