How to Buy Homeowners Insurance: A Homeowners Insurance Purchasing Guide

Individual states don’t offer requirements for homeowners insurance coverage. Therefore, it is understandable why many people get confused by the dynamics involved in buying this coverage. For instance, you should never spend too much on insurance coverage to match your home’s market value. Let’s take a look at the principles of homeowners insurance, which can help you figure out the best plan for you to buy homeowners insurance.

What is Homeowners Insurance?

Homeowners insurance provides coverage for all the property within a home in the event of damage or loss.

This coverage also incorporates any accidental injuries that a person may experience while on the property.

What are the Challenges Associated with Homeowners Insurance?

A home warranty is relatively cheap compared to a homeowners insurance policy, which requires you to pay a deductible. However, unlike a home warranty, a homeowners insurance policy is a mandatory requirement for obtaining a mortgage loan. Additionally, a home warranty does not cover damage to your belongings or accidents within your home.

Ultimately, even if you do not plan on financing your home with a mortgage, a homeowners insurance policy is a good thing to have.

Having established the importance of getting homeowners insurance, you should be prepared to handle the challenges that can accompany one.

One of the things you may have to contend with is difficulty getting a policy at all if your insurance company considers the area where you live a “high-risk” area. Factors beyond your control, such as crime and theft, as well as acts of God, could make it impossible for you to get homeowners insurance.

Another thing you must ensure is that you get enough coverage to pay for rebuilding labor and materials if something does happen to your home. This amount is known as your home’s replacement value.

Luckily, our experts at Moran Insurance and Financial Solutions can help you figure out this amount, along with all the other ins and outs of a homeowners insurance policy.

How Do You Choose the Best Insurance Solution (Broker) Company in Florida?

Choosing the right insurance company could mean everything when an unfortunate incident occurs on your property. Therefore, you need to take your time and know what to look for in a stellar insurance broker.

• Choose an insurance broker near you since they know your area and will be more realistic in dealing with you. You should never hire an insurance broker outside of the county.
• Make sure that the insurance broker you’re dealing with is licensed and has a good track record of taking care of homeowners.
• Ensure that you choose an insurance broker who has experience dealing with homeowners insurance.
• Seek to know what other customers who’ve dealt with specific insurance brokers have to say about their services. Testimonials reveal a lot about a company’s services.

If you live anywhere in Florida, you’ll find no better insurance broker than Moran Insurance and Financial Solutions. Other than meeting the above requirements, our team at Moran Insurance has an excellent track record with homeowners insurance. Just check out the fantastic things our customers have to say about the services we provide.  Don’t jump into the market for a homeowners insurance policy without the right information at your fingertips.

We – your agent, broker, and consultant – are all the guidance you need to navigate the fickle waters of insurance companies. We are an independent company, and always work to find what’s right for you, rather than them. With our creative and knowledgeable staff, we use every resource necessary to live up to our reputation of finding a solution for the most complex homeowners insurance policy problems and comparing different policies to get you the best one. Get in touch with us today to get an insurance policy that’s perfectly fitted for your home.

Do I Need Insurance?

Even though there’s no law demanding that one should buy homeowners insurance, you need to have a policy before mortgage lenders agree to finance your home purchase. Having homeowners insurance covers your home by providing money for repairs and rebuilds in the event of an unforeseen disaster or accident.

How Does a Homeowners Insurance Claim Work?

Homeowners' insurance claims don’t work much differently from other claims.

• Once you’ve filed your claim with your policy provider, an adjuster visits your home and inspects the damage.
• They’ll then decide how much the insurance company will pay for your claim.
• You may get an advance on the total amount you’ll receive from your insurance provider.
• If you receive less than you think you should, know that there may be more payments coming your way. Ask your consultant to explain the dynamics in such a situation.

Who Writes Homeowners Insurance in Florida?

Florida has several companies that write homeowners insurance policies. Sorting out the best coverage requires a creative process since cheap isn’t always the best option. However, you must take affordability into account when you’re in the market for an insurance company. The average rate offered by insurance companies in the state is $1,727. The companies that provide rates below this include the following, beginning with the cheapest:

• Security First
• State Farm
• Chubb
• Progressive/ASI
• Tower Hill
• UPC Insurance
• Universal P&C
• Johns
• American Integrity

Nonetheless, insurance providers are fickle, and being the cheapest doesn’t necessarily imply being the best. At Moran Insurance and Financial Solutions, we are here to help you find the best insurance writer for your home.

