06 Aug How Can Homeowners Insurance be Beneficial?
While homeowners insurance isn’t always required by law depending on where you purchase your home, it most certainly is required by mortgage lenders. Being required to purchase coverage may initially appear to be an inconvenience, but there are many benefits to insuring your home. We previously covered what to check for in your home insurance policy. Today, we look at the functions, coverage options, and benefits of homeowners insurance.
The Main Functions of Homeowners Insurance
Unfortunately, most homeowners insurance policies do not cover all possible causes of damage to your home and personal property. The most common basic property insurance policies will only cover damage from fire, hail, wind or theft. Separate insurance is generally required to cover damage from household disrepair, floods, mold, earthquakes or acts of war. The main purpose of basic homeowners insurance is to help you cover the costs of repairing damage to your home in the case of the most common causes of sudden home damage.
Despite some of the limitations, it’s still worth it to invest in homeowners insurance—especially in hurricane-prone Florida. Understanding homeowners insurance and your specific policy will save you from much stress and expense.
What is covered by your insurance in the event of damage will depend on your policy. Standard insurance coverage will include dwelling protection, which refers to your home and any attached structures. From there, your basic homeowners insurance policy may or may not include protection for personal property items, additional structures not attached to the home, living expenses for temporary relocation, liability for harm caused to others, or coverage for medical payments for accidental injury to yourself or your family.
Homeowners insurance makes sure you don’t have to take on the full burden of repair and replacement costs. The amount you’re responsible for depends on your coverage limit and deductible. Like all insurance, the higher your premium payment, the lower your deductible—meaning the less you have to pay out-of-pocket. Some causes of damage may require separate deductibles, depending on your policy.
Hurricanes and Homeowners Insurance
As a Florida resident, it’s essential to be prepared for potential hurricanes. Living in Florida does not automatically guarantee your basic homeowners insurance will cover the full extent of hurricane-caused damage to your home, however. For example, you may need to purchase additional windstorm and flood insurance options.
It’s also important to keep your home maintenance and repairs up-to-date, as basic insurance will not cover damage that slowly built up over time, such as leaks, even if an event like a hurricane has made the damage much worse. Adding coverage for other free-standing structures on your property—like a tool shed or fence—is also worth considering when preparing for a hurricane.
Having the right homeowners insurance can save you and your family from significant expenses in the event of a hurricane or other natural disaster.
What to Do If You Make Renovations
Home renovations are especially common, whether they are for aesthetic or repair purposes. It’s important to maintain the safe, functional conditions of your home. However, all home renovations must meet code standards, or else they could cause harm to others or create further damage in your home. Homeowners insurance will only cover unexpected damage caused by other forces—not damage caused by you.
Be sure to always employ the services of a certified and experienced contractor to make renovations in your home. If you plan to add new structures attached to your home (such as a garage, second floor, another room, etc.), discuss insurance coverage options with your homeowners insurance provider first. You don’t want to build a garage, only to later find out you won’t be able to insure it properly.
Renovations may also potentially change the cash value of your home, which will impact the cost and coverage of your homeowners insurance policy. This is another important reason to notify your insurance provider before making renovations. You will need to discuss whether to insure your home at replacement cost (more expensive, with more coverage) or actual cash value (less expensive, but less coverage).
Florida Homeowners Insurance
If you’re in the market and ready to purchase your new Florida home, it’s important to have the right insurance coverage. Protect your home and your family with homeowners insurance from Strassman Insurance Group. Based in the heart of Central Florida, we can offer insurance plans to cover the specific needs of your individual home. Contact us today to discuss your options.