Homeowners insurance policies provide property protection for homeowners and their families. However, coverage, rates, and deductibles vary widely from insurer to insurer.
Choosing a policy that offers enough coverage to repair your home, replace lost possessions, and safeguard your financial assets in the event of liability.
Dwelling Coverage
The dwelling coverage portion of your homeowner’s insurance policy protects your home against damage from accidents like fire, storms, and vandalism. It covers your home on an open perils or all-risks basis, though your insurer may list specific exclusions like floods and earthquakes.
Your insurer will typically base the amount of dwelling coverage on your home’s replacement cost, which considers local labor and material costs. This is often a better option than market value coverage, which can fluctuate depending on the real estate market.
The other portions of your policy, like personal property and loss of use coverage, are usually based on a percentage of your dwelling coverage. Experts recommend choosing a policy with a percentage that matches your lifestyle, as this could cover expenses like food, temporary storage of items, and moving costs. Choosing an insurer with a solid financial rating and customer reviews is also a good idea.
Personal Property Coverage
Most standard homeowners insurance Fort Myers FL policies cover property loss for fire, lightning, and vandalism. It may also cover damage to your freestanding garages or sheds, and some policies include personal property coverage that helps replace your belongings and defray expenses if you have to live somewhere else while your house is repaired temporarily.
Most homeowners insurance companies describe what is covered and the options available on their websites. However, it is often helpful to talk with a local licensed agent who can help find the right policy for you. Both company or captive agents who work exclusively with one insurer and independent agents can help you compare coverage options from numerous companies to find the best value.
Most insurance professionals recommend creating a home inventory listing your belongings and their values to determine how much personal property coverage you need. You can then use this information to determine your coverage limits, typically around 50% of your dwelling coverage limit.
Other Structures Coverage
Other structures coverage, sometimes called Coverage B, extends your home insurance protections to structures on your property that aren’t attached to your dwelling. This could include a detached garage, tool shed, or fence. Damage to these structures caused by a covered peril is usually reimbursed up to the policy limits, subject to your homeowner’s insurance deductible.
The standard limit for other structures is often 10% of your policy’s dwelling coverage. However, you can raise this amount if needed.
Claims for other structures are usually based on replacement cost value, just like your dwelling coverage is. However, the specifics can vary by insurer and policy. Some may use actual cash value, which takes into account depreciation. Your agent can help you understand how these limits work so you can choose the right other structures coverage for your property. They’ll also be able to explain how your other structures’ coverage works with your other policy sections.
Liability Coverage
The liability portion of a standard policy typically covers the cost to repair or replace any damage you or your family members cause to other people’s property. It also helps pay for legal fees if they sue you over the incident. Liability limits vary widely from insurer to insurer, so you should carefully consider your needs and compare the policies you are considering.
While standard homeowners insurance generally includes coverage for the most common disasters, such as fires and storms, it doesn’t cover other significant threats, like earthquakes and floods (even those caused by bursting levees or rapid snow melt). If you live in an area with these risks, you’ll need additional protection through extra-cost supplements to your policy called endorsements.
As you shop, consider discounts that may be available. These can include a lower premium for having a home security system or sprinkler system, and some companies offer loyalty credits that reward longer-term customers. You can combine your vehicle and home insurance with one provider to save money on both premiums.