What is the Standard Deductible for Homeowners Insurance in Florida?

Florida has an average homeowners insurance coverage rate of $3,575, which is high compared to the national average of $1,228.

These numbers are averages for coverage up to $200,000 with a $1,000 deductible and a liability of $100,000.

How do I Buy Homeowners Insurance?

When you’re in the market for homeowners insurance, you should consider a few factors including:

• The amount of monthly insurance premiums you can pay comfortably
• The total replacement or rebuilding cost of your house
• The risks associated with your area, natural or otherwise

Once you’ve established these variables, you should compare quotes from a few different companies to find the most ideal for your needs. To decide on an insurance company, you need to provide some necessary details about you and your home so that you can get a quote appropriate for your individual needs.  Required information includes personal information such as your name, social security number, and address as well as information about your home, such as:

• The square footage of your house
• Its renovation history
• Its current condition and that of its amenities and appliances
• An estimated value of all your belongings and possibly the breed of dog you own as applicable.

Evaluate the rates the company has quoted while reviewing the variables considered by the company before reaching the amount. It may be in your best interest to settle for a higher deductible with lower premiums. Furthermore, if your home incorporates some security features that you didn’t mention when you requested a quote, you could be eligible for a substantial discount.

It is prudent to enlist the help of professional consultants to ensure that you get this complex process right.  At Moran Insurance and Financial Solutions, our professional and experienced team will provide you with as much help as you need to buy homeowners insurance.

How Much Homeowners Insurance Do I Need?

The type of homeowners insurance you need depends on several factors.

1. Different locations require you to buy different amounts of insurance.
2. You’ll also need to determine the risks associated with the area your home is located in, including an act of God and other threats such as crime.
3. The size of your home and the value of your property also come into play.

To figure out how much homeowners insurance you need, you must evaluate the types of coverage you require. They occur in four categories:

• Dwelling coverage insures all the structures, including your house as well as built-in and attached appliances and structures.
• Personal property coverage protects your personal belongings, such as electronics, home decor, and clothing.
• Liability coverage insures you against lawsuits that someone injured on your property may file.
• Additional living expenses coverage includes costs incurred when you have to move out of your house temporarily as a result of covered damage. These costs may include hotel residence and food expenses.

These policies protect you against various risks, such as theft and wind damage. Nevertheless, insurance companies may limit or exclude coverage of specific threats such as tornadoes or floods if your area is too prone to them. In such a case, you may have to purchase a separate insurance policy for those risks. Moran Insurance and Financial Solutions will help you find the best company to fit your individual needs.

How Do I Figure Out the Estimated Replacement Cost For My Insurance?

Determining the estimated replacement cost for your home can be tricky without the help of a homeowner insurance cost estimator.

Method 1:

If you insist on participating, you can ask an insurance agent, such as Moran Insurance, to help you determine the building cost per square foot in your region. You can then multiply that number by the square footage of your home.

The National Association of Home Builders estimated the national average in 2019 at between $100 and $155 a square foot. Other factors that impact this number include external house features, flooring, roof replacement expense, cabinets, appliances, fixtures, and personal possessions. Your insurance agent can help you throughout this process since it is difficult to handle by yourself.

Method 2:

You can get a rough estimate – which isn’t as accurate as the previous method – by utilizing some online cost calculators to buy homeowners insurance. Some are free to use, while others require you to pay a fee. The Craftsman Building Cost Calculator is available at no cost, while My Bluebook and Dwelling Cost charge up to $75 a year. However, these online cost calculators aren’t as dependable or as accurate as the first method or the third one coming up next.

Method 3:

Hiring an appraiser is the most accurate way to assess the cost of the replacement of your home. An appraiser inspects your home thoroughly and incorporates the house as well as your assets therein. The appraiser will then evaluate the cost of rebuilding your home by combining the rates of construction materials and labor. He or she will come up with the most accurate figure for your home’s replacement value, which your homeowners' insurance should work toward.

Does Insurance Cover Tree Damage and Tree Removal After a Storm?

