Insurance 1-2-3: Understanding Homeowners Insurance in Orlando

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Insurance 1-2-3: Understanding Homeowners Insurance in Orlando

Homeowners insurance is one of the two most essential personal insurance policies for Floridians, the other being auto insurance of course, so it is important for consumers to have a good grasp of all the benefits this coverage has to offer.

What is Homeowners Insurance?

Orlando Homeowners Insurance is a risk management strategy designed to help the policy holder protect their homes, possessions and occupants by securing financial support should unfavorable circumstances arise. As a package policy, homeowners insurance protects policy holders from both damage to their property and legal responsibility for any injuries or property damage caused by members of your household or the physical structure itself.

The standard homeowners policy in Orlando will help provide coverage for the structure of your home and for your personal belongings, up to a certain limits. These policies secure renters the funds to replace lost, stolen, damaged and broken possessions taking into account the current market conditions. When choosing your homeowners insurance coverage, it is essential to understand that there are two ways to set up how any property claims will be repaid should your home or its contents suffer damages from covered circumstances.

  • Actual cash value reimbursement is the less expensive of the two options; however the policy holder will not be able to recover the full amount they paid for their items. Instead, insurance providers will distribute what they consider the actual cash value of the item. This figure essentially factors out to the amount it would cost to replace the item minus a depreciation value, or a decrease in value do to wear and tear. This will increase the amount of out-of-pocket expenses for the policyholder.
  • With replacement cost coverage the insurance provider will provide reimbursement for the full retail value of the items in the current market. While this coverage can lead to slightly higher premiums for policy holders, it can also relieve the financial burden of replacing all your belongings. This coverage can also be extended to the value of your home should an unforeseen event render it uninhabitable.

Standard homeowners coverage do have limits which even at their highest may leave some of your home’s contents exposed. Additional coverage options are available for high-value, antique, and collectible items, to ensure that the full value of specialty property items are secured.  An Orlando home insurance policy will also help homeowners recover living expenses such as hotel fees, in the event you are temporarily unable to live in your home because of an insured disaster.

What Types of Damages are Covered?

Typical homeowners policies will cover property damages from a range of risk exposures from natural disaster to deviant social acts. Weather related hazards such as hail, severe winds, lightning, fire and even volcanic eruption are all provided for. Damages to property that result from riots, vandalism and home invasion are also recoverable. This will often include damages to household amenities, such as a swimming pool, landscaping and other features.

Florida homeowners insurance does not however, protect against natural flood, mudslide and sinkholes which will require additional Flood Insurance. Many areas of the Sunshine State require homeowners to obtain flood insurance, as it can be a great asset to property owners in any location.

How does Homeowners Liability Coverage Work?

The liability insurance section of your homeowners policy is designed to protect the policy holder from the financial burden of an accident involving their property or family. This coverage actually affords the policy holder coverage from bodily injury and property damage suffered by others in connection with their property. The liability coverage included in a homeowners insurance policy covers the policy holder, and those dwelling in the home, at the insured premises and away.

There are two types of liability coverage: personal liability coverage and medical payment coverage.

  • Personal Liability– Should any insured party under the homeowners insurance policy be found responsible for inflicting bodily injury or property damage upon another, personal liability coverage will help reimburse the policy holder for legal fees, awards, settlements and other related compensation.
  • Medical Liability– Should any injury induced by the policy holder or their household require medical care, the medical liability inclusions will allocate funds to compensate the treatment and care of the injured party. The benefits of this coverage only apply to non-household members, and working staff injured in a way not associated with the performance of their duties.

Orlando homeowners liability coverage doesn’t apply to injuries or damages arising from business or professional activities, to intentional injuries or damages, or to injuries sustained by members of your own household. There are however, additional excess liability and umbrella liability coverage options to Floridians who feel they may need a little extra financial protection for their assets.

How can you get the best rates?

On average Florida Homeowners insurance rates are roughly $1160 and prices fluctuate widely based on location and the type of coverage you desire. Finding the best deals can be tricky, especially for homeowner living in high risk areas, and requires a shrewd understanding of the nuances of the market and industry. Working closely with local insurance providers throughout Central Florida can help secure homeowners the perfect coverage to fit their needs and risk exposures.  If you would like more information about working with local agents to better understand which Orlando Homeowners insurance policy is right for you, give us a call at (407) 859-3691.