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HOME INSURANCE POLICY: COVERAGES, DEDUCTIBLES, REPLACEMENT TYPES

By
Mortgage and Lending with CHRISTOPHER LADD HARKER LLC

         GULFSIDE MORTGAGE INC, CHRISTOPHER LADD HARKER, BROKER
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DOES TYPE of HOME MATTER

Not really. Whether your home is a detached house or a condo or a townhouse, you need to be protected by some insurance. The condo association has a master insurance policy that covers the outside of the building structure, to include the roof and exterior walls. But this master policy does not insure the inside of your unit or your personal property such as furniture and clothes.

 

 

WHAT is COVERED by INSURANCE

Dwelling Coverage. Insures your home from damage by fire, wind, tornadoes and more. Will not cover floods and hurricanes. (these will need special coverage)

Other Structures Coverage. Things not attached to your main home like a garage or shed.

Personal Property Coverage. Your personal property such as the furniture and clothes.

Personal Liability Coverage. Any lawsuits or medical expenses for bodily injury or property damage to others.

Loss of Use Coverage. Any temporary housing expenses while you repair or rebuild your home damaged during loss.

DEDUCTIBLES and Coverage. The deductibles have been going up nationwide and this is true in Florida. Our deductible was $2500 and after the four storms of 2004 it went to $5500.
CHRIS's communiqué Florida site helps you be STORM ready

SPECIAL COVERAGE

Flood Insurance. Covers flood damage to your home and contents.Lenders make sure you have this insurance if you live in flood area. Official maps by the Federal Emergency Management Agency (FEMA) show whether you need this insurance. Flood insurance, sold by the insurance company,is really provided by the National Flood Insurance Program, which is managed by FEMA.

Hurricane Insurance. In Florida your home may or may not be covered from named hurricanes depending on how close you live to the coast. Many companies will not provide any hurricane insurance for property in these Wind Zones.

In 2002, the Florida Legislature created Citizens Property Insurance Corporation (Citizens), to provide insurance to homeowners in high-risk areas who cannot find coverage in the private insurance market. This program is not having much success and is being re-assessed by Florida.

Also, the Federal government is trying to set up a program to improve insurance coverage from Hurricane and other major disaster loss such as earth quakes.

 

HOW MUCH MONEY WILL INSURANCE PAY

Actual Cash Value. Your home and property are covered for the depreciated amount of the repair or replacement value. Least expensive.

Extended Replacement Cost. Your home and property are covered up to a specified amount. If your home needs to be rebuilt, then this pays up to the limit. Our home is covered this way. The insurance company computer calculates the replacement cost and sets this as the upper limit. Then you may increase this amount by increasing your premium.

Guaranteed Replacement. No maximum amount. For homes with special or unique construction, that cost more to replace than normal. This coverage cost the most and pays the most.

THANKS. Christopher Harker

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