Homeowners insurance is neccessary to protect your investment.
Homeowners insurance is an important part of owning a home, especially in Florida, where the occurrence of natural disasters such as hurricanes and severe storms is amplified. Knowledge of the different types of Florida insurance can save you from a significant loss should something go wrong.
Types
According to Mapsofworld.com, the three most popular types of homeowner's insurance in Florida are broad form (HO-2), special form (HO-3) and modified coverage form (HO-8). These types differ in the damages they insure against, with broad form being the most basic and modified coverage form only protecting against specific items.
Policy Explanations
In Florida, broad form Insurance is a named-perils policy and usually protects against things like smoke, hail, windstorms, hooliganism, fire, lightning and falling objects. Special form insurance is the most popular coverage and is considered an open-perils police, covering any direct damage unless it is specifically excluded. Modified coverage form insurance only protects against a set list of items, and is intended for older homes where the cost of repair may exceed its value.
Extreme Weather
Hurricane coverage is a major concern for Florida homeowners.
The threat of hurricanes, severe storms and other natural occurrences makes homeowners insurance in Florida more expensive and important. Always consider hurricanes, floods, tornadoes and sinkholes when purchasing a Florida homeowners policy. When purchasing insurance, be sure to inquire about these potential threats and the ability of the policy to cover damage from them.
Considerations
The homeowners policy needed will largely depend on the finance company or lender who holds the mortgage. They will insist on specific coverage to protect their investment. Only consult a licensed Florida insurance agent, as they will be the most knowledgeable and will explain all options for you.
