When it comes to homeowner’s insurance, you have a lot of questions. And you are not alone. While the vast majority of homeowners have a policy to protect their property, few truly understand all the terms included in their coverage.
As long-time insurance advisors, we counsel people every day as to the best home insurance for their lifestyle, budget and needs. There are some questions which arise on a regular basis from people just like you, and we love answering them. In fact, at Ezzi Insurance Advisors, we pride ourselves on educating our clientele and making sure they understand exactly what they have signed up for. Here are some of the questions we hear the most.
Is homeowner’s insurance required to own a home?
If you purchased your home utilizing a mortgage, your lender does require an adequate home insurance policy to be in place. In the state of Florida, this includes a requirement for windstorm coverage. If you paid cash for your home, or have paid off your mortgage, there is no requirement for homeowners’ insurance.
However, without insurance you have no protection against hurricanes, flooding, fire, theft, or any other result of our severe weather. If your home is damaged or destroyed, there is no financial reimbursement or remedy. Therefore it is strongly recommended that all homeowners have a policy in place to protect their investment.
What is a deductible?
The deductible is the amount of money the homeowner must contribute to the repair or replacement of their home before their coverage kicks in. A deductible is thought of as the homeowner’s “skin in the game”, giving them motivation to properly take care of and secure their home, not just rely on an insurance payout.
Generally speaking, the higher the deductible the homeowner is willing to pay, the lower the monthly premium. However, when shopping for a policy, it is important to consider how much you can realistically pay out of pocket if there is a major claim. This balancing act can be tricky to figure out, and is one of the areas that a personal insurance agent can be a great benefit to you.
What is bundling?
The term “bundling” refers to an individual purchasing two or more policies from their insurance provider – such as home and auto insurance. The bundling of the two policies typically results in more affordable premiums, as well as enabling all insurance premiums to be sent in a single payment. For Florida residents, there may be many policies which could be bundled with home and auto insurance, such as boats, RVs or motorcycles.
Those who consolidate their policies with one provider often save enough to choose lower deductibles or add coverages to protect themselves further.
How often should a homeowner review their policy?
There are certain events which should automatically trigger a call to your insurance advisor to discuss coverage, such as the addition of a pool, putting on a new roof, getting married or adding a security system. All of these things are likely to affect your policy, although in different ways. For instance, a pool will typically raise your rates. However, if you do not cover the pool, you have no protection if someone is injured in it. A new roof or security system, on the other hand, is likely to lower your rates or make you eligible for a discount. Even if you don’t add anything to your property, it is still a good idea to review your policy at least once annually.
There may be new programs which have been introduced, or better policies for your situation or budget.
Finally, we are often asked why working with a professional insurance agent is beneficial. This is perhaps the most important question to ask. The fact is that with the many variables, coverages and terms available to you, a call to Ezzi Insurance Advisors is a great decision. We will go over all of your needs, explain the policy options, help to determine the right deductible, and ensure that you understand your terms, especially what is and is not covered. We can sort through multiple company offerings to find the policy most tailored to your needs, and keep you abreast of any changes which may affect you.
We know that you have questions. At Ezzi Insurance Advisors, it is our mission to thoroughly answer those concerns – and help you to obtain the very best coverage for your home. Call today to get started on your no obligation quote process.
