Insurance is an area that frustrates most people because they don’t really want to pay for it, are constantly looking for better quotes, and yet are so thankful when something happens and they have it in place.
Whether you are a new homeowner or have owned your home for 10 years, insurance might still not be your forte and that’s okay. The goal here is to help you understand how homeowner’s insurance works, and hopefully shed some light on what the right coverage for you could be so you can get not only a great price, but have the right policy in place for the what if’s.
Identifying Restoration Costs
A good place to start is evaluating how much it would cost to restore your home in the case of a total loss. Choosing the exact amount of your home loan may not be accurate as inflation increases and it could cost more to reconstruct than what your home loan was when you first purchased the home. Being mindful of inflation as time goes on is key to helping you get the best coverage.
No Obligation to Guarantee the Land Your House Is On
You may want to note the fact that you do not have to guarantee the land that your house sits on. An example of this would be a home that sits on multiple acres of land. Banks will attempt to get you to add additional coverage for the land as well.
Flood Insurance is not included in Florida Homeowner’s policies. If you live in Florida you are likely near a body of water, whether it is the Gulf of Mexico, The Atlantic Ocean, a River, Canal, Pond or Lake. Each of these have the ability for overflow with storms or hurricanes. Even if you aren’t in an area that is deemed to be a flood zone, it’s a good idea to have flood insurance for peace of mind.
Replacement Value Protection
An insurance protection that allows you to obtain a policy worth exactly the amount of what you lost. Of course with this added, it will cost more, but if you should have to place a claim for an item of furniture that was $3,000, that the insurance claim will set aside that exact amount so you can buy another of the same value.
Another option would use the term real money value of an item that was damaged. If this wording is used, than it is a diminished value that will only cover a portion of what the item was originally worth.
Choosing to get a higher liability insurance will cover you in case you are held accountable for damaging someone’s sliding glass door, if a baseball breaks a window, and things of this nature. This type of insurance has a few different choices, and can often times does not cost that much more to have included in your policy.
Guarantee Your Property
The easiest way to make a record of your belongings is to record each item that you want guaranteed. This is really easy since we all have smart phones, and you can save video and pictures of these items to an external hard drive or the cloud for safe keeping. If that’s a little too high tech for you, or you don’t trust technology, you can do it the old fashioned way and place pictures and a saved video in a security deposit box off property so you can obtain it when needed.