Homeowner’s insurance is often discussed on this blog and elsewhere on the internet. Every homeowner must have a home insurance policy before receiving a mortgage loan from any reputable lender. Even still, a home insurance policy is crucial for knowing that your sizable investment into your future is protected, no matter what matters. If you are a first-time home buyer unaware of what Florida home insurance covers, read this blog to learn some fast facts about the essential components of every home insurance policy.
Basics Of A Florida Home Insurance Policy
A Home Insurance policy is designed with one major thing in mind – protecting your home and personal property from a myriad of threats, such as damage, theft, or destruction. Standard coverage includes the home and personal belongings, with liability coverage included to deal with any injuries or property damage caused by you or your family that harms another person. Most mortgage agreements will have a clause stipulating the minimum amount of coverage needed to acquire the loan, but you can choose any policy that fits in your budget as long as it meets that minimum. Some homeowners prefer paying a higher monthly premium that guarantees all property is 100% protected, while some might opt for a lower premium that only covers the basics.
Florida Home Insurance Intricacies
Some things that you might think are included in a home insurance policy are actually additions that are not included by default in most plans. In fact, some companies may only offer standard insurance policies without the option for the most common additions, namely earthquake and flood insurance. Earthquake insurance is not usually necessary in Florida, but flood insurance can be beneficial, especially if your area was recently affected by flooding in the most recent Florida hurricane season. Mortgage companies may also require flood insurance depending on recent U.S. government maps that provide information regarding flood risks that vary from neighborhood to neighborhood.
Florida law also does not require mandatory hurricane or wind insurance, despite this being a necessity for many mortgage brokers. Florida homeowners can take advantage of Wind Mitigation Inspections, as many insurance providers offer discounts to homes that show hardiness against hurricane-level winds and damages. Because Florida lies in the path of so many hurricanes and the potential for home destruction is always lingering in the background for older homes, insurance companies will sometimes provide discounts of up to 50% if they believe your home, as inspected by a professional wind mitigation inspection service, is unlikely to sustain damages in a severe storm.
Will Insurance Cover All Of My Claim?
Your insurance will cover your claim if your policy clearly states the conditions for payment and those conditions are met. The most common reason a claim is denied is if you are negligent in the upkeep of your home. For example, if your roof is new and in working order, but a hurricane still causes extensive damage, your policy should cover this up to the agreed-upon amount. In a different scenario, if you failed to repair a leaky roof and it grew into a larger issue over time, the company might deny your claim because of your negligence of care of your property.
For first-time home buyers, finding the best Florida home insurance policy can be tricky. You should always work with experienced brokers who can search for the best pricing for you and help you to understand the differences in terms and conditions. Call Anderson & Associates Insurance Group and tell us about your situation. We will do the legwork for you and find the best policy for your unique situation.
