The Basics

Homeowner's insurance helps pay to repair or rebuild your home and replace personal possessions lost due to theft, fire or other disasters such as storms.

The basic homeowners policy is a package policy that may be modified. But dwellings, adjacent structures, contents, liability and medical payments usually cannot be eliminated from the basic package. Although Florida law does not require homeowners insurance, some cities and counties require liability coverage if you own certain pets or a swimming pool. Liability coverage pays for non-automobile-related injuries to other people, or damage to their property, for which you are legally responsible.

For mortgaged homes, the lending institution will require full insurance coverage on the structure, including flood (if located in a special zone), fire, liability, windstorm, etc. Some developments and subdivisions may also require insurance.

Depending on which company you choose, you may obtain one of several basic packages of homeowners insurance in Florida to protect your home and belongings. Each package protects against a specified number of perils, or events that cause damage to property, such as fire, windstorm or theft.

Your homeowners insurance policy may also cover your dependent children's belongings while they attend college, whether they live on or off campus. Or, you may need a separate policy to protect personal possessions for your child who attends college and no longer qualifies as a dependent (on you household tax return).

Covered perils apply to four categories:

• Structure (the dwelling itself)
• Other structures (like sheds and fences)
• Personal property (the contents of the structures)
• Loss of use (also called Additional Living Expense or ALE)

The three packages offered most frequently to owners of single-unit homes include Broad Form HO-2, Special Form HO-3, and Modified Coverage Form HO-8. These policies insure your home and belongings against a number of perils. The perils include:

• Fire or lightning
• Windstorm or hail
• Explosion
• Riot or Civil commotion
• Aircraft
• Vehicles
• Smoke
• Vandalism or malicious mischief
• Theft
• Falling objects
• Weight of ice, snow or sleet
• Accidental discharge or overflow of water or steam
• Sudden and accidental tearing apart, cracking, burning or bulging
• Freezing
• Sudden and accidental damage from artificially generated electrical current
• Volcanic eruption

When you buy a home, you need enough insurance to protect the structure and your personal possessions in the event of a loss. Do not rely on the purchase price of the home, the amount of the mortgage loan, or the amount set by the property tax appraiser.

In order to be adequately covered, your home must be insured for the amount it will take to rebuild the home at current prices for building materials and labor costs, including the amount necessary to bring it into compliance with current building codes.

Please contact your insurance agent, and consult a licensed contractor or certified property appraiser who will provide you with a detailed estimate. This is the only way to ensure that you have adequate coverage at the time of a loss.

If your home is underinsured at the time of a loss, there may be a penalty or reduction in the amount the insurance company will pay for the loss.

Flood insurance is NEVER part of your homeowners policy. It is always a separate policy. Rates are set by the National Flood Insurance Program.