Most homeowners insurance policies cover your home in case of a storm that falls trees and damages your house. Policies typically include your house as well as attached structures such as a garage and fence. However, if the tree didn’t damage your house or its structures, most policies won’t cover any claims. Additionally, if no harm was done to your property, insurance wouldn’t be responsible for removing the tree.

However, if the tree falls onto your house or associated structures, the insurance company may cover the repair costs as well as the cost of getting the tree off your house or structure. Nevertheless, most policies don’t cover cutting up the tree and its removal from your property. You would have to pay for that yourself.

Does Insurance Cover Foundation Problems?

Coverage for foundation-related problems differs from one insurance company to the next. Most policies don’t provide coverage for a sinking or subsiding house or one with a cracking foundation. However, some issues involving foundations are covered, specifically, if other covered problems are responsible. For instance, if there was a problem with your plumbing and leaking pipes that led to cracking and possible sinking of your house, you might receive coverage for it.

How Much Does Homeowners Insurance Cost?

The country’s annual average homeowners insurance premium is almost $1,200. However, there are many more factors that come into play when determining the cost of a policy, including the house you’re in and the state where it’s located. If you’re in a famous region with a higher population and home value, the cost of homeowners insurance will be much higher. Additionally, if your area is highly prone to natural disasters, you should brace yourself for higher premiums.

Different states have different annual homeowners insurance premiums. For instance, Florida ranks the third highest in the country with an average premium of $1,918, behind Louisiana and Texas, which have an average of $1,967 and $1,937, respectively. In these states, expect your homeowners' insurance cost to be somewhere along these lines, pending confirmation of other variables, such as the value of your possessions.

Is Homeowners Insurance Paid Monthly or Yearly?

Whether you pay your homeowners insurance monthly or yearly depends on a few factors. Most insurance companies require you to pay the premium in full every year and won’t allow monthly installments. Some cases allow you to pay for the premium through an escrow account, along with your mortgage and property taxes.

However, if you’ve paid off enough of your home loan and/or your bank doesn’t require you to buy homeowners insurance through an escrow account, it’s up to you. You can decide to pay monthly, quarterly, or annual premiums.

By How Much Should Insurance Increase Each Year?

The amount by which homeowners insurance increases annually differs from one insurance company to another. However, this fluctuation takes into account much more than the difference in companies. Inflation is one of the most significant contributors since insurance has to increase to keep up with the change in repair or replacement costs of your home. For instance, in 2020, homeowners' insurances have to accommodate the inflation rate for the year – 2.3%. The age of your home also plays a part in the increase. The older your house is, the higher the repair costs, and – consequently – the higher the homeowners' insurance premium.

How Long Does It Take for Homeowners Insurance to Pay a Claim?

The time it takes for an insurance company to pay a homeowners insurance claim can be anywhere between 48 hours to more than a year.

1. The type of damage you’re claiming will have a significant effect on the time that the company takes to process your claim. The extent of the damage doesn’t matter as much as the complexity of the repairing process.

2. The number of people involved in the claim also affects the time it takes to process a homeowners insurance claim.

A loss adjuster has to be involved, and it may take several visits as they assess the damage and question you before they can agree with your carrier on an amount. While the process can end there, it may also need surveyors or/and builders to get involved.

If the process is unreasonably slow or stagnant, you can seek advice from an insurance agent or consultant, such as Moran Insurance and Financial Solutions.

What is the Cheapest Insurance Company?

Getting an affordable homeowners insurance plan is crucial if you want a beneficial relationship with an insurance company. While finding the cheapest homeowners insurance company may sound easy, it’s much more complicated than just the numbers. An insurance provider can be affordable but have poor customer service, a low payment rate history, and a myriad of other deal-breaking factors. Instead of the cheapest, you should be looking for the most affordable yet most appropriate one for the unique needs of your home.

At Moran Insurance and Financial Solutions in Florida, we aren’t insurers; we are an independent agency that pledges always to put your welfare at the forefront. We will promote your needs as we find the best coverage at a favorable price for your home. We can help you assess exactly what your home needs in terms of proper insurance coverage. Additionally, we have an extensive professional network that makes us privy to all the best plans, which you can’t find on your own. Talk to us today for the best agent, broker, and consultant services in the state and expert professional services that will surpass all your expectations.

Resources and References:

• Warranty Plan
• Act of God
• Content ID
• Current Inflation