If you are purchasing a home, you are aware that having basic home insurance is a necessity if you have a mortgage. In fact, the lender requires you to have a homeowner’s insurance policy. And while it may be a requirement to obtain for your mortgage, as a homeowner you should be motivated to have the very best coverage to protect your investment as well.
Homeowner’s insurance may not be the most exciting topic, but you do need to know the basics. Let’s get started:
1. What does basic home insurance cover? A homeowner’s insurance policy is designed to protect their home and personal property. Standard coverage includes the home and personal belongings, as well as liability coverage for any injuries or property damage caused by you or your family which harms another person. Your mortgage company likely requires a minimum amount of coverage, but your policy can be as robust as you choose.
2. What is excluded from my policy? Most standard home insurance policies do not provide coverage for floods or earthquakes. While we don’t have many earthquakes around here, the Florida FEMA flood maps have been expanded and include many residences in the Sarasota area. While a basic homeowner’s insurance policy does not include flood insurance, you will need to procure a flood insurance policy if your property is in any flood zone.
3. Do I need hurricane insurance? In Florida, you are required to have wind insurance, and coverage will be included with your homeowner’s quote and policy.
4. Will my policy pay to rebuild the home if necessary? The cost to rebuild the home may exceed the market value of the home; however your policy typically provides coverage based on market value. Therefore you may not be able to rebuild your home the same way after a total loss. If you intend to live in the property long-term, you may wish to speak to your insurance agent about market value vs. the cost to rebuild; and make sure you have adequate coverage for your needs.
5. Is all homeowner policy pricing basically the same? While you hear “standard policy” you may think everyone’s pricing is the same.
This is not necessarily true – making it important to shop around. This is where working with an insurance broker can be extremely beneficial. We can not only search for the best pricing for you, but help you to understand the differences in service and terms.
6. Does my credit score affect my home insurance premium? In addition to your home, its location, and your personal property, there is another factor which plays into your pricing – your credit score and credit history. As with most transactions, the better your score, the lower the premiums.
7. Can my home insurance company deny a claim? If your claim is covered under your policy, they should honor the claim. However, if you fail to properly maintain the property and damage was incurred (or worse than it would had been if the property was maintained) you may be denied. A leaky roof being ignored is a good example – if you never took any action to repair a damaged roof, your claim of water damage in the home may be refused.
If you are looking into homeowner’s insurance in Sarasota or Manatee County, there is no need to go it alone. Simply call Anderson & Associates Insurance Group and tell us about your situation. We will do the legwork for you, and find the right insurance quote for you.
