As the old year ebbs away and the new year begins to flow, Florida homeowners want to know that their homes are well protected. Whether you are getting ready to buy a new home during 2021 or just want to take better care of the home you have in the year ahead – quality homeowners insurance should be a key part of your strategy.
Here are the top 5 reasons why you should invest in homeowners insurance OR in a better homeowners insurance policy as we enter the year 2021.
- Homeowners Insurance Is Usually Required
Although there are a few exceptions here and there, almost always, your mortgage company will require you to cover your home with homeowners insurance. It’s not a state law, just a policy of mortgage lenders so they can protect a piece of property that they still mostly own.
Also, if you are going to refinance your home, you will have to show proof that it is covered by a home policy. In fact, if you fail to buy homeowner’s insurance, many lenders have clauses that allow them to buy a policy and then back-charge you for it – and you then get a worse policy, one you didn’t choose, and one that often costs more!
Thus, the first reason to protect your home with homeowners insurance is simply that there really is no way around it.
- Homeowners Insurance Offers Vital Coverage
There are many important components of Florida homeowners insurance, some of which are so central and vital that you basically can’t afford to be without it – even if it weren’t required by your lender.
The core coverage for home insurance is dwelling coverage. That just means that your main building is covered against damage or total loss due to a house fire, severe weather, vandalism, and a host of other possible causes. Of course, some things are excluded (like flood damage which typically requires separate flood insurance), but most risks are covered at least.
Also, you normally have a detached structures component to the coverage. This covers your detached garage, sheds, fences, doghouses, gazebos, and almost any other detached structure you want to add. The amount of coverage is typically a percentage of your main dwelling coverage cap, say 10% to 20%.
- Your Home is Full of Valuable Property
Not only is it true that your home IS valuable property, it also is likely full of a variety of valuable pieces of personal property. These too can be covered by homeowners insurance.
Personal property coverage covers the personal property you store in your home up to a certain agreed-upon limit. You can choose to raise or lower that limit, though this could affect your monthly premiums.
Appliances, furniture, electronics, jewelry, and more can potentially be covered by a home policy’s personal property component. You’d be surprised how much total value (or replacement value) everything inside of your home really has when you add it all up.
- Accidents Happen & Liabilities May Apply
The next reason that it makes sense to cover your home with a quality homeowner’s policy is that these policies include components that can help pay for medical expenses or legal costs associated with an accident that occurs on your premises.
First, there is the limited liability coverage that comes with all homeowner’s insurance. It is baked in as part of even a basic policy. It applies, under certain limitations, if you are found liable for personal injury or property damage to a third party – not someone who lives at your home but a “visitor.”
Second, your policy may also have additional coverage for medical bills of those injured at your home called “guest medical protection.”
- You Need to Live While Your Home Is Being Repaired
Quite often, when a fire or storm or another source of major property damage occurs, you may be temporarily forced out of your home while the repairs are being completed. This could go on for days, weeks, or even months.
Many home policies include a provision that covers you, up to a specified limit, for temporary living costs like hotels, restaurants, and the like should you have to live elsewhere while your home is being repaired or rebuilt.
This is an often overlooked expense, but should this happen to you, you will be very glad you prepared ahead of time by buying homeowner’s insurance!
To learn more about how Florida homeowners insurance works and how it can benefit you and protect the investment you’ve made in your property, contact Flagler County Insurance Agency in Central Florida today!