subject: Understanding Your Homeowners Insurance Policy [print this page] Understanding Your Homeowners Insurance Policy
If you own a home in the state of Florida, you understand the importance of carrying FL Home Insurance. While most homeowners insure their investment for peace of mind and coverage in the event of a catastrophic loss, many of these individuals are not familiar with the coverage that their home policy provides. Understanding your FL home insurance policy is essential to ensure your property and belongings are adequately covered. Because the standard home owner's insurance policy excludes several common exposures and limits payouts to the coverage stipulated on the contract, it is important to have a basic understanding of how you are covered.
Home insurance, also referred to as Hazard Insurance, is property insurance designed to cover one's primary residence. These home owner's policies will cover losses to a dwelling, contents, loss of use, and liability incidences on or off the premises. Policy contracts will vary depending on the insurer you choose. There are both named peril and all-risk policies. All-risk policies, while they are more expensive, will cover any peril that is not directly excluded on the contract provisions. Named peril policies limit protection to perils or exposures that are specifically listed and nothing else. For excluded losses such as floods, earthquakes, and hurricanes homeowners will need to invest in specialty coverage.
A standard FL home insurance policy will have a listed Dwelling coverage, also referred to as Coverage A on the contract. This coverage will provide payment to repair or replace your home in the event it is a total loss. While some companies will limit coverage to the exact amount listed on the policy, other companies will provide extended replacement cost of up to 50 percent higher than the policy limits. Extended replacement cost is meant to protect against inflation for building supplies and labor. It is important to review your dwelling coverage each year to ensure your home is adequately covered. If you make additions or renovations, consult your insurance agent to make the necessary adjustments.
Contents coverage, otherwise known as personal property cover, will provide compensation for your belongings in the home and in many circumstances off the premise as well. The limit of personal property coverage often defaults to 75 percent of your dwelling coverage. If you have high value items such as jewelry, antiques, or instruments, you may want to purchase an additional rider to prevent being limited on your claims made.
Another important coverage in a FL home insurance policy is liability. Liability is designed to cover the injuries of a guest or third party that you are found negligent for. Slip and falls, dog bites or faulty construction can constitute as negligence. Standard policies come with $100,000 of coverage; however, there are higher limits available. Review your home insurance policies and educated yourself on what is and is not covered. Quote additional policies such
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