1. What kind of property insurance is available?
There are different types of property policies, differing primarily on how many families will occupy the dwelling(s) and whether or not the owner lives there. For example, an owner living in a single family home will need a “homeowners” policy. An owner renting a property and living elsewhere may need a dwelling fire policy or a commercial property policy, depending on the number of resident renters. And an owner renting out property to others may have other special needs. All of these policies (and more) can be provided by your local Trusted Choice® independent agent.
2. What is homeowners insurance?
Homeowners insurance policies protect owner-occupied properties such as single family homes and townhomes. Other similar policies protect those living in condos or rental properties.
3. Why do I need homeowners insurance?
Many banks require you to have homeowners insurance if you have a mortgage. However, whether the purchase of insurance is required or not, most people believe protecting their most important financial investment should be a priority.
If you’ve made changes to your home, purchased a new home, or your property coverage is not what you want, thought you purchased, or can afford, you should definitely consider shopping for another policy. Remember, if you have recently purchased homeowners insurance from an online company and now find it isn’t what you wanted, you may be able to cancel that policy and get coverage elsewhere. To learn more about short rate fees, look in the yellow pages for local independent agents and/or those displaying the Trusted Choice® logo before you buy from an internet company.
4. What does a homeowners insurance policy cover?
Homeowners insurance policies provide financial protection in the event of damage to your home. Damage may take many forms and include, but are not limited to, fire and water (but not flood). While these coverages are generally a homeowner's primary concern, most policies don't stop there. Most policies also protect personal property or the theft of electronic equipment. Additionally, most also cover liability as a result of homeownership, such as a visitor who slips on your steps, breaks an arm, and then sues you.
A standard homeowners policy generally covers the following:
- The physical structure of your home, permanent structures on your property, and your personal property;
- Personal liability exposures that arise from being a homeowner; and
- Additional costs that may be incurred as a result of a covered loss.
The policy you decide to purchase determines which perils you are insured against. The industry standard for most homeowners policies is called the HO-3 form. The HO-3, for example, is what state-run insurer Citizens Property Insurance Corporation provides for owner-occupied dwellings.
The HO-3 contract form provides coverage for the following:
- Unless specifically excluded, broad coverage covers most causes of loss for your main building.
- Personal property damage can be written on an “all risk” basis, but is generally only for "named perils”. Unlike “all risk,” named perils is for those perils specifically stated in the policy.
- Jewelry and other types of valuable property may have only limited coverage, like maybe between $500 and $2,000, depending on the company and are usually covered for only certain perils. Most policies don't cover lost jewelry, as one example, but your Trusted Choice® independent agent is usually able to find increased coverage for such items under separate policies or riders attached to the basic homeowners policy.
- When additional protection is required, most companies will offer add-ons, called riders or endorsements. Again, your local Trusted Choice® independent agent can inform you about what’s available and which company can best provide it.
5. How can I make sure I’m buying the right coverage at the right price?
The law requires anyone who sells insurance to be properly licensed. The Office of Insurance Regulation (OIR) and the Department of Financial Services (DFS) heavily regulate licensed agents and require stringent continuing education every two years in order to maintain that license. Some online companies, even though it’s illegal to do so, do not have their telephone operators properly licensed. This can result in bad advice that leads to an uninformed decision and, ultimately, an unpaid or underpaid claim. You can check the license status of any person selling insurance by going to www.myfloridacfo.com and following the prompts. We recommend that all possible licensing violations, unfair trade practices, or deceptive “bait and switch” sales techniques be reported to the appropriate state regulator.
Remember, anyone who sells insurance, whether face-to-face or online, must have the proper license. There are no exceptions!
NOTE: This Q&A is designed to impart general information and descriptions only. Such information isn’t a guarantee or a contract in and of itself nor can it modify any insurance contracts or the definitions that appear in them. Consumers are encouraged to speak to a duly-licensed insurance agent and to always read their policies carefully.