Homeowners Insurance Coverage Questions

When considering homeowners coverage, it's important to understand the differences between Catastrophic Ground Collapse and sinkhole coverage. Every homeowners policy we offer includes Catastrophic Ground Collapse Coverage, which provides a full payout for total loss of the covered premises if the county condemns the home or property. However, most policies do not automatically include sinkhole coverage. To obtain additional sinkhole coverage, a ground survey is typically required, often at the cost of the insured, and it comes with a 10% deductible. Additionally, homeowners should also consider flood insurance and personal property coverage as part of their overall risk management strategy.

Flood, defined as rising water from the outside, is not included under standard homeowners coverage and requires a separate flood insurance policy in the state of Florida. Coverage can start as low as $200 per year if your home is not in a flood zone. If you reside in a flood zone, providing an Elevation Certificate can help lower your premium and accurately quote you a rate. Additionally, be aware that catastrophic ground collapse is another risk that homeowners should consider. Unsure if you live in a flood zone? Give us a call, and we will assist you!

Law & Ordinance

This coverage allows additional money for changes to Building Codes since the home was built. Simply put, if you ever have to rebuild due to a total or catastrophic loss, such as a catastrophic ground collapse or damage from a flood, you will need to construct your home to meet current building codes. This requirement may increase the cost of reconstruction. Most of our homeowners coverage policies include 10% Law and Ordinance coverage built into the policy. You have the option to increase this coverage to either 25% or 50%. Additionally, we can help you decide which level of personal property coverage might be right for you.

Personal Property Coverage is essential for homeowners, especially when considering potential risks like Catastrophic Ground Collapse or flooding. There are two primary methods to cover your contents: Actual Cash Value (ACV) and Replacement Cost (RC). While ACV pays out less due to the age and depreciated value of your personal property, RC ensures you receive the maximum amount for your belongings in the event of a loss, which is crucial for effective Homeowners Coverage.

OTHER COVERAGE QUESTIONS? There are so many different questions and coverage options, such as Catastrophic Ground Collapse and Flood Insurance, that we could not possibly cover them all here. Please call us to review your existing homeowners coverage and let us work with you to place you with the best carrier for your needs, ensuring that your personal property coverage protects you and your family effectively.