HOME INSURANCE

Here are just a few links to other companies that we've either worked with in the past or heard good things about. 

McGriff Insurance - Bruce Ragain  (239) 829-1408 -  13515 Bell Tower Drive, Fort Myers, FL 33907

State Insurance USA - (239) 567-9992 - 4450 Camino Real Way, Fort Myers, FL 33966  

Dawn Sullivan State Farm – (239) 574-4070 - 2708 Santa Barbara Blvd#120,   Cape Coral Fl 33914  

HOME INSURANCE

Home insurance covers damage that's caused by fire, hail, lightning, vandalism and other covered perils.  Now, let's walk through the different types of coverage in a home insurance policy:

 

●     Homeowners / Dwelling: This pays you to rebuild or repair your home if it's damaged by a covered cause of loss, such as a fire, broken plumbing or roof leaks.

●     Personal property: This covers what's in your house, such as furniture, clothes and electronics.

●     Wind / Hurricane: This pays you to rebuild or repair your home if damaged by wind or rain directly related to hurricane conditions.

●     Liability: This covers you if you're sued or receive a claim against you or a member of your household. This could be because of causing bodily injury or property damage outside your property.

●     Flood: Flood insurance denotes the specific insurance coverage against property loss from rising water. To determine risk factors for specific properties, insurers will refer to flood  zones as shown on FEMA maps. 

●     Other structures: This covers detached structures, such as garages, fences and sheds. Usually a fee to include this in the primary Homeowners policy or as added endorsement.

Minimum Home Insurance Levels

HOMEOWNERS POLICY   In the state of Florida you are not required to have homeowners insurance if you paid off  your home. However, lenders require dwelling and liability coverage if you have a mortgage and the actual minimums depend on state law and company policy. Depending on the location of the home, flood insurance may also be required.

Different lenders have entirely different requirements depending on the location, building codes, type of home, etc.  Mortgage lenders' primary concern is that your home insurance protects against anything that can damage your (and their) asset. The lender cares about the home, but doesn't take into account the land, your belongings or other buildings on the property.

They also do not base the amount of coverage on the current value or what you paid for the home.  They will base the amount of coverage on REPLACEMENT COST.  What you pay for home insurance will depend on where you live, the amount of coverage you choose, the type of material your home is made of, how much of a home insurance deductible you choose, among other things.

The mortgage company will require a minimum level of liability coverage, which starts at $100,000.  Typical policies will include $300,000 coverage or more.

Other Insurance Requirements For Your Home

FLOOD  If you're in a flood zone, the bank will require flood insurance. A typical homeowners policy may or may not include FLOOD insurance but if not, coverage will likely be available as a separate policy.  The cost of a policy depends on your home's risk. So, if you live in a place not prone to flooding, you may pay less than $200 a year.  Homeowners pay much higher premiums in a high-risk area.

In Lee and Collier Counties your home will likely be located in one of three Flood Zones as follows:

●     Zone   X:   Non Hazard, No Flood insurance required.

●     Zone AE:  Yes  Hazard, Flood Insurance required.

●     Zone VE:  Yes High Hazard, Flood insurance required.

To easily find your flood zone, go to the FEMA link and input your street address:    https://msc.fema.gov/portal/search

WIND / HURRICANE  If you live along the Florida coast your lender will likely require that you get hazard coverage for hurricane and wind.  It will likely be offered as part of your homeowners insurance package but will have a separate, higher cost deductible. Most companies will have a minimum deductible,  2% of the home value. Some companies now offer a flat rate deductible of varying cost. (Percentage example…450,000 value x 2.00% = $9,000)

The higher the deductible percentage or amount, the lower the premium charged will be.

Hurricane Damage Caused by Wind

Wind is typically among the perils covered by a standard homeowners insurance policy. However, SOME policies partially or completely exclude wind-related damage. It's important to read your home insurance policy or contact your agent to learn if and how your home's structure, as well as your belongings, may be covered against a hurricane's winds.

If your policy does offer coverage for wind damage, you may find that it includes a separate hurricane deductible that is higher than your standard deductible.   And, if coverage is provided by your policy, it's important to remember that coverage limits will apply.

Be sure to review the amount of coverage you have in place and make any necessary adjustments to help ensure your limits are in line with the potential cost of repairing or rebuilding your home.

Hurricane Damage Caused by Flood

Private homeowners insurance policies typically do not cover flood damage. That exclusion also pertains to flooding brought on by or as a result of a hurricane. You may be able to purchase a separate flood insurance policy through the National Flood Insurance Program to help cover such damage. However, if a hurricane's wind damages your roof, and rain gets in as a result, you may find that homeowners insurance offers some protection if your policy includes coverage for wind. Read your insurance policy carefully to learn what it does and does not cover, and contact your local agent with questions or to discuss your insurance needs.

Personal property coverage

Home insurance covers your belongings. A policy usually provides between 40% and 50% of your home's worth for contents coverage. A mortgage lender doesn't have a stake in your personal belongings so won't require this coverage, but you should still make sure you have enough coverage to protect your home's contents. Video  is an easy effective way to document your personal belongings. It's a good idea to take an inventory of your home's possessions to see whether you may need more insurance to replace those items. Make sure to think about all of your expensive belongings, including electronics, jewelry, artwork and firearms.

You can buy additional coverage if your regular homeowners policy doesn't cover enough for your personal property.

Liability insurance

Liability insurance is the part of the policy that protects you against lawsuits and claims involving injuries or property damage caused by you, family members or pets living with you. A standard homeowners policy may start at $100,000 worth of liability insurance. That's likely not enough.

The specific amount you need depends on your situation and assets. If you own multiple homes in high-value property areas, you'll need more liability insurance than if you don't have many assets. Most insurance experts recommend at least $300,000 liability coverage.

Depending on your assets, you may even want to look into umbrella insurance, which offers additional liability coverage up to $5 million.

How much home insurance do I need?

Mortgage companies require minimum coverage, but that's often not enough.  Consult with a local insurance professional to right-size your policies so that you and your family have the appropriate coverage for your situation.  Having too little coverage can be a disaster and having too much can be a waste of valuable premium dollars.