6 Types of Home Insurance You Need
Living in the Tampa area means that the most basic insurance policy probably isn’t enough. As you’re getting ready to buy a home or if you want to protect the one you’ve got, make sure you have enough insurance. Take a look at these different types of home insurance policies that you may need.
Note: We are not insurance agents. Before buying an insurance policy, consult with your insurance agent.
If you have a mortgage, your lender will require standard homeowner’s insurance. Make sure you get enough insurance to cover you if the worst happens to your home. Most people need “replacement value” coverage which pays the costs to replace your home or possessions. Choosing “actual cash value” means you’ll receive the market value, which can often be less than the cost to replace.
Many people don’t realize that a hurricane policy is separate coverage, although it’s most often included in your standard policy paperwork. You’ll have a separate deductible for your hurricane policy. If your home is ever damaged from a hurricane, your insurance company will determine the cause of the damage (wind or water). Without hurricane coverage, you’re more likely to be responsible for the expensive costs to repair and replace what was damaged during a hurricane.
Living in the Tampa Bay area, you already know that we’re surrounded by water. In certain areas, flood insurance is required by the lender. Not every part of Pinellas, Hillsborough, and the surrounding counties have this requirement. Flood insurance is recommended no matter where you live, though. A good rule of thumb to remember is that wherever it can rain, it can flood. Consider how close we are to the water, and our chances are even higher.
Additional Liability Coverage
Liability coverage is included in your standard homeowner’s policy, but some people need extra liability coverage - a higher limit or a separate policy. If you have dogs that are considered “dangerous” or prone to biting, additional liability can protect you in the event of a bite or attack. For those who throw parties where alcohol is served or invite people over to swim in your pool on a regular basis, lawsuits are a possibility if someone gets hurt. Extra liability coverage protects you when the worst happens.
Valuable Items Coverage
Over the years, you may have collected art or antiques. You might have received family heirlooms or valuable jewelry. Depending on the amount and type of valuables you own, your standard homeowner’s insurance may not offer enough protection. Valuable items coverage allows you to insure those pieces of jewelry, art, antiques, or even expensive electronics separately. Rules and restrictions will apply, so make sure to talk to your insurance agent about exactly what is covered under such a policy.
Umbrella coverage isn’t just for homeowners. You can purchase a policy for your business, too. The policy acts as “extra protection” if you have a covered claim that’s more than your standard insurance policy limits. Let’s say you have $500,000 in coverage, but your claim is $750,000. An umbrella policy would pay that $250,000 difference - up to your policy limit.
Before changing, adding, or removing insurance coverage, make sure to talk to an insurance agent. And when you’re ready to buy a new home, talk to a real estate professional.
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