Florida Home Owners Insurance

Have you been trying to find homeowners insurance in Florida for your dwelling. Chances are there have been some problems finding a policy in your budget, or for that matter, just finding a Florida homeowners policy. Florida home owners insurance has become somewhat of a negative topic in Florida these days.

When trying to secure a policy for a Florida home one must know exactly what they are paying for, what will be covered under the insurance policy, and what will not be covered. Here are a few general topics that should be discussed with any potential homeowners insurance company in Florida.

Most Florida homeowners pay for their insurance through the lending institution and their escrow account. The lender may determine the insurance amount, based on the purchase price of the property or the mortgage amount. One should make sure the insurance amounts are adequate to replace the home.

Standard homeowners policies in Florida do not cover damage from floods, including storm surge from a hurricane, which is considered flooding. Much of the damage from Hurricane Ivan in west Florida to homes on barrier islands was caused by storm surge. Insurance for flooding and storm surge is available from the National Flood Insurance Program.

70 percent of the homes in Florida have a special deductible for hurricane damage in the amount of 2 percent of the policy limits. In return for the higher hurricane deductible, consumers receive a premium discount on the wind portion of the policy, usually 10 to 20 percent.

A Florida homeowner needs enough insurance to cover the cost of rebuilding the home at current construction costs. The cost of rebuilding could be more or less than the price paid or could sell it for today. Some banks require you to buy homeowners insurance to cover the amount of your mortgage. If the limit of your insurance policy is based on your Florida home loan, it may not be enough to rebuild your home.

For a quick estimate of the amount of homeowners insurance in Florida you need, multiply the total square footage of your home by local building costs per square foot. To find out construction costs in your Florida Golf Community, call your local real estate agent, builders association or insurance agent.

Building codes are updated periodically and may have changed significantly since a home was built. If your home is not up to date with these Florida codes, the home owners insurance will tend to cost more than expected.

These are only a few of the major points of what to look for when purchasing homeowners insurance in Florida. Please do as much research as you can, and good luck hunting for the perfect homeowners insurance in Florida.