Think You Don’t Need Homeowners Insurance Think Again

Think You Don’t Need Homeowners Insurance? Think Again

Your home is likely the biggest investment that you will ever make. So it just makes sense that you’d want to protect that investment with homeowners insurance.

Just because you buy a house doesn’t mean you have to buy homeowners insurance. It’s not required by Florida law. However, if you must secure a mortgage to pay for your house, like the majority of people, then you are required to purchase homeowners insurance. Financial institutions and home mortgage companies require that you have insurance if they are helping you pay for your new home. Such companies see your house as collateral for the amount of money they are lending you.

Here at Berkshire Hathaway Home Services Home Team Realty, we want to help you find the house of your dreams. We’re here to help you with any Ocala real estate or home questions you might have, including home insurance questions. That’s why today’s blog article is all about the importance of homeowners insurance.

Of course you want to protect your home and its contents from damage or destruction, and homeowners insurance is a way to do that. How much you spend on insurance depends on how much property you have and the extent of coverage you want.

Most homeowner’s insurance policies are a package plan offering the following types of coverage:

The Main Structure or Dwelling: This pays for damage to your home itself as well as any attached structures, like your garage. The amount of dwelling coverage you buy should equal the full replacement cost of your home. It should be the cost of rebuilding your current home in its current location with comparable construction materials.

Loss of Use/Living Expenses: This coverage helps pay for some of your living costs should you be displaced from your home due to damage. If your roof is blown off or if a tree falls through your house, you will likely need to live elsewhere while repairs are being made.

Personal Possessions: This pays for your lost or stolen belongings, even when it’s away from home. Think about the things you have inside your home and how much it would cost to replace them. A good guideline is to insure them at 50 to 75 percent of your dwelling coverage amount. If your dwelling amount is $300,000, think $150,000 for personal possessions.

Personal Liability: This is one you don’t like to think about but it’s important to have. If someone is injured on your property and sues you, personal liability coverage provides financial protection. The amount of liability coverage typically included in a homeowners insurance policy is between $100,000 and $300,000. This coverage also takes care of medical bills for those injured on your property.

Home Team Realty knows how much our clients love their homes. That’s why we offer blog articles like this to help clients and readers of this blog stay informed on all things pertaining to homes and Ocala real estate. Did you find this article helpful? What other questions do you have? Please reach out to us on any of our social channels. We’d love to talk with you and help you find the house of your dreams.