subject: Binding Adequate Florida Home Insurance [print this page] If you are in the process of financing a home, you will be required to secure Florida home insurance before the lender will close escrow. While some homebuyers procrastinate and wait until the last minute to bind home insurance, others will begin quoting coverages and policies as soon as they begin the mortgage application process. To avoid stress and binding coverage that you are not sure is adequate, it is important to do your research and compare policy pricing and coverage options. By approaching home ownership responsibly, you will have the peace of mind in knowing your home is protected against common exposures.
While each and every coverage in a home insurance policy is important, Dwelling coverage should be taken into consideration when you are quoting your Florida Home Insurance. Many homeowners will insure their property for the amount financed. While this may seem like it makes sense, this is a misconception that must be prevented. When you are purchasing a home, the purchase price includes the value of the land the home sits on. Because land is not destroyed during a loss, you will need to calculate strictly how much it costs to rebuild your home. Consider the square footage of your home, the quality of construction and the current cost to build a home per square foot in your area. Consulting a contractor in your area is recommended to come up with an adequate figure.
Personal Property is the next coverage that is found on your policy quote sheet or declarations page. This coverage will cover all personal belongings that are not permanently fixed to the structure itself. While personal property coverage is generally 75 percent of the dwelling coverage, some homeowners choose to elect a higher limit when they have valuable property. You must review exclusions and limitations associated with jewelry and antiques on your Florida home insurance policy. If there are limits, you should consider investing in a special rider for valuable items.
Your personal liability should also be considered. Personal liability coverage on a home insurance contract covers you anywhere in the world. If you are found negligent of causing unintentional injury to a person or damage to someone's property you can be sued. Liability insurance protects you against these types of lawsuits. While the standard contract includes $100,000 in coverage, this can be increased for additional premiums.
Educating yourself on how claims are paid and how your personal property will be valued in the event of a claim is important. Because there are so many different factors you should consider, you must prepare by quoting different policies and consulting different insurance agents representing reputable insurance companies. By taking proactive steps you will have the peace of mind you desire and the coverage you need.
by: Todd Meyers
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