Homeowners insurance coverage is not a luxury but a necessity. It protects you and your property against theft and damage. Almost all mortgage companies in Florida and the entire U.S. require borrowers to have active homeowners insurance coverage to enjoy fair or total compensation for their property (mainly the replacement cost of the home). Companies are also unlikely to make finance or loan transactions for real estate without solid proof of coverage.
Sometimes, you don’t even need to own a home to get homeowners insurance coverage. Some landlords encourage their tenants to maintain renter’s insurance to cover their liabilities, belongings, or even living expenses in case they encounter a significant loss event. Whether your landlord requires you to have this type of coverage or not, it is prudent to subscribe to the protection because it also covers the damage you, your family members, or your household pets cause to other people or property.
In case of damage from events such as fire, lightning, hurricanes, and vandalism, our carriers can compensate you by repairing or completely rebuilding the house. However, mutilation or destruction from earthquakes, poor maintenance, and floods may require a separate rider to ensure protection. Sheds, free-standing garages, and other physical structures within your home compound may also require a separate policy or endorsement.
Furniture, clothing, appliances, and other interior contents are also covered if destroyed by an insured disaster. There is a limit for reimbursement in this case. However, the Insurance Information Institute’s advice is that the insurance company should cover at least 50-70 % to ensure the homeowner doesn’t lose it all.
If your house contains highly-prized possessions, you may need to add extra coverage to include them on an itemized schedule or purchase a rider or separate policy to cover them.
Ultimately, it’s all about protecting yourself financially if something unexpectedly happens to your home or your possessions. This is very important because chances are your home is likely one of your largest financial investments.
It’s important to know that homeowners insurance is meant to cover any unforeseen damage, not routine maintenance. Ask your insurance agent to discuss what is covered and be sure to read your policy so you know exactly what’s included and what is not.
This scenario is rare. However, if you find yourself and your family forced out of the house for repair or rebuilding purposes, the part of the homeowner’s insurance called additional living expenses (ALE) can reimburse you for the hotel room, rent, meals, and other residential costs you incur waiting for your house to become habitable. However, this policy comes with strict limits, which you can expand if you are willing to pay extra for coverage.
Here are a few things to discuss with your insurance agent that may influence your decisions.
It is important to know that Flood insurance is not traditionally covered by your homeowners insurance and is often a separate policy. To find out what flood zone your home is located in and to get a Flood quote, click here.
Are you interested in getting a wide range of insurance coverage? Rosier Insurance can assist you. We are an independent agency that has passed the test of time in offering the greatest value to our client’s needs. Contact us today for all of your homeowner insurance needs in Bonita Springs, Florida!
