Having a home of your own is not just a matter of pride but it is also a long-term investment. With the rising rates of home insurance especially in Pembroke Pines, you must know your options. No matter how big or small the property is, your prime focus is to protect it from any kind of risk. There are a lot of risks a property faces, from burglary and theft to damage due to fire or hurricanes. This is where a home insurance comes into picture. Mortgage companies in South Florida require homeowners to have property insurance. There is a common misconception among property owners that home insurance is an added expense, and it makes them cringe. But the truth is that home insurance is one of the best ways to protect your beloved and most valuable asset.
Shopping for a home insurance can turn out to be as tedious as shopping for the property. Most home insurance companies in Florida offer different types of coverage and packages. Depending on your need and property, you need to select the best coverage for your home. But it is not as simple as it sounds. Comparing between different service providers can be tough, especially when you are not well versed with the terminologies of insurance. Another problem faced by homeowners is that they do not know where to start and what to look for in an insurance policy. Here are few essential points regarding home insurance that every homeowner needs to know:
- Understand the types of policy. Every insurance provider offers two most common home insurance policies. First one that covers specific problems or perils that are listed in the policy. The second type of policy is more comprehensive and offers a broader protection. Talk to an insurance agent and seek their recommendation on what should be your property-related concerns.
- Understand if your property needs insurance against any weather-related risks depending on your area and location. Check if the policy includes coverage against sinkhole or floods, if not you need to take additional coverage for the same. South Florida is especially susceptible to hurricane force winds and tropical storms. So, make sure that you include wind coverage in the home insurance package.
- Learn the basic terms related to insurance and their meaning. You need to know what standard coverage is and what does optional coverage stand for. Match your circumstances and property structure to decide on what coverage is needed for your property. Know the difference between an HO-3, HO-6 and DP-3.
- Make sure that you answer all the questions accurately and truly. Do not try to hide any structural or furnishing details of the home. You will have to answer questions like what percentage of the home is carpeted, what building materials were used for the roof, when was the plumbing and electrical repairs done and more. If you give incorrect information, there is a risk of your claim getting rejected when you need the support of an insurance.
- While shopping for insurance, be consistent across your search. Look for a similar kind of coverage from all providers you are approaching. This will ensure that you can easily compare plans provided by different providers. Get the key information and quotes in written, and then make a comparison.
- Research online for different home insurance companies in your area in Pembroke Pines. Get quotes from them. Create a checklist of questions you need to ask the insurance agent when you talk to them. You can refer to the list if good questions to ask that has been composed by the NAIC.
- Do a background check on the companies you are considering. Check their health evaluations by independent rating agencies like Moody’s. In Florida, Demotech is also important. Also, talk to people around you and seek recommendations of a home insurance provider. Learn their experience with the company they are associated with.
- Talk to the insurance company and learn how you can protect your home from contingencies. By making small improvements like addition of burglar alarm and wind resistance to your home to make it safer, it is possible to reduce the premium for the insurance. It will also reduce pay-out that needs to be done towards excess or deductible.
- Remember, there is a difference between cost of rebuilding your home and the value of the property in market or its purchase price. You need to have insurance to the limit that can cover the cost of rebuilding the home. Make an inventory of things in your home and calculate their approximate value. The inventory will also be useful when you need to make a claim as it will help you determine exactly what you have lost.
Give us a call and we can help you understand the factors that will affect the price of Pembroke Pines home insurance. We offer multiple carriers and are looking for the best policy for you. Right from the age of property to fire protection rating, there are several factors that influence this cost. Don’t get stressed! Research your options, ask questions and then make an informed decision.