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Searching for Home Insurance? What You Need to Know When Comparing Coverages

Choosing the best insurance for your home isn’t always simple thanks to all your options. Some insurance companies offer cheaper coverage, while others provide you with more protection at a higher price. An insurance agency near you can give you much-needed guidance throughout the entire process to help you find the best home insurance for your needs without going over your budget. An insurance agency can compare quotes from all of the major insurance providers, and they are always available if you have questions about your policy.

Here are a few of the top factors you will need to know and consider and some questions to ask while comparing coverages with those you find in your search for an insurance agency near me.

What Types of Home Insurance are Available
Home insurance is divided into eight different categories. These policies can range from HO1 through HO-8. For example, an HO-1 policy gives you the most basic coverage. However, most people purchase an HO-2 policy or an H0-3 policy for additional protection. Other types of insurance for your home include HO-4 for renters insurance, while HO-5 is known as a comprehensive form. You can also choose an HO-6 policy for condos, HO-7 for mobile homes, and HO-8 for older houses.

What is Included in a Standard Home Insurance Policy
Most home insurance policies include dwelling, liability, personal property, and additional expenses coverage. Dwelling coverage is only for the physical structure of your home, while personal property coverage is for any personal belongings within your house. Liability coverage will take care of any costs related to someone sustaining a bodily injury while at your home. Additional expenses coverage includes any living expenses that happen while you are displaced from your home, such as staying at a hotel or paying for transportation. 

An insurance agency can go over the details of your policy to ensure you understand everything. You can also choose additional coverage, but it will cost you more money. For example, buying coverage for other structures on your property is a good idea if you want insurance for your shed, barn, gazebo, or fence. Typically, the coverage for additional structures is set at 10% of your home’s dwelling coverage, but this amount can often vary between insurance providers. You might even want to consider an endorsement if you need additional insurance coverage.

How Much Coverage You Need
Making sure you have more than enough insurance coverage for your home is a top priority. Unfortunately, it can be difficult to figure this out on your own. For example, a lack of coverage can cost you a significant amount of money and lead to a lot of stress. Working with an insurance agency near me is helpful in understanding how much coverage you need. You can also choose between actual cash value or a replacement cost value policy. 

Actual cash value will pay you for what your home is worth in today’s market by factoring in its age and condition. On the other hand, a replacement cost value policy will cover the amount it takes to replace your home without factoring in depreciation. An actual cash value policy costs less money, but you will often come up short if you ever need to file on your insurance, which is why a replacement cost value policy is often worth the extra costs.

The Best Way to Calculate the Value of Your Items
Trying to determine the value of your items can be difficult without making a list. Creating a detailed home inventory list that includes everything you own and its value is important in determining how much insurance coverage you need for your home. Keeping this list up to date with new purchases is also key in making sure you have more than enough insurance coverage for your items. Creating an inventory list on a computer and storing it in the cloud is a great way to keep it protected to ensure it isn’t lost if your house suffers any damage.

How Much Home Insurance Usually Costs in Florida
The cost of home insurance in Florida is roughly 19% higher than in other states due to the risk of severe weather. For example, you will most likely pay around $1,648 each year for $250,000 in dwelling coverage. However, getting multiple quotes from insurance providers is essential in finding the most affordable coverage. An insurance agency can compare all of the quotes on your behalf and even find special discounts to ensure you receive the best insurance available while staying within your budget.

What Impacts the Cost of a Home Insurance Policy
Many factors affect the cost of your home insurance. For example, the location and age of your home will make a big impact on the cost of your insurance. The different materials used in the construction of your house will also impact the price of insurance. Other factors include your credit history, lifestyle habits, installation of protective devices, and your claims history. All of these different factors can make a big impact on raising or lowering your insurance.

Personal Belonging Coverage
A home insurance policy will most likely cover all of your personal belongings, but there are specific limits on some items. These policy limits can often vary between insurance providers, which is why it’s a good idea to reach out to an insurance agency to help you compare all of your options. Policy limits can often include different items, such as art, jewelry, cash, guns, and collectibles. Reading the policy limit is always important before choosing home insurance. You may want to buy an endorsement if you need additional protection for high-value items.

There are also specific questions you’ll want to ask to further help you make the best choices:

Am I Fully Covered If Someone is Hurt in My House?
Home insurance also gives you liability coverage, which protects you if someone is accidentally injured at your home or if you are responsible for damage to someone else’s property. Personal liability coverage will give you protection up to a certain limit. Any expenses beyond this limit will cost you money out of your own pocket. An insurance agency can help you determine if you need additional coverage, which is often recommended if you have any pets or own a pool.

Should I Choose a Higher or Lower Deductible?
Deciding on your deductible is a key decision in comparing home insurance. Choosing a higher deductible results in lower monthly payments, but you will need to pay more money on repairs before your insurance covers the remaining costs. The average deductible for home insurance can usually range anywhere from $500 to $1,000. Weighing your options with an insurance agent is helpful in determining the right deductible for your situation.

Do I Need to Buy Flood Insurance?
Flooding is often a major risk for anyone living in Florida due to the threat of hurricanes. Flood insurance isn’t included in a home insurance policy, as you will need to purchase separate coverage. Typically, the cost of flood insurance in Florida is around $700 each year. An insurance agency near me can work with you in comparing quotes from numerous insurance companies to help you find the best coverage to meet all of your needs.

Do I Need Additional Insurance for Natural Disasters?
Not all natural disasters are covered in a standard home insurance policy. For example, you will need to buy a separate policy if you want coverage for earthquakes or floods. On the other hand, fire and hail damage are often included in the coverage of a standard home insurance policy. Looking at the details of an insurance policy with an agent is always recommended to make sure you fully understand your coverage.

Does It Cost More to Insure an Older Home Compared to a New Home?
Newer homes often cost less to insure compared to older houses. Modern construction techniques and additional safety features are the main reasons why it’s more affordable to find cheaper insurance for a newer home. However, you can often lower the cost of home insurance on an older house by bringing it up to current building codes or performing renovations. Reaching out to your insurance provider is always important if you ever make any improvements to your home.

Do I Qualify for Any Special Discounts?
Finding ways to save money is important while searching for an insurance agency near me. You can often qualify for discounts by combining your auto and home insurance with the same provider. Installing an alarm system for your house is another way to reduce the cost of your insurance. An insurance agency will work with you in finding all of the available discounts to help you save as much money as possible.

How Long Does It Take to Obtain Home Insurance?
The process for getting home insurance is fairly quick. Most policies can go into effect in only a few days. However, it’s a good idea to look at the “effective date” on your policy, as you won’t receive any coverage until you reach this date. Shopping around for home insurance each year is also a great way to save money. An insurance agency can help you compare multiple quotes to make this entire process easier and less stressful.

Looking for an Insurance Agency? Reach Out to Wellcovered Insurance!
Wellcovered Insurance works with more than 30 insurance carriers in the United States. Helping our clients find the best coverage to meet their needs is always our priority. We remain one of the top-rated insurance agencies in Florida, as we can give you an auto quote in roughly 15 minutes, while a home insurance quote only takes one or two business days.

Wellcovered Insurance also maintains an active role in the local community. Our office is conveniently located in Orange City, and we are more than happy to answer any of your questions about your insurance policy. You also choose from a variety of insurance options, whether you are in need of an auto, condo, boat, rental property, professional liability, or something else.

Feel free to reach out to Wellcovered Insurance if you are searching for an insurance agency near me!