Unlike Florida auto insurance, homeowners insurance is not legally required by the state. However, it is in your best financial interest to obtain Florida home insurance and protect the investment you made on your home. If your home is damaged or destroyed by a peril, which includes incidents that cause injury, loss, or destruction, you can be compensated with insurance. Since insurance policies vary between providers, be sure to carefully read the coverage plan you're considering before committing to the policy.
Types of Homeowners' Policies
- Owner-Occupied: Basic or Broad Form policies (HO-1, HO-2) cover your home for specific perils listed in the policy, while Special Form policies (HO-3) cover for all perils except specifically excluded incidents.
- Renters: HO-4 policy covers liability and personal property.
- Modified Coverage Form: HO-8 policy covers less than HO-2.
- Dwelling Form: Designed for older homes, homes rented to others, or for underwriting purposes.
- Mobile Home: Many insurers have discontinued mobile home policies that duplicate homeowner policies.
A typical homeowners insurance policy covers the dwelling itself, attached structures, certain unattached structures, and personal property. Many policies also include coverage for liability and Additional Living Expense (ALE) as well. All policies will have different limitations on the types of coverage offered. Flood damage is not covered by Florida homeowners insurance policies, meaning that you will need to purchase a separate flood insurance policy for protection against this type of peril.
- Actual Cash Value: Actual Cash Value (ACV) is a type of policy that covers the value of an item at the time it was lost, stolen, or damaged. To determine this value, its depreciation factor is taken under consideration.
- Replacement Cost: The Replacement Cost of an item covers the cost to replace the item, no matter how used it might be.
All Counties Insurance Agency offers an excellent, comprehensive online tool that allows Florida homeowners to determine which policy is right for them. Use it to compare rates in your area and don't hesitate to contact one of our helpful insurance experts to answer your questions today.