Insurance: Make Sure It Fits

Posted by Carlos German on Friday, February 21st, 2014 at 3:00pm.

Many people assume that homeowners’ insurance policies are one-size-fits all, but the same care should be taken to protect a buyer’s investment as the care that went into buying just the right house.  An insurance policy should be custom tailored to fit the needs and preferences of the home owner. 

For example, a property used only by the owner as a second home could have a policy much like that of an owner who lives in his home full-time.   However, if the owner decides to rent his second home to others when he’s not using it, then a different type of policy is required.

Just a few of the basic factors that determine how the insurance fits the owner and his property include the home’s cost to rebuild, its location, the shape of the roof, its wind-resistance, the age of the home – and maybe even the age of the owner!  

Then, the uniqueneeds of the owner and home must be considered.   The owner of a home that’s rented out on a semi-regular basis will want increased liability coverage for added protection.   If a home is in a “hazard” flood zone, or even a low-lying area, then separate flood insurance is called for.   If a home is located on the coast, separate insurance for wind damage may be required. 

Among the choices for the home owner are the deductible amounts.  Some home owners want very low premiums, so they opt for higher deductibles.  When an event occurs, they may find that they cannot meet these deductibles and the house remains unrepaired.  In the case of an emergency, where there can be many unforeseen expenses, it might be best to have a lower out-of-pocket expense - even if it means paying slightly higher premiums.

Policies must be designed to benefit the home owner, but balancing all of the variables can get overwhelming and confusing, so ask questions.  An experienced agent has the ability to custom fit your coverage to your needs and help you make informed decisions about your options.

Like shopping for anything else, it’s worth the time to get the best fit. 

This article has been contributed by Kathy Longtin, insurance agent with P Fudge & Associates, Inc. Feel free to contact her at 321.972.9920 or  kathy@fudgeinsurance.com for further details and information.

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