Table of Contents
When a storm crashes through your front door or a different catastrophe hits your home, the severity of the damage cannot be predicted. Picking up the pieces can be difficult sometimes, and the future of your home might be dependent on your choice of insurer.
Choosing your home insurance policy will be one of the biggest and most important decisions you’ll ever make. You will also need to renew your policy yearly to ensure that it continues to meet your needs. In the following sections, we will explain why insurance is so important, while also providing advice for any situation where you need to make a claim.
WHY HOMEOWNERS INSURANCE MATTERS
Homeowners insurance is something that you will hope you never need to use but having it there will give you complete peace of mind and a financial safety net. If you are buying a home for the first time with a mortgage, then homeowners insurance will be a requirement.
Here are the reasons why this type of insurance matters, and the benefits that it can provide.
- Needed for a Mortgage: If you are getting a mortgage, then homeowners insurance will be mandatory. This is because the lender will want to ensure that you (and they) can recover if anything catastrophic happens to your home. Minimum coverage will depend on the value of your mortgage and other factors. If you aren’t sure, talk to your lender first.
- It Covers You for Liability: America is often referred to as a sue-happy nation. Unfortunately, there’s some truth to this. There are more than 40 million lawsuits filed in the United States every year. Some of these are frivolous in nature, while others are justifiable. Regardless of the statistics, you need homeowners insurance to provide liability cover for accidents that occur on your property. If somebody is injured in your home or on your property, they would have a right to sue you and claim damages. Family liability insurance is a basic component of homeowners insurance, and it will protect your liability.
- Homeowners Insurance Covers Your Belongings: Furniture, appliances, jewelry, artwork, electronics, clothing, and other goods in your home can be covered by your homeowners insurance policy. This will protect you from theft, loss, and damage. In some cases, your policy will cover your belonging even if they are lost or stolen outside of the home.
- Insurance Will Cover Your Most Valuable Asset: Your home is one of the biggest investments that you will ever make. It is logical that you should protect that investment whenever you can. Insurance will cover your property from damage related to vandalism, fire, wind damage, storm damage, etc. Even if your home is completely destroyed, the right insurance policy will provide coverage so that you can get back on your feed. Some policies will even provide coverage for temporary accommodation in the case that your home needs repairs or rebuilding.
Put simply, you will never have peace of mind if you don’t have home insurance. Talk to the team at Moran Insurance today to explore your options for coverage in the new year. Many homeowners look for Florida home insurance coverage at the onset of owning a new property and forget about the policy afterwards. This means users don't have any experience or first-hand knowledge of how insurance companies treat claims until they have an incident that requires them to put in a claim on their homeowner insurance policy. Below are some tips that’ll help you if you are filing a claim on your policy:
Adjusting Your Claim
Get a claims adjuster that will inspect the damage to your home and offer you a settlement that will cover your repairs.
What Happens to My Mortgage?
If you have a mortgaged house, you will receive a check that is made out to you and the mortgage lender. This means that the mortgage lender will have to endorse the check.
How Do I Select a Contractor and Who Pays?
Using a reputable contractor to do your repairs is critical. Word of mouth is the best way to choose a contractor. Also, check with the area Home Builders Association, and make certain they are licensed and have adequate insurance coverage. Ensure you get more than one repair estimate and make sure everything is in writing.
What Happens to My Personal Property?
First add up the value of everything in your home that was damaged in the disaster. Then review your personal items so you can figure out any missing items. When making a personal inventory list, remember those items that may be destroyed in the attic, basement, outhouses, etc.
How to Get Payment?
If you own a replacement policy, you will be refunded for the cost of purchasing new items. An actual cash value policy will repay you for the value of all damaged items less the cost of depreciation. Some insurance companies will need you to buy these items before you get reimbursement.
Expenses during Renovations and Construction.
You should receive a check in your name for additional living expenses. This money is not for the repairs to your home and is intended to cover your personal expenses for car rentals, hotels, and other bills you may incur during the repair period.
There are several options available to you when your home is about to be rebuilt. Rebuild your home on the same site or to start a new structure at a different location. The amount you will receive from your insurer will be determined by the state's law, or what the court ruled on the case. If you choose not to rebuild, examine your homeowner policy and ask your insurer or insurance representative what the compensation amount will be.