When you think of homeowners insurance do you think of it as only covering your home in case of a fire, or other natural disaster? While that is a big part of any homeowners insurance policy, there is a lot more to it than just that. Here's a quick Q & A on everything a homeowners insurance policy covers, and what it will mean to you in the case of a claim.
What Is Covered With A Homeowners Policy Cover?
A homeowners insurance policy is really like a multiple package policy. One part of the package is property damage insurance, which protects you from damages that occur to your home, while the second part of the package covers liability for any injuries or property damage that happens to others on your property. This can include things like your tree falling on the neighbors house, or your dog that would happen to bite someone.
A homeowners insurance policy will of course cover damages from things like fire, tornado, hail, wind, and most all other natural disasters. The only exceptions will generally be floods and earthquakes. For that type of coverage you will need to buy special coverage. That's an important point to keep this in mind if you are living in places where there is a strong chance of floods and earthquakes.
Another exception is wear and tear to the home. Most insurance companies will exclude maintenance related claims if they are caused by neglect on your part. For example: The wind blew off most of your shingles. If this happened because your shingles were already 15 years old and obviously in need of being replaced, you're not likely to have coverage for that.
A good idea to keep in mind is to always be sure you have adequate homeowners insurance coverage. Don't let yourself get caught without the coverage you need. So, if you live in an area prone to flooding, be sure you have flood insurance. Your insurance agent can easily arrange you to have coverage for this. The same applies if you live in an area that has frequent earthquakes, be sure to purchase a policy that will cover earthquake damage.
A homeowners insurance policy will also provide funds for any loss of use due to an insured disaster. This will help if you and your family need to move into another home or apartment temporarily. It can also provide for clothing and food.
What Does ACV And Replacement Cost Mean?
When you hear the term ACV, or actual cash value, it means the cost of replacing that item, minus depreciation. So, the older your furniture, clothes, appliances, etc., are, the less you will get in the event of a claim. If your TV is 10 years old and is damaged in a claim, you may get 25% of the cost of a new one. This is just an example for you to understand.
Replacement cost on the other hand means just that. It is the actual cost of replacing a covered item. There is no depreciation figured into the claim. I strongly advise everyone to be sure there homeowners insurance policy has replacement cost coverage included. It is very inexpensive and it provides for full replacement value on your home, and all of its contents.
What Is Liability Coverage?
Every homeowners insurance policy includes liability coverage to protect you from claims due to no fault of your own. This would include coverage in case one of your trees fall on the neighbors car, or your dog bites someone. Of course there are many other ways your home owners insurance liability protects you, but this gives you a good idea.
What About Renters Insurance?
If you do not own the home your living in, be sure to get renters insurance. Renters insurance provides coverage for your possessions in the event of a loss, and gives you liability coverage as well. Renters insurance policies are quite inexpensive and worth having. They also include coverage for loss of use in the event you can't stay in your home or apartment due to a catastrophe.
Hopefully you now have a better understanding on what a homeowners insurance policy covers. Be sure to spend a minute and look over your policy. You want to have to guess or find out later that you don't have coverage or when a disaster strikes. If you have questions, call your insurance agent and find out all the facts about your homeowners insurance policy.
Finding a homeowner isnurance policy in the state of FLorida is relatively easy simply because there are quite a number of insurance providers in the state. As everyone knows insurance premiums and rates can vary from state to state, along with the type of coverage's offered. This only makes sense because different areas of the country are more prone to certain types of natural disasters then others. Not much need for hurricane insurance in Utah.
Shopping for Florida homeowner insurance comes down to making a decision as to which insurance company provides the best coverage for the price. You don't want to pay an outrageous amount but you also do not want to pay to little and not have the necessary amount of coverage in case of an emergency. Here are four points to keep in mind when it comes to purchasing homeowners insurance in Florida.
1. Monthly Premium - No matter where you live a monthly insurance payment is an expense you have to fit into your monthly budget. It can take a good portion out of your paycheck so it is important to get the best deal possible. Make sure to fully review any policy before you make a final decision to be sure that it covers your most valuable asset, your home, adequately. Also look for discounts and many insurance companies offer these for their customers. One of the more popular discounts is a combination Florida homeowner and automobile policy.
2. Insurance Company Longevity - Be sure to check the history of the insurance company you are dealing with. Many fly-by-night operations pop up now and again with their only motivation being getting a hold of your hard earned money. If the deal seems too good to be true exercise caution before signing the policy.
3. Customer Satisfaction - Getting a good deal is only half the story when it comes to home insurance. The other half is the customer service side of the equation. When researching the different providers be sure to check with the better business bureau to see how their customer service is rated. Do they pay their claims in a timely manner with little hassle or do they have a reputation of making their customers wait an inordinately long time.
4. Comfort Level - Are you comfortable with the way you have been treated during the insurance quote process. The sales people should be genuinely helpful and willing to answer all your questions. You should get the feeling that if and when you make a claim they will be there to help and assist you in a timely manner.
When choosing a Florida homeowner insurance policy keep these things in mind and you should come out with a good policy at a good price that protects your home from all forms of natural and man made disasters.
Both Terry Edwards & Andrew Bicknell are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Terry Edwards has sinced written about articles on various topics from Mortgage, Yoga and Health. You can find out more about as well as much more information on all types of insurance at. Terry Edwards's top article generates over 60500 views. to your Favourites.
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