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How Do Homeowners, Condo and Renters Insurance Work? Part 1

If you are a property owner, it should be a priority to find protection for your assets. You want something that will protect you against damages and potential losses of your home in case of natural disaster, theft, or more.


But finding the right insurer, and understanding how your coverage works, is less straightforward than it should be. It can also vary slightly from agency to agency, adding to the frustration.

That’s why we put together this quick guide to understanding how homeowners, condo, and renters insurance work. Find just the right amount of dwelling coverage on your Florida home below:


Coverage A: Dwelling


This type of coverage is ideal for handling the forces of nature. Dwelling protection covers you against the damage and possible loss of your home in the event of a covered peril such as a hurricane, wind, hail, lightning, or fire.


This type of coverage can vary between states, but usually cover events like the following:


  • Fire/smoke

  • Lightning strikes

  • Windstorms

  • Hail

  • Explosion

  • Vandalism

  • Theft

  • Vehicle damage to the property


If issues take place due to lack of maintenance, however, these things may not be included in your policy and you may need to purchase additional coverage.


Coverage B: Other Property Structures


In Florida, this is typically a detached garage, shed, and/or other structures on your property not connected to your home.


Depending on your coverage, this may not be included in your typical homeowners’ insurance so make sure to find out if extra arrangements will be necessary.


Coverage C: Personal Property (also known as Contents)


The easiest way to understand this type of coverage is to think about it this way:


Take your home, flip it upside down, and everything that falls out is likely Personal Property. These are your personal belongings – Furniture, clothing, electronics, clothing, guns, jewelry, etc that you want to give extra protection by insuring them against accidental damage or loss.


Usually, these plans cover both your belongings and the belongings of family members who may live with you. Bear in mind that this may not include portable items that you take outside of your home with you, such as your smartphone.


Coverage D: Loss of Use


Sometimes it’s nice to know you are covered should the worst happen. Imagine that your home is irreparably damaged due to an act of nature such as flooding.


How many of us have the funds available to immediately arrange a new place to live? It can be especially devastating to those of us who do not have family living close by.


If you have Loss of Use coverage, it will provide coverage for your living expenses if you cannot live in your home due to a covered claim. This type of coverage typically covers hotels, food, and other living expenses you may incur while your home is being repaired.


Coverage E: Personal Liability


This is the most important coverage to think about as an individual. Ask yourself, what are you trying to protect?


If you or anyone in your household is accused of accidentally causing injury or damage to property, your home insurance liability coverage can help by providing for legal defense fees and, in the event of a settlement or judgment, can pay damages (up to your policy limit). We never want to imagine a situation in which we are at fault, but accidents happen and it pays to be prepared.


You may want to even consider an Excess Liability (also known as Umbrella) policy for additional coverage depending on your insurer and general activities.


About Richard Dean Insurance


At Richard Dean Insurance, we believe that everyone deserves to know they have the protection they need.


Our agency promises to make sure we find the best home insurance rate for you. We have up to 16 different A-rated home insurance companies. You can be confident knowing that we always insure homes through the most financially stable insurance carriers.


Some of the carriers we recommend are Tower Hill, United Property & Casualty, St. Johns, Florida Peninsula, Fed Nat, Edison, Universal North America, Cabrillo, and Allstate’s Castle Key Insurance Company.


Contact us today to learn more about our policies and how we can help you!


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