Homeowners insurance is an absolute necessity for anyone who owns a home. The primary purpose of homeowners insurance is to cover the damage caused by perils such as:
Yet there are distinct natural events such as earthquakes and floods that are not covered by the majority of basic homeowners insurance policies. Let's take a closer look at the minutia of homeowners insurance.
Dwelling insurance, also known as buildings insurance protects the home's structure against an array of unpredictable events like fires and floods. While some standard homeowners insurance policies provide protection for these natural disasters and man made events, others do not. Dwelling coverage protects both the home and any attached structures like a garage when damaged as a result of a covered hazard. The insurance will pay for the cost or repairing and/or rebuilding things like garages, porches and decks. However, if the structure is not connected to the home, it will not be covered. Those who have a mortgage on their home will be required to take out dwelling insurance as the lending bank has a stake in the property's continued integrity. Yet it only covers the home's structure and not its contents.
Contents insurance, also referred to as personal property coverage, provides insurance for the valuable within one's home. These include electronic equipment, kitchen appliances, clothing, sporting goods, furniture etc. If your home endured a fire or flood and you had to replace all of the above listed items, the cost would be quite egregious. Therefore, contents insurance should be included in your homeowners insurance policy. Notify your insurer of your home's valuables and take date stamped pictures of each to prove their existence.
Loss of Use Coverage Insurance
Loss of use coverage provides insurance in case your home is damaged so badly that you can't live in it. This type of coverage covers both housing and living expenses in the event that you must temporarily move out of the home while it is being restored and/or repaired. Loss of use coverage can really come in handy after your home endures a natural disaster or a robbery. Furthermore, homeowners should consider liability insurance underneath their homeowners insurance policy's umbrella. It protects the homeowner's assets along with his attorney fees in the event that he is sued for injuries that are suffered on his property.
Replacement Cost Coverage Insurance
Homeowners should also weigh the merits of replacement cost coverage. This type of homeowners insurance provides coverage for your home's items without any value deducted due to depreciation. This way, you'll be reimbursed for the cost of repairing or replacing your valuables at today's prices. Some homeowners insurance policies include built-in replacement cost coverage while others provide an “actual cash value” that provides the homeowner with the value of stolen or damaged items minus depreciation.
Florida Coastal Insurance
We're proud to offer competitive homeowners insurance rates to property owners across the United States. Even if you currently have homeowners insurance, it is still worth checking into our rates to see if you can save money. Do not hesitate to contact us today for a quote.