A Review of Your Home Insurance Policy

Your home is likely among the priciest purchases you will make, so protecting it with the right insurance policy is crucial. You want to be sure you have the right coverage to protect you in the event of a catastrophe.

If you own a home in Florida, then you know just how tough it can be to obtain adequate and affordable home insurance. Insurers here are becoming stricter about who they decide to insure, as they try to lower their risks in our hurricane-prone state.

Understanding Your Policy

Horizon Public adjusters

Section One

Coverage A: Dwelling

Dwelling coverage pertains to the primary dwelling and attached structures such as fences or garages.

Coverage B: Other structures

This includes detached structures such as sheds or detached garages. The limit of this coverage is 10% of your Coverage A limit.

Coverage C: Personal property

This covers your home’s contents or other personal property. This also covers personal belongings you carry while traveling. The limit of this coverage is 50% of your Coverage A limit. Another important thing to consider is the amount at which your belongings will be replaced. Actual cash value is standard amongst many policies, though full replacement cost coverage can typically be added at an additional cost.

Coverage D: Loss of use

Loss of use provides coverage in the event your home is rendered unfit to live in. It covers additional living expenses and will pay for temporary living arrangements up to the policy limit.

Section Two

Coverage E: Personal liability

Liability coverage is a vital component of a homeowners insurance policy. It protects you against damages or injuries caused by you or occurring on your property. Liability insurance follows you around the world as well, meaning you would be covered— in most cases — if you were to accidentally injure someone else while on vacation. In some cases, an umbrella policy can be added to provide increased personal liability protection.

Coverage F: Medical payments to others

This coverage covers some of the medical expenses of others who may have suffered bodily injury or property damage at your home. Sometimes known as guest medical coverage, it usually provides a baseline of $1,000 in coverage that can often be increased for an additional premium.

Actual cash value / replacement cost value vs replacement cost

Actual Cash Value (ACV)

Many basic policies cover a home and the personal property therein at actual cash value. Actual cash value factors in depreciation when considering how much to pay out for a covered loss. On the other hand, replacement cost value covers the actual cost to replace your dwelling or personal property without factoring in depreciation. This can be added for an additional premium.

Replacement cost value (RCV) is the amount it costs to replace your property with new property, without deducting for depreciation. Meaning in the event of a loss, we’ll pay you enough to replace your damaged property with new property of the same type, kind and quality and you won’t have to worry about paying more than your deductible to cover the damage.

Did you know that you may have a maximum pay out of $10,000 on your insurance for water damage?

Over the last few years, many Florida insurance companies have implemented a $10,000 limit on the most they will pay out for a water damage claim other than wind or hurricane. Over the last few years, many Florida insurance companies have implemented a $10,000 limit on the most they will pay out for a water damage claim other than wind or hurricane. Sadly, other than hurricanes, the most common claim in Florida is plumbing. “This policy provides up to $10,000 of coverage due to water caused by accidental discharge of water from plumbing or appliances.

At Horizon, we have seen too many people faced with a water cap claim that caused financial difficulties. If you have a $10,000 water damage claim, contact your insurance agent today. You can also call Horizon and we will be happy to do a review of your policy at no charge.