The Importance of Reviewing Your Homeowner’s Insurance Policy

Many people have the habit of signing documents without actually looking through them first. That is because it sounds like a tedious and boring thing to do, going through terminologies that we might not even understand. That is one of the biggest mistakes that most of us do, and at times it ends up affecting us negatively rather than positively. In this article, we are going to be discussing the importance of reviewing your homeowner’s insurance policy. In Florida, not every homeowner is required to have an insurance policy, although mortgage lenders encourage it so that they can have some security against their investment. It is also important should an unexpected disaster occur, and that is why it should address things like kind of damages, repairs and lost items. Below are what the policy should have:

  • Declarations Page:  This is a summary of everything that is in the insurance policy, and it should contain: the policy number, policy period, the name and address of the person insured, the name and address of the insurance agent, the name and address of your mortgage company, the limits placed on each type of coverage, the amount of the premium, the amount of the deductible and the title or number of any endorsements affecting the policy.
  • Definition Page: This page should define most of the terms in the policy, and here you might find that some of the terms might be different from what you originally thought.
  • Section I (Property Insurance): This portion explains comprehensively on the different types of insurance coverage. These are divided into four, including the dwelling, other structures on the property, personal items and possessions along with the loss use of the property.
  • Section II (Liability Insurance): this section deals with personal liability and medical payment to people injured while on your property.

A Startup Guide to Homeowners Insurance in Florida

Still on the topic of home insurance, we will now go ahead and look at a guide to homeowner’s insurance in Florida. We know that there are many people who have no idea how to go about the idea of getting home insurance, but sit back and let us guide you through some of the basics. Most of this information is from Alliance and Associates. Remember that you’re the one that chooses what you want to pay for your home insurance depending on what you wish to cover. There are many companies that you can choose from, and the competition has made the prices come lower. Remember that it is very important because states like Florida are prone to natural disasters like hurricanes and earthquakes, and those could easily leave your hard earned home gone.

The Importance of Reviewing Your Homeowner’s Insurance Policy

Elements of a home insurance policy

  • Coverage for structure of home
  • Coverage for home contents
  • Coverage for other property structures
  • Liability coverage
  • Perils covered
  • Excluded perils
  • Deductible

Extended Replacement Cost Coverage:

With the extended replacement cost coverage, owners of homes are covered for repair and replacement of their homes no matter the depreciation value, including enhanced material and labor costs.

Hurricane Deductibles:

Hurricanes frequent states like Florida, and therefore homeowner insurances come with a hurricane deductible that has to be paid, and it is calculated according to the percentage of the overall home insurance value as set by the state law.

Flood Coverage:

This can be purchased separately since it might not be offered by homeowner’s insurance, and it covers the expenses when your personal property is damaged by flood.

A Primer for Purchasing Home Owner’s Insurance

  • Check your homeowner’s insurance status annually to see if you qualify for lower rates. Putting security systems in place could lower the rates. Discuss such changes with the insurance agent.
  • Go for a security system that has a monthly monitoring system against burglary as this could really bring down your premiums.
  • Get repair estimates from trusted dealers before going to your insurance company for claims. This will give you a rough estimate of what they should pay you for the cost of repair. Also keep receipts for any emergency repairs.
  • Try and ensure everything with one insurance company as this could bring down the rates because you have more than one policy with them. For example, use the same agent as the one that insures your vehicle and you could pay up to 10% or more less.
  • Those with mobile homes can shop around for special homeowner’s policies depending on the age and location of your home. Some even cover it while it’s in transit from one location to another.

Conclusion

Insuring your home is very important as you never know what sort of disaster could strike at any time. None of us likes to think that anything bad will happen to our homes, but it is better not to take the risk and insure our homes.