FAQ: Homeowners

(See your policy for specific limitations)

What is a Homeowners Policy?
A package policy that combines coverage for your property being damaged or destroyed by various perils as well as coverage for a liability exposure of the insured. Homeowners policies cover both individuals as well as property.

What is Other Structures?
Other Structures or Appurtenant Structure, is any building or structure on your property that is not attached to your home, such as a shed, barn or fence.

How much should I insure my home for?
This is sometimes a very difficult question to answer. The first thing to remember is that you are only insuring the physical structures and not the land. Determining the cost to rebuild your home and other structures is something that should be discussed with an insurance agent who utilizes special computer software designed to determine the estimated replacement cost of your home.

What can I do to lower the cost of my homeowners insurance?
An easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible(s) will lower your premium. However, be careful to make sure that you have the financial resources necessary to handle a larger deductible.

Should I get a Wind Mitigation Inspection?
Yes, the State of Florida requires insurance companies to give credits to homeowners who have their home inspected and qualify for credits. Some credits are for roof shape, roof to wall connection, year roof replaced and opening protection etc.

What is assessed value?
The tax value placed on your home from your town, city or county’s tax assessor.

What is market value?
The amount your home and similar homes will sell for in your area.

What is insurable value?
The amount needed to replace your home to 100% of its replacement cost.

How much personal property coverage do I need?
Only you can determine the amount needed. One way is to inventory each rooms (contents) to see how much you will need to replace all items, furniture, clothing, electronics etc. You may also want to take photos and keep them in a safe place.

What is Builders Risk coverage?
This is purely property coverage that is employed when a residential structure is under construction or, in some circumstances, undergoing renovation.

What is the difference between “actual cash value” and “replacement cost”?
Covered losses under a homeowners policy can be paid on either an actual cash value basis or on a replacement cost basis.

When “actual cash value” is used the policy owner is entitled to the depreciated value of the damaged property.

Under the “replacement cost” coverage, the policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.

Does my homeowners policy cover me if I have a flood in my area?
No, your homeowners policy excludes flood coverage. You will need to purchase a separate flood insurance policy.

If a pipe breaks in my home and I have water damage, am I covered?
Most, but not all, homeowners policies provide coverage for damage caused by a broken pipe. Some policies exclude water damage by endorsement or policy form.

My home will be vacant, am I covered?
Standard homeowners and dwelling policies contain vacancy clauses that limit, reduce, or cancel coverage if a dwelling is left vacant for more than a specified number of days.

Am I covered if a sewer or drain backs-up and floods my home?
Sewer and drain backup are usually excluded from your homeowners policy.