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How Does Homeowners, Condo, and Renters Insurance Work? Part 2

As a property owner, you are always thinking about how best to keep your assets safe, and one of the best ways to do that is to get insurance. The problem is there are so many different kinds that it can be daunting to know which coverage is best for you to get.

We recently published part 1 of this guide to homeowners, condo, and renters insurance which you can view here. Now we’ll be continuing with the rest that you need to know below:

Coverage F: Medical Payments

Guest medical coverage is included in most home insurance policies. This provides protection for your guests, should they be injured in or around your home accidentally. Say a bad rainstorm leads someone to slip in your backyard during a party - this policy will make sure you are not personally liable for their medical costs.

Typically, policyholders with guest medical coverage can feel confident in their ability to help pay for reasonable and necessary medical expenses (up to policy limits) caused by accidents at your home that are not covered by more general liability protection.

Even if you don’t own a home, you want to make sure your contents are protected. Most apartment communities require this coverage.

What About Deductibles?

There are also some deductibles that you need to keep in mind when it comes to homeowners, renters, and condo insurance.

  • All Other Perils (AOP)

$500, $1000, or $2500 - A higher deductible can have a lower annual premium, but more out-of-pocket expenses at the time of a loss. A lower deductible will mean less out of pocket if you file a claim, but a higher premium on your homeowner’s policy.

You’ll need to ask yourself, which you do feel more comfortable with?

  • Hurricane

The market standard in Florida is to carry a 2% Hurricane Deductible. This is a percentage of your dwelling coverage. For example, a home with $250,000 in dwelling coverage and a 2% deductible, will have a $5000 which will be deducted from the final claim payout.

Many carriers are now offering $500, $1000, $2500, 2%, 5% and 10% options. Choose a deductible that best fits your needs.

Other Optional Coverages:

  • Replacement Cost on Contents

This is additional coverage you can take out to protect the contents of your home. This policy usually includes things like your furniture, your television, other major appliances, and more.

  • Screened Enclosure Coverage – May or may not include screening

Screened enclosures are either freestanding structures with a roof and screened-in sides or attached ones like simple carports that have just a single sheet roof.

  • Water Backup and Sump Overflow

This type of coverage provides added protection from any water damage caused by backed-up drains or failed sump pumps. These issues can occur due to blocked sewer lines, clogged drains, and more.

Another important thing to note is that this policy also covers the growth of mold and any damages related to mold if it was caused by the water back up and overflow.

  • Flood Endorsement – Many carriers offer this on your home insurance policy now

An additional policy that can be taken out above and beyond your general home insurance policy - this coverage is useful if you live in a frequent flooding zone.

It can also pay you to comply with the local floodplain management law or ordinance affecting repair or reconstruction of a building suffering “flood” damage.

  • Ordinance or Law Coverage (10%, 25% or 50%)

Ordinance or law coverage is a home insurance coverage add-on that protects you from the costs incurred when repairing or rebuilding a home after a covered loss and must bring the property up to code. It can also cover changes to undamaged parts of a property.

  • Sinkhole Coverage

Sinkhole coverage is an insurance policy that covers your home and personal belongings from sinkhole damage.

Sinkhole insurance also pays to stabilize your home's land and covers the cost of repairing your foundation if it is damaged.

  • Loss Assessment

This is for people that live in homes that have shared public areas. It’s an optional endorsement that you can add to your homeowners insurance or condo insurance policy. It helps protect you if you live in a shared community, like a condo or homeowners association (HOA), where you're responsible for a portion of damage or loss in a common area.

Contact Richard Dean Insurance

We believe that everyone deserves to know they have the protection they need. We can help you secure your next insurance policy - reach out to us today by clicking here.



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