Lisa Barton

Okay, so you have just signed the contract to purchase your new home. What next? One of the things you will need to do prior to closing is arrange for homeowner’s/hazard insurance. Fortunately for north Floridians there are many companies writing coverage in this area. We have not had a hurricane since Dora in 1964. 

The homeowner’s policy covers three basic areas:

1. Structure of the home and detached buildings on the property. 
2. Your home and buildings on your property are insured if they are damaged or destroyed by a covered peril.  Most companies require that you insure your home for at least 80% of the current replacement cost. Remember, this dollar amount represents the cost to replace your home and has little to do with “market value”. The most common insurance policy is the HO-3, a comprehensive policy that covers all perils except those that are excluded.  Homeowner’s insurance will also cover additional living expenses. This will pay your expenses if you must live elsewhere until your property is repaired or rebuilt due to a covered loss.

3. Contents of the home.
The contents of your home are also covered up to a specified dollar amount if they are destroyed or damaged. Most companies use a percentage of the dwelling coverage. It may be 50%, 60% or higher. Take an inventory of all of your belongings and keep this list in a safe place. This makes it easier to establish what needs to be replaced in the even of a loss. If you own expensive items, such as jewelry, valuable antiques or art, you may be able to add a special endorsement to cover these items for a specified value. Some companies may provide a separate policy for such items.

Liability protection.
Your homeowner’s insurance policy will also protect you if someone is accidentally injured on your property or you injure someone elsewhere. This covers the injured person’s medical bills and damage to their property. I would recommend a minimum limit of $300,000. 

You may also need flood insurance if you are in a Special Flood Hazard Area and your Lender will also require this coverage if you have a mortgage. The maximum limits available for a single family home are $250,000 on the dwelling and $100,000 for contents. Flood coverage is available through the National Flood Insurance Program and the agent that writes your homeowner’s policy will be able to write this as well. 

Candace Wagner
Executive Vice President
Dames Point Insurance
(904)704-0324