Buying your first home can be such an exciting yet overwhelming experience! Between all the insurance, property tax and finance company questions, it can really take the fun out of the whole thing. I would like to discuss some of the insurance items that a lot of our millennial clients can expect to come across when buying your first home. With these few tips, I hope to take a little of the stress out of your experience so you can enjoy purchasing your first home!
A deductible is simply the amount of money that you will have to pay out of pocket first before your home insurance will pay for a claim. There are usually three deductibles on a Florida homeowner's insurance policy. The first is an all other perils deductible, and this deductible applies to losses from covered perils other than hurricanes or sinkholes. Fire, wind, hail, theft, and water damage are usually the major losses that are considered all other perils. The second is the hurricane deductible, which applies only to hurricanes. The third deductible is the sinkhole deductible, which applies only to sinkholes.
One of the most common claims in the Florida homeowners insurance industry is water damage claims. We see a decent amount of these claims come through our office each year. The most common water damage claim we get is from a leaking roof. Something you should know is while most policies will cover the water damage from a leaky roof, the policy will not cover the roof itself unless the roof has been damaged by something such as a storm, falling object or hail. A decent amount of these calls are for roofs that are older and are in need of replacing. That is called wear and tear and is not covered under your homeowner's policy.
The Finer Things
When you buy a homeowners insurance policy in Florida, there is a coverage called personal property. Personal property usually includes your furniture, TVs, some appliances, clothes and other belongings that might not be attached to the home. Something to consider is your higher end belongings such as jewelry, electronics, and art. Most homeowners insurance policies have limitations of about $1,000-$2,500 that they will pay out the total for these types of items. If you have expensive jewelry, electronics, art, or firearms, you might consider asking your agent if they can be scheduled to your homeowner's policy. It will cost a little bit more, but you have the peace of mind knowing if there is a fire or someone steals them, you are covered.
Millennials are starting to enter the housing market more and more each day. If you are a millennial and purchasing a home, don't go into the process without the proper knowledge. Make sure you have a reliable real estate agent, mortgage broker, and insurance agent to help you along the way. Don't be afraid to ask questions too. We are in the business because we are passionate about what we do and are more than willing to answer your questions and educate you throughout the process.
If you are looking for homeowners insurance in Central Florida or have questions about your Orlando homeowners insurance policy, reach out to us! We’re happy to be your go-to insurance agent in Central Florida.