Your home is one of the biggest purchases you’ll ever make, so make sure it’s protected with the right insurance coverage. At Insurance Resources we specialize in homeowners insurance, and our agents understand the intricacies of the Florida market. We have access to a large number of carriers who offer a wide variety of coverages to fit your particular need. So if you are in the market for a new home or are simply fed up with constant increases from your current provider, give our agents a call to discuss your options.
What coverages are offered?
This is the coverage for your actual home. Each carrier uses your home’s location, construction, age, and replacement cost to determine an appropriate premium. Certain home characteristics can make your home either ineligible (i.e. bad wiring or plumbing) or can help to reduce your premium (i.e. roof mitigation credits or a burglar alarm).
Other structures coverage protects those structures that are detached from your home, such as a detached garage, shed, cottage, or possibly even your fence. It’s important to see what your insurance carrier considers as Other Structures as it varies among the carriers.
This coverage provides coverage for your belongings, such as electronics, furniture, clothing, and other goods. The coverage is typically worldwide (with some limitations). We always recommend our insureds to insurance their items at replacement cost so that no depreciation will be taken out if there is a loss.
Loss of Use
Loss of use is a valuable coverage that provides for temporary living expenses and other additional costs you would suffer after an insurable loss. The coverage is usually provided as a percentage of your Building limit (10% – 20% is typical).
This provides coverage for bodily injury and property damage incurred by others for which you and or your family members are legally responsible. Typical losses include slip and falls & broken windows, but since the coverage typically follows you it could also protect you against ski or golf accidents.
This is a “no-fault” coverage that pays out if a guest on your property were to suffer an injury. It usually is used to pay for hospital bills, surgery, x-rays, or ambulance charges.
Why do I have 2 deductibles?
Due to Florida’s susceptibility to hurricanes most policies in the state typically have 2 different deductibles.
The first is called an all other peril (AOP) deductible and it applies to all losses besides wind, such as fire, lightning, water damage, and theft. This deductible is usually a dollar amount ($1,000, $2,500, or $5,000 are typical) and it is paid by you before the insurance company will make a payout. Like all other deductibles it is used to reduce small claims and your premiums.
The other deductible is either a wind/hail, named storm, or hurricane deductible. Wind or hail deductibles apply to any loss caused by wind and or hail. Named storm deductibles apply to any storm named by the National Hurricane Center, including Tropical Storms. Finally, Hurricane deductibles apply to any named storm with winds over 74 mph (Category 1 strength). Most Homeowners carriers are now offering Hurricane deductibles which is the best for the insured, as the all other peril deductible (which is lower) applies to other wind losses. Whatever type of deductible you have it is typically a percentage of the building limit. Therefore, the more it costs to replace your home, the more you have to pay out of pocket if there was a wind loss.
Questions to ask your agent