Homeowner’s insurance is a policy selected exclusively for coverage for your home, its contents, and any accident which may happen on your property.
Homeowner’s insurance is the elimination of financial risk in case of the full or partial loss of your home due to a fire or some other type of calamity which damages your home. The coverage is for the structure itself (including any separate buildings on your property, such as a detached garage), and the contents of your home or other buildings. Homeowner’s insurance can cover the cost of repairs or outright replacement of the structure and contents.
It is important to note that in Florida, flood damage is not included in a basic homeowner’s policy, but is written as an add-on to your policy. In some low lying areas near the ocean, a river, or lake, flood insurance is required by mortgage companies on homes they finance.
Homeowner’s insurance also covers medical payments if someone has a personal accident on your property, such as tripping over a loose rug in your home and breaking a limb.
Like auto insurance, homeowner’s insurance offers various choices for coverage, from bare bones coverage to complete coverage for any circumstance. The annual premium for the purchase of homeowner’s insurance is based on the amount of coverage you choose – both in dollar amounts and the categories of insurance you wish to purchase – and the amount of deductible you choose. The higher the deductible, the lower the risk to the insurance company, so the lower the annual premium.
In Florida, it is sometimes difficult to obtain homeowner’s insurance because of the risk of hurricanes, tropical storms, and flooding. A good insurance agent, such as you find at Fidelity Insurance Group, can help you locate homeowner’s insurance. In extreme instances, homeowner’s insurance is available through a State of Florida sponsored company which covers homes in difficult to insure areas.