As you likely know from experience, the process of buying a home can be very stressful and mentally taxing. Understandably, many homeowners are eager to simply settle into their home without having to worry about other matters, such as insurance. As a result, many homeowners give into the temptation and simply agree to the very first homeowners insurance plan they come across.
No matter how tempting, do not fall into this trip as you will suffer from the consequences later. Here are a few tips that will help you find the best deal for homeowners insurance in Florida.
Are You Accustomed to Insurance Terms?
Without a doubt, it’s difficult to find a good deal for homeowners insurance in Florida if you’re not even familiar with common insurance terms. Unless you enlist the help of a lawyer or someone more familiar with everything insurance, it is up to you to become accustomed with insurance terms so that you will be able to assess the quality of a plan for yourself. Some general terms you should know to facilitate your search for the best homeowners insurance plan in Florida are as follows:
- Premium – While looking for the ideal homeowners insurance plan, you’re going to encounter this term frequently. Premium refers to the price that you will pay for homeowners insurance. You can choose to pay the premium monthly, biannually, or annually. When comparing the premiums of different homeowners insurance plans, you want to ensure that you convert the cost to cover one length of time. For example, you wouldn’t compare the cost of a premium paid every month to a premium paid every six months.
- Personal Property – Part of your homeowners insurance plan will cover personal property. This term refers to property within your house, such as electronics, clothes, furniture, and more.
- Replacement Cost – The replacement cost refers to a cap on how much the homeowners insurance plan will cover to replace your home and your personal property. The maximum value of the replacement cost should completely cover the cost of both your home and the property.
- Deductible – The deductible refers to the amount of money you can expect to pay by yourself when you make a claim. The insurance company will cover the cost of the claim after you pay your deductible. If you want a low premium, you can agree to pay a high deductible. However, if you agree to pay a high deductible, you should be sure that you will actually be able to pay the money if a crisis comes up and you need to make a claim.
- Personal Umbrella Liability Insurance – If you need more liability coverage than what your current policy provides, you can purchase a separate policy.
Do You Know the Types of Coverage?
In order for a homeowners insurance policy to truly be a good deal, it needs to provide the coverage you need at an affordable price. Therefore, you should learn about the different types of coverage typically offered by homeowners insurance companies. Some types of coverage include HO-2, HO-3, HO-5, HO-6, and HO-8. The HO-2 policy is sufficient for most homeowners, but you also have the option to choose HO-3 if you need coverage from just about every type of peril imaginable. HO-8 is the ideal coverage for older homes while HO-6 is ideal for co-ops and condos.
Should You Get Flood Insurance?
Every year, thousands of homeowners in the United States lose their homes due to flash floods. However, only about 13% of Americans actually have a homeowners insurance policy that includes flood insurance. Contrary to popular belief, the standard homeowners insurance plan does not cover damages from floods. You can refer to the National Flood Insurance Program for flood insurance.
Speaking of flood insurance, it is important to consider local risks in general when looking for a homeowners insurance plan in Florida. For example, in certain parts of Florida, sinkholes are a major issue. Therefore, if you happen to live in such an area of Florida, it would be in your best interest to look for a plan that covers damage from sinkholes.
Have You Asked for Discounts?
If you come across the perfect homeowners insurance plan for your needs, but it happens to cost too much, you should consider asking the insurance company for a discount. In many cases, the insurance company will offer you a discount as long as you’re willing to make repairs and installations to your home that will reduce the chance of a loss. For example, the insurance company may ask you to repair your roof or install an alarm system.
Some other reasons insurance companies may offer you a discount on your premium is if you have an automatic withdrawal, if you purchase another insurance plan from them, or if you go paperless. It is worthwhile to ask for a discount because you will save money on your premium annually by simply spending some money upfront or making a small sacrifice.
As you can see, there are many things you can do to ensure you find the best deal when it comes to homeowners insurance in Florida. Don’t give up on finding the best deal for homeowners insurance after you purchase your home. Just follow the tips discussed above and you will find a homeowners insurance plan that is both cheap and comprehensive when it comes to covering your needs.
2 Point Highlight
- Unless you enlist the help of a lawyer or someone more familiar with everything insurance, it is up to you to become accustomed with insurance terms so that you will be able to gauge the quality of a plan for yourself.
- It is important to consider local risks in general when looking for a homeowners insurance plan in Florida.
