Why You Need Homeowners Insurance

Why You Need Homeowners Insurance


Homeowner’s Insurance in Florida

Buying a new home, especially for the first time, is no easy task. There are many steps to the process, such as finding a home, negotiating, home inspections, the down payment and signing paperwork, and by the end of it you’ll probably be left feeling exhausted. However, once the home is bought it doesn’t mean that you’re finished quite yet. A very important aspect of purchasing a new home that is easy to overlook or ignore after all the stress, expenses and time spent, is home insurance. Many people might want to put off or even forgo homeowners’ insurance in Florida altogether in order to avoid spending more money. But having a Florida homeowners insurance policy is critical in protecting your home from unforeseen misfortunes.

What is Florida Home Insurance?

Homeowners insurance helps homeowners cope with the financial consequences of damage to their home or the injury of someone in their home. It works as both hazard insurance and liability insurance. Most Florida home insurance policies cover the damages to a home caused by theft, fire and certain natural disasters. However, certain basic policies will require the purchase of additional coverage such as for floods or earthquakes. Homeowner’s insurance also protects the owners from liability if a person were to get injured on the property. The insurance will pay for that person’s medical expenses, up to the policy’s limit.

How Does Florida Homeowners Insurance Work?

The first step in order for you to recieve Florida homeowners insurance is to file a claim. This is done by contacting your insurance company as soon as your home sustains damage that is covered by the policy you have purchased. Once the claim is filed, your insurance company will assess the damage to your home. This assessment is done in order to confirm the cause of damage and establish the extent of the damage. Your insurance company will then offer you an amount of money to repair the damage and settle the claim. The sum of money offered can either cover the cash value of the damages or the replacement value. Replacement value is what it would cost to replace what was damaged, while cash value is what the property was worth at the time of damage. If the amount offered seems insufficient to repair the damages, you can attempt to negotiate with the company.

How Much does Homeowners Insurance Cost?

The way that purchasing homeowners’ insurance in Florida works is by paying for the annual premium and deciding on a deductible amount that will be paid at the time an insurance claim is filed. Homeowners insurance costs vary greatly depending on your home’s value, the policy you decide on, and the area in which you live. However, an annual premium for homeowners insurance is typically around $900, which is paid monthly as part of the mortgage payment. Deductible amounts are decided by the homeowners most of the time and typically range between $500 and $1,000.

Realtors in Gainesville, FL

Homeowners insurance should not be seen as simply an option, it can save you thousands of dollars if your home is ever damaged by unexpected events or if someone attempts to sue you after being hurt in your home. Some mortgage companies even require you to purchase homeowners insurance if you take out a mortgage. If you have any questions regarding homeowners insurance, seek a trusted Florida home insurance company who can provide you with the right policy for you. At Rabell Realty Group in Gainesville, FL, we are Gainesville real estate agents who look out for our clients’ best interests during the entire process of buying a new home; contact us today.