Perils that a typical homeowner can face include damage or loss to their home or property from fire, theft, lightning, hail and wind. While no one plans to lose their St. Augustine, FL home due to these risks, it happens every day. If your home was ever damaged or destroyed, how would you pay to repair or rebuild it? That’s where homeowners insurance has got you covered. Here are the top five questions property owners have about homeowners insurance:
What is Homeowners Insurance?
Homeowners insurance is an insurance policy that protects the investment you have made in your home and property. It provides you with coverage for specific hazards or covered lawsuits.
What Determines My Home Insurance Premium?
While every insurance company is different, and your premium will be calculated on the coverages and limits of your specific policy, there are several basic universal underwriting factors included in most policies, which include:
- The cost to rebuild (not the market value of) your home, including materials and labor
- Location
- Wind resistance upgrades to doors and windows that meet Florida Building Codes
What is Actual Cash Value vs. Replacement Cost Coverage?
Insurance coverage for your personal belongings will reimburse you in the event of a covered loss. Actual cash value reimbursement is typically the amount to replace the item with new property of similar quality – minus depreciation for age. With replacement cost coverage, you will be reimbursed for the value of a new item of similar quality in today’s market.
What Factors Should I Consider When Selecting Homeowners Insurance?
While price is obviously a factor, it’s not the most important things. It is a good idea to compare several home insurance companies by using a comparative checklist before making a decision. Some of the criteria to consider include:
- The company’s financial stability rating
- How much reinsurance they purchase for hurricanes and other disasters
- Service accommodations, availability and convenient hours
- Location of the company office
Why Does My Homeowners Policy Have Two Deductibles?
Your deductible is the portion of costs you must pay for a covered loss. Florida is one of many states that have a separate deductible for hurricanes and “all other perils (AOP).” AOP deductibles cover damage from calamities such as fire, lightning or interior plumbing disasters. After Hurricane Andrew in 1992, due to the devastation, the Florida Legislature introduced separate hurricane deductibles during hurricane season, to make insurance more affordable.
How Can I Lower the Cost of My Homeowners Insurance?
Tim Huber Insurance offers a variety of discounts which can include discounts for the age of your home’s construction, opening protection, policyholder age, burglar/fire/sprinkler systems, roof age/shape, and gated community. Besides discounts, you may be able to make adjustments to your selected policy. Contact our office today to discuss how to arrive at the perfect amount of homeowners insurance coverage for your specific needs.
