Your homeowner’s insurance policy is a key piece of your financial safety net. Not only does it cover what is probably your most valuable asset, your home itself, it also covers what’s inside your home—or does it?
Here are ways your homeowner’s insurance might come up short:
You don’t have enough coverage. If your home is completely destroyed, will your insurance pay to have it rebuilt with similar quality and craftsmanship? What about coverage for your personal belongings? In the event of a claim, would you receive replacement cost or actual cash value?
Also, remember every time you make any significant upgrades to your home, you should notify your Lakewood Financial agent. Certain upgrades, such as a new roof, could net you a discount. Even if no discounts result, you’ll still want your insurance company to know the true value of your home in case you have a claim.
You run a business from your home. Homeowners insurance policies offer no liability coverage and limited coverage for business equipment. Home office policies are reasonably priced and offer both liability and contents coverage.
You don’t have flood insurance. Standard homeowners policies don’t cover flood damage, and Florida is essentially one big flood plain. Lakewood Financial represents several private companies that write flood insurance at a more competitive rate than those of the National Flood Insurance Program (NFIP). These policies also have higher available limits than the NFIP’s standard coverage. Also, private flood companies offer replacement cost coverage on your contents. The NFIP will pay only the actual cash value. (Click here for a flood insurance quote.)
Your policy doesn’t have water/sewer backup coverage. A standard homeowners policy usually covers damage from overflow of water from plumbing, heating, or air conditioning as long as it originates on your property. However, if the backup damage comes from outside of your property, such as if heavy rains cause a sewer back up into your home, you may not be covered. This is a scenario all too common in our rainy, hurricane-prone state.
You have a special collection of wine, art, jewelry, or other valuable assets. Your personal property is covered up to a percentage (usually 50-70 percent) of your dwelling limit. There are also limit caps on certain categories like firearms, jewelry, silverware, furs, coins, etc. If you have high value items or special collections, you may need a personal floater. You may also need separate floaters for each category of asset—such as jewelry and artwork. Floaters usually have no deductibles, and you may need to have your collection appraised.
Lakewood Financial is an independent insurance agency located in the Sarasota/Bradenton/Lakewood Ranch area. We have multiple homeowners insurance companies to choose from, and the expertise to find you the most cost effective policy while still insuring your home and its contents for the proper value. Give us a call at 941-747-4600 or contact us online.