Selecting the Right Insurance for a Punta Gorda Home

Selecting the Right Insurance for a Punta Gorda HomeHomeowner's insurance is critically important when you own a home, and typically required by your mortgage lender. If you use a mortgage to purchase your home the lender will almost always require the homebuyer to purchase an insurance policy to protect the home. Recently making sure you have the right coverage, and adequate coverage, for a home has been more difficult for American homeowners, especially in the state of Florida.

Over the years many homeowners who saw a sudden rise, in their homes value were unaware (and some may still be unaware) that their home insurance no longer provided full coverage for the increased value. Some homeowners only discovered this truth when faced with events, at home and found themselves lacking sufficient insurance funds to cover expenses.

Homeowners in Florida have been met with increasing challenges of home insurance as insurance companies faced folding with an increase of fraudulent claims from contractors coupled with natural disasters. This has led companies to reassess what they offer in coverage and whether to stay in business. Regardless, homeowners still need adequate and dependable insurance coverage for their homes. So how can a Punta Gorda homeowner find the right insurance coverage on a home?

Insurance Terms That Are Important to Know

Making sure you are knowledgeable of key insurance terms is important. It will help you to know what to look for in an insurance policy and what to pay special attention to. Key terms regarding homeowners insurance include:

Claim: This is a formal request for monetary help from the insurance company to cover the cost of damage or loss

Rider/Endorsement: Additional coverage beyond what standard insurance covers. Most often applying to extra coverage for specific items not covered in a standard policy by the insurance company. 

Peril: An event that results in needing to file a claim this could include fire, theft, windstorm, etc. 

Exclusion: Noted peril circumstances that will not be covered by the insurance policy

Policy Limit: This is a number that communicates the maximum dollar amount the insurance policy will pay out to help you cover losses after an incident (peril)

Dwelling Coverage: Protection coverage for the physical structure of the home that includes the walls/frame, foundation, roof, and any built-in appliances. 

Personal Property Coverage: Insurance coverage of personal belongings kept in the home. This can include electronics, clothing, furniture, and valuables. 

Liability Coverage: This is protection should a lawsuit arise from bodily injury or personal property damage that occurs while someone is visiting your home. 

Coverage Limits: The maximum dollar amount that the insurance policy will pay out to help the homeowner pay for personal property loss, liability issues, and additional living expenses that occurred as a result of issues at the home from incidents covered by insurance. 

Premium: The fees you pay for insurance coverage. Most often this is a monthly payment, but can also be a quarterly or annual payment. 

How to Select the Right Coverage for Your Punta Gorda Home

Do Your Homework on Providers

Make sure you know everything there is to know about an insurance company before entrusting them to help you in potentially dire situations. You don't want to pay large sums of your hard-earned money to a company that promises and doesn't deliver when it is time to actually call on them for help. 

Look at third-party forums and reviews. Don't just take the company's word for it. Ask trusted friends what insurance company they have used and if they have ever needed to make a claim. Get some real-world stories of experiences on how the company took care of their customer when they needed help. 

We contacted Bill Gassett of Maximum Real Estate Exposure to get his perspective on homeowners insurance. Bill has been a Realtor for three decades and owns properties in multiple states, so he has plenty of experience.

"There are a few vital aspects to home insurance. Getting the right amount of coverage is paramount. You don't want to overinsure, as that is a waste of money. On the other hand, you will want to ensure you have enough coverage for any claims.

People tend to overinsure most of the time because a significant portion of property value is in the land, which does not need to be insured. You also need to know the different types of insurance policies and what they provide.

Most people have no idea that there are multiple policy choices from HO-1 through HO-8. Potential homeowners should know specific endorsements that may be necessary based on the location or personal belongings."

Compare Cost Quotes

Check out at least three different companies to see what they offer and how much they charge for it. Of course, don't even consider a quote from a company with a bad reputation just because the price is promising or there is some sort of sign-up incentive. The least expensive may not always be the best make sure to pay attention to the details. 

Know the Exclusions and Limitations

Make sure that you understand everything that is covered under each insurance policy that you are considering clearly. Know any additional coverage that you may need in your home and what those additional costs look like. For example, if you have a property that has additional structures on your land outside of the primary home you want to make sure that those receive proper insurance coverage.

You also want to know what will be covered and paid for in the event of a natural disaster. Punta Gorda and much of Florida are no strangers to the occasional hurricane. You want to make sure you know all of the ins and outs of coverage possibilities in the location where you live. This means assessing your needs and ensuring that the insurance policy you choose will provide plenty of protection for those needs.

Know all the Costs

Some insurance companies may offer good coverage but do not clearly communicate all of the costs for that good extensive coverage. Make sure that you are well aware of the deductible and the monthly fees for your insurance policy. You also want to make sure that you know exactly everything these costs will cover and that you will not be paying extra hidden fees you were not aware of for coverage you expected to be within a standard policy. You want to make sure that you are well aware of the actual cost of your insurance coverage as well as knowing that your coverage is covering the items you expect it to.

Consider Bundling

Many times insurance companies will offer a discounted rate for customers that bundle their insurance policy. This means that a homeowner purchases a policy for coverage on their home and for other things such as auto insurance. Bundling and using the same insurance company for different policies is a good way to save money on your insurance costs. But you do want to do the homework to make sure you are receiving the best coverage policy possible for each item to ensure it really is worth saving the money.

Making sure you have the right homeowner insurance policy to cover your Punta Gorda home can feel overwhelming. But with the right homework and some expert advice, it doesn't have to be as daunting as it seems.

For more information on Punta Gorda real estate, both buying and selling, I am here to help. Contact me anytime with any Punta Gorda real estate needs I am a highly experienced local real estate agent ready to offer you the best service in Punta Gorda real estate.

Post a Comment