Homeowners insurance refers to an insurance policy which provides financial protection in the event your home or property gets damaged caused by a covered peril or in the event of a covered legal action.
Typically, perils which are covered by home insurance include wind, fire, hail, theft and lightning. Although nobody wants to lose possessions or a home due to these perils, this occurrence can happen anytime and unexpectedly. Therefore, if your home is destroyed by fire, what are you going to do to rebuild it? This is the right time homeowners insurance comes to your help.
Homeowners insurance is a security for your home investment. It gives you the right coverage for particular hazards your home may encounter in the future.
However, your home insurance won’t just stop where it is. In the event that one person files a legal case against you because of property damage or accident, you’ll be paying for the lawsuit costs. Once again, homeowners insurance will come to your help. Standard homeowners insurance has liability coverage to give you and your family enough protection against legal cases.
On average, homeowners insurance highlights the following coverage:
- “A” Coverage – dwelling
- “B” coverage – property’s other structures
- “C” coverage – personal content & property
- “D” coverage – loss of use
- “E” coverage – personal liability protection
- “F” coverage – payment for medical bills
“A” coverage is also known as dwelling coverage—a part of your home insurance policy which covers the amount of re-building and repairing your home. Normally, the damage involved is due to a covered peril like wind, fire, hail and lightning. There’s a need for a separate policy to cover losses and damages brought about by an earthquake and flood. These are not included in the covered perils of the standard homeowners insurance.
The cost of dwelling coverage you can buy must be sufficient enough in covering the cost of re-building your home if there is complete loss. This should not confuse you with the value of your home in the market—because the market value also includes the land value. Bear in mind that if there is a disaster, only the house or the property is lost, not including the land.
You need home insurance in covering the following things:
- your home’s structure
- your personal possessions
- additional living expenses
Cost of the dwelling coverage
The amount of insurance coverage is based on what will cost you to replace a home if there is loss. The coverage amount in purchasing your home is determined by an experienced and licensed homeowner insurance agent. Efficiently, this agent will compute your premium depending on the size and type of your home, your needs for liability protection and other riders or endorsements to be included in the policy.
Insurance company will inspect your home
The insurance provider has the right to know the condition of the house or the property to be insured. Home inspectors will schedule the appointment, especially if the interior part of the house will be examined. If the insurance company gives loss control recommendations based on the result of the home inspection, essential changes or repairs must be accomplished to lessen the chance of loss before insuring the house. Non-compliance with what is recommended would mean that the insurance company can cancel the policy.
To get additional information about homeowners insurance in Florida, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N State Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.