First time homeowners can find the process of buying a new home both exciting and somewhat overwhelming. After all, this is new territory for many of you and the decisions you make today could affect you for years to come. When going over your Orlando homeowners insurance checklist, be sure to consider obtaining a policy that includes liability as well as personal property protection.
When shopping for price quotes on insurance, there are certain areas that are especially important. Here are a few tips to help you to get the best coverage at the most affordable pricing.
- Know the difference between the replacement cost and the market value: The cost of rebuilding can be higher or lower than the market value, depending on how much was originally paid for the property. Rebuilding a home is often much cheaper than buying an existing structure, unless the original property bought was a foreclosure, in which case rebuilding could possibly be more expensive. The key is in accurately determining the cost of rebuilding when finalizing the details on your homeowners insurance policy.
- Take a home inventory and determine the proper amount of personal property protection: Generally, policies cover 50-75% of the replacement value of the house. However, this may not actually be enough to cover certain large ticket items, such as jewelry, fine art, electronics and any other expensive items you may own. A separate rider will likely be needed.
- Carry sufficient amounts of liability protection: This will protect you, as a homeowner, if you are sued for an injury that takes place on your property. Many policies are designed to cover you even if an incident happens away from the house. Depending on your assets, you might want to consider purchasing an additional umbrella policy in the event that you’re ever sued for an amount in excess of what your coverage offers.
- Know what is and what isn’t covered: Carefully study the exclusions section of the Orlando homeowners insurance policy. This is important to be aware of in case you need to purchase additional coverage. For instance, if you live in an area prone to flooding, you may need to buy additional flood protection. Speak to an agent about these, and any other questions or concerns you have.