How Homeowners Insurance Can Financially Protect You

Unexpected events like storm damage and theft can result in costly repair or replacement expenses. Homeowners insurance may help manage the financial fallout of these risks.

How Does Homeowners Insurance Work?

When you purchase homeowners insurance, you agree to pay a premium to an insurance company in exchange for coverage. Home insurance may cover specific types of damage or loss up to the limits outlined in your policy, minus your deductible. For instance, if a guest accidentally gets hurt on your property, your home insurance may pay for medical treatment and legal fees if you’re sued.

Does Homeowners Insurance Provide Financial Protection?

Homeowners insurance may help cover many incidents that might otherwise drain your savings. Here’s what’s typically included in a standard policy:

• Dwelling coverage may pay to repair or rebuild your home if it’s damaged by fire, windstorm or other covered events.

• Personal property coverage may reimburse the cost of replacing stolen or damaged books, clothes, electronics and furniture.

• Liability coverage may help cover legal fees or medical bills if you cause bodily harm or property damage to others.

• Loss of use coverage may pay for accommodation, restaurant meals and other living expenses if you must temporarily vacate your home due to a covered loss.

• Other structures coverage may cover detached structures like garages, sheds or fences.

Homeowners insurance does not cover everything. Damage from floods, earthquakes, and routine wear and tear is typically excluded. You may need separate policies or endorsements to fill those gaps.

Is Home Insurance Required in Florida?

Florida does not require homeowners insurance, but most mortgage lenders ask for it as a condition for approving a home loan. If your home is in a high-risk flood zone, your lender may also require a separate flood insurance policy, which is typically not included in standard home insurance policies.

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Ativa Insurance LLC can help simplify the process of securing homeowners insurance. Contact us today for a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.