Insurance basics for new homeowners
Congratulations new home owner! Welcome to an exciting time in your life. Because this property may be one of the biggest purchases of your life, it is important to protect it and all the items within it. The following includes the insurance basics for new homeowners.
Am I required to buy homeowners insurance?
You are not required to by homeowners insurance. However, if you finance a home with a mortgage, the lender most likely will require some form of insurance.
Additionally, if you live in an area prone to flooding, the lender may also require flood insurance. Last year, FEMA of Broward County update their flood zone maps. To find out if you new home is in a flood zone, click here.
What are the necessary items I need to get a home insurance quote?
In order to get a home insurance quote, one must have the following completed:
Four Point Inspection: A four point inspection focuses on the four main areas of the home, including air conditioning, electrical wiring and panels, plumbing and the roof.This inspection must be completed by a licensed professional engineer, electrician, general or roofing contractor.
Wind Mitigation Inspection: The purpose of a wind mitigation inspection is to determine the “strength” of the house should it experience strong winds. As a resident of South Florida it is mandatory to have this experience due to the increased risk of hurricanes.
Elevation Certificate: An elevation certificate is provided by FEMA that addresses your homes elevation.If you live in high-risk flood zones, an elevation certificate allows your insurance agent to ensure you are covered in case of flood.
Mortgagee Clause: The mortgagee clause contains the name and information of the lender (whoever is providing your mortgage loan) as well as the loan number.
What factors affect my home insurance premium?
A premium is the amount you must pay up front in order to receive insurance coverage. Typically, you’ll pay you mortgage insurance premiums monthly right along with your mortgage payment. The amount of your premium will change based on the following factors:
Homes Characteristics: home’s age, type of structure, roof, garage. Older homes tend to have a higher premium.
Location: As much as South Floridians love the water, homes by the beach or in locations susceptible to extreme weather will have a high premium. On the contrary, your home insurance premium can be positively affected if close to a fire station.
Protective Devices: Devices such as burglar alarms, smoke detectors fire extinguishers and sprinkler systems all play a role in reducing your home insurance premium. On the contrary, swimming pools, trampolines and aggressive dog breeds can negatively affect your home insurance premium.
Credit Score: Your credit history can also paly a role in reducing or increasing your home insurance premiums. Typically, people with good credit file fewer claims than homeowners with poor credit.
What is excluded in a homeowners policy?
Typically earthquakes, flood, hail, hurricanes, tornadoes and wildfires require a separate insurance for home coverage.
Living in Florida, it is important to have a clear understanding of what you policy covers. Most property or home owners insurance policies with cover for losses resulting from hurricanes with the exception of floods. Check with your local insurance agent to learn about the details of your policy.
Why should I keep up with inventory on the house? And how do I do it?
Let’s say your new home were to catch fire, and you submitted a claim to your insurance agency for damages and lose. This will be a much more difficult process if you don’t have an up-to-date home inventory.
By making a list of your possessions, describing each item and noting make and model, it will make the claims process seamless. We also suggest taking photos or video of each room and describing the contents throughout the house.
Have questions? We have answers. Click here to submit your question or request a quote.
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Pettineo Insurance Agency provides homeowners insurance in Fort Lauderdale, Lauderdale-By-The Sea, Pompano Beach, Oakland Park, Boca Raton, Hollywood, Coral Springs, Tamarac, Sunrise, Hollywood, and all of South Florida.