No matter where you live, you need to prepare your home for any type of climate threat or natural disaster. And if you live in an area like Florida prone to hurricanes or other storms, it’s especially important.
This means making sure your homeowners insurance has you covered with the right amount and policies.
How much homeowners insurance do I need?
It all depends. You need the right amount of insurance that will:
- Cover the cost of rebuilding your home,
- Cover the cost to replace your belongings,
- And cover any costs of not being able to live in your home.
When trying to come up with a number, consider the following:
- Costs of construction
- Square footage of your home
- Type of exterior wall of your home
- Style of your house
- Type and materials of your roof
- Other structures on your property
- Any special features in your home
- Any improvements to your home
- Fees for repairing and rebuilding your home & other structures
You can figure out a rough estimate to rebuild this way: Take the square footage of your home and multiply it by the local per-square-foot building costs.
How do you figure out the building costs? Contact your local real estate agents, builder’s associations, or insurance agent for the costs in your area.
Does homeowners insurance cover natural disasters?
Yes, mostly. Standard policies cover incidents like:
- Fire
- Lightning
- Windstorms
- Hail
- Explosions
- Winter storms
What natural disasters does homeowners insurance NOT cover?
Standard policies DO NOT cover:
- Earthquake damage
- Flooding
- Sinkholes
- Hurricanes
- Other named storms
If you live in an area that experiences any of these, it’s important to get additional coverage.
Will my home warranty cover a natural disaster?
No. A home warranty covers repairs and replacement of major appliances and home systems. Read Home Warranties to learn more.
Do I need flood insurance if I don’t live in a high-risk flood zone?
Yes! 25% of flood insurance claims come from areas listed as moderate to low-risk flood zones.
Just think of it this way: Anywhere it rains is a potential flood zone.
And a small amount of water can do A LOT of damage. FEMA says only 1 inch of water can cause $25,000 of damage.
If you live in a low-risk flood zone, you’ll find flood insurance is generally affordable.
Won’t the federal government help me if my home floods?
Yes, the federal government has a program to help if the flood is declared a federal disaster. But the program is a low-interest loan you’ll have to repay.
If you have flood insurance coverage, your claim will not need to be paid back and will cover costs if a federal disaster is not declared.
Protect your family and home from natural disasters with the right homeowners insurance.
If you want to know more about homeowner’s insurance coverage, let us know. We’ll send you to the right people.
Your Team at Liberty Title Company of America
