Home-Related Insurances Worth Knowing About
For the vast majority of people, real estate is their biggest investment. Knowing how to protect that investment from unexpected occurrences is a top priority for most homeowners and investors.
The two most common home insurances for homeowners are hazard insurance and flood insurance, both of which are typically required when applying for or refinancing a mortgage loan. Regardless of the down payment a homeowner makes toward the purchase, a mortgage company will always require the homeowner to initiate and maintain dwelling full-replacement coverage for the length of the loan.
Today, we’re diving into the different types of property/home-related insurances that homeowners or investors can obtain for their property.
1. Hazard/Home Insurance
This is a must-have insurance for every homeowner who requires a loan to purchase a property. It protects the homeowner against damages to the property.
2. Flood Insurance
If your property is located in a designated flood zone, as shown on FEMA’s map, your lender will also require you to obtain flood insurance. Many homeowners assume that home insurance also covers flood damage—but it doesn’t.
3. Hurricane Insurance
In South Florida, hazard insurance policies typically include hurricane coverage. However, flood damage caused by a hurricane is not covered by flood insurance, so having hurricane insurance is essential in this region.
4. Appliance Insurance
Homeowners planning to stay in their home long-term often invest in high-quality appliances. Appliance insurance, typically low-cost, helps protect against unexpected failures or damages.
5. Vandalism Insurance
Some neighborhoods in South Florida are more prone to vandalism than others. This insurance can provide peace of mind in those areas.
6. Renters Insurance
Renters insurance offers protection for personal belongings and peace of mind for landlords. We strongly encourage the landlords we work with to require renters to carry this insurance, as it’s low-cost in South Florida and benefits both parties.
How to Avoid Insurance Premium Increases at Renewals
1. Don’t use your insurance for every issue.
The less frequently you involve your insurance provider, the less likely your premium will increase at renewal.
As a general rule: if you can afford the repair and you’re working with licensed professionals who pull all required permits, go ahead and pay out of pocket. For major damages, involve your insurance provider to ensure proper and thorough repairs.
2. Avoid making changes to your policy.
Avoiding significant changes to your insurance policy helps “age” your current agreement, making it harder for insurance companies to reassess and raise your premium.
3. Bundle your auto and home insurance.
Many companies that offer both home and auto insurance provide discounts when you bundle them. Get a quote with and without bundling to compare your savings.
As much as we dislike paying premiums, we appreciate them when something goes wrong. Recently, a realtor from our organization, Mike, was in a car accident after hosting an open house in Boca Raton.Mike had often complained about his insurance cost, until the day of the accident. It was as simple as calling a Boca Raton truck crash lawyer, and everything was resolved for him within a week.
