Whether you own or rent your Florida home, there are specific home insurance policies offered that protect your home and your belongings. Not every policy is the same, and each type of policy protects you in a unique way depending on your style of living. Different policies protect you from different exposures that would result in damage from specified perils, perils are events that cause damage to property.
The most common types of perils that you may be familiar with are fire, windstorm, and theft. In addition to these covered perils, home insurance policies also include specific coverage for property damage, additional living expenses, personal liability, and medical payments. Most home insurance policies provide coverage for owner-occupied single-family homes. There are other types of home insurance policies that specifically cover rental properties, condominiums, and tenants.
The following information will explain the basics of what a Florida home insurance policy provides and how it protects you and your dwelling.
Property Damage Coverage
Property damage protects you from costs associated with physical damage caused to your home as a result of a specified peril. Home insurance policies include different types of property damage coverage. The most common types of property damage coverage on a home insurance policy are listed below.
Dwelling Coverage
This type of coverage protects you from out of pocket costs associated with rebuilding damage that has been caused to your home by a peril. Most home insurance policies provide this coverage on a "replacement cost" basis. Replacement cost is the full value to replace your home in the event of a total loss. Replacement cost coverage is calculated on many factors.
It is determined using specific software which calculates the square footage of your home, the cost of exterior features, interior features, and other additional features that have been added to your home. Most of this information is pulled from public records off of your county's property appraiser but it is encouraged to bring up any additional features you know that are not listed in the appraiser when your agent is determining this coverage amount.
If you are unsure as to what it would cost to completely rebuild your home in the event of a total loss, one of our Florida home insurance specialists will be more than glad to discuss this with you.
Other Structures Coverage
This coverage provides protection for out of pocket costs associated with repairing a structure that is completely detached from your main dwelling. Examples of other structures include detached garages, tool sheds, storage houses, or other types of separate structures used for various purposes.
It is usually a lesser amount than your main dwelling coverage which is determined by a percentage of the dwelling amount. If your other structure is worth more than the included amount, you may request to have this amount increased to meet the needs of reconstruction in the event the structure was catastrophically damaged.
Personal Property Coverage
Protecting your personal property is one of the most important steps you must take when securing home insurance coverage. This coverage provides protection for costs associated with replacing your personal belongings. Your personal belongings include all furniture, clothes, electronics, pictures, valuables, etc.
Home insurance policies include a stated amount which is usually adequate to cover most family's personal property. On the other hand, if you have high value jewelry, artwork, antiques, or other high value items, these would need to be "scheduled" on the policy. "Scheduled Personal Property" is a separate amount that is attached to the policy that insures a high value item for what it is worth. In order to have your high value items scheduled on a policy, you need to have an appraisal completed by a professional that specializes in that particular items category.
Additional Living Expenses
This coverage provides you protection for costs associated with living someplace else in the event your home was damaged and you are not able to live in the house while it is being repaired. It provides limited coverage for hotels, food, and essential daily living. Different amounts are provided by different companies and are usually a certain percentage of your dwelling coverage. This coverage cannot be altered, so if this coverage is one that is extremely important to you, make sure the company that you choose to go with provides an adequate amount.
Personal Liability Coverage
This coverage provides protection against a claim or law suit arising from bodily injury and/or property damage to others (non-auto related) caused by your negligence. This coverage protects you and all family members who live with you. This coverage is very important and should not be considered lightly. Due to the high probability of people suing in today's economy, making sure you have adequate amounts of personal liability coverage is a must. If you are unsure which amount is right for you, one of our Florida home insurance specialists can help you determine the perfect amount.
Medical Payments Coverage
Regardless who is at fault, medical payments coverage pays medical expenses for injuries caused by you, or a family member, to another person on your property. Medical payments coverage does not pay for injuries caused to you or your family members. Make sure that you have an adequate amount listed on your policy in the event a claim occurs.
Deductible Options
Each home insurance policy includes a set of deductibles. There are two deductibles that apply depending on how the damage was caused by a specified peril.
All Other Peril Deductible (AOP)
This deductible applies only when damage is caused by a list of a specified perils not including hurricane damage. This deductible is a flat amount that you must pay before the company pays for the remaining balance of the cost associated with the damage. There are various amounts that are available for you to choose when purchasing a policy. When you purchase a low deductible, the premium is usually higher.
Hurricane Deductible
This deductible applies only when a named hurricane causes damage to your home. It is usually a percentage of the dwelling amount. This deductible is usually an expensive out of pocket cost that you must meet in order for the company to pay for the rest of the outstanding balance for costs associated with hurricane damage. On the other hand, you do have options that are available to you in which you may purchase a flat amount for this deductible. This will eliminate the high out of pocket costs associated with this type of deductable. To find out which flat deductible amounts are available for you to purchase please contact us.
Additional Endorsements
There are additional endorsements that you may purchase on your policy to provide coverage for certain types of damage. There are so many available that with all the different companies available to shop from, you can be confident that you can fully protect yourself, your family, and your home.
Purchasing a Policy That Meets Your Needs
With all the available options for you to purchase and choose from, buying the right coverage could be confusing and overwhelming. If you are unsure as to what coverage is right for you, or if you think your current policy might not be up to par, give us a call or use the contact form to have one of our Florida home insurance specialists discuss your concerns. We are more than glad to help you obtain that perfect policy and provide you peace of mind.
