Homeowners insurance may seem pretty simple; it’s insurance that covers your home in case of damage, correct? Well what if we told you that you don’t even need to own a home in order to get coverage? Sounds confusing right? Hold on, let us clear the confusion and provide a better understanding of the coverage’s available in the market .
The answer is both yes and no. On paper, it’s the latter, but in practical terms, a person needs home insurance. Why? Because most mortgage lenders won’t lend money for a home loan unless you have homeowners insurance. Unless you are in the tiny minority in the area that can purchase a house without a loan, you will definitely need home insurance. Some landlords might not even let you rent their home, condo, or apartment unless you purchase a renters policy!
Well obviously home insurance will cover damage to the house, but it isn’t as simple as that. The type and cause of the damage is also a factor in determining whether you’ll be getting a payout or not. Most standard home insurance policies in Fort Lauderdale cover damage done to the house by theft, vandalism, lightening, fire and other perils defined in the policy, but damage done by hurricanes or floods will require additional coverage. The cost of this coverage depends on your house’s location in Fort Lauderdale, condition, age, and compliance to the current building codes, and will generally be higher if your house is near the beach or is in a flood zone. Based upon the policy coverage’s purchased, damage done to the interior and exterior of the house (walls, floors, tiles) is typically covered by the insurance. Wait there’s more; the insurance may also cover other property for damage or theft as well. For example, clothes or furniture damaged in a fire will be reimbursed by the insurance company. It gets even better; you may also make a claim for any property that has been vandalized or stolen, even if it wasn’t in the house. So if your watch gets lost or stolen, your home insurance might fully reimburse you depending on the coverage and exclusions of your policy! And that’s not all; some home insurance policies cover damage done by the insured to another party’s property, even if it wasn’t done within the premises of your house! In case of the house getting damaged by a covered peril and needing extensive repair, the insurance covers the cost of the motel or rental home that you and your family stay in during the course of the repair, up to the policy limits.
There are three major levels of coverage that you can choose from.
This policy covers the value of your home as well as your belongings without deducting any depreciation up to the policy limits, meaning you’ll be getting the full amount of coverage that you insured the property for, provided it is repaired or replaced.
Actual cash value is generally cheaper than the above, but takes depreciation into account. Losses will be settled based upon the ACV of the property at the time of the loss, less depreciation, but not more than the amount required to repair or replace the item. It is also tied to the dollar limit stated in the policy.
This is the most expensive of the three policies, and covers the full value of the house as well as going above the insurance limit to repair it. In simple terms, you are guaranteed to be getting the full price of your house and the cost of your damaged belongings. This coverage is not always available in all communities in the standard insurance market. Get A Free Quote Today!