Because Florida is a hurricane prone area, you should be aware of options in coverage that may pay for itself. Here are a few coverages to talk to your agent about:

Extended Replacement Cost Coverage:

After a catastrophe, like a major hurricane, building materials tend to become scarce. The larger the affected area, the more serious the problem. In addition to scarce building materials, the construction workers who rebuild and repair the structures become more difficult to secure and their rates rise accordingly.

Extended Replacement Cost Coverage will pay for the increased cost in materials and labor above and beyond the policy limit. Insurance companies may pay as much as 20% above the policy limit, depending on the insurance company. It is in your best interest, as a Florida homeowner, to talk to your agent about having this coverage endorsed onto your policy.

Hurricane Deductibles:

According to the Florida Insurance Council, 70% of Florida homeowners have a 2% deductible applicable to their hurricane coverage. This could prove to be a hefty dollar amount. For example, if your hurricane policy limit is $300,000 with a 2% deductible, you will be responsible for the first $6,000 of a hurricane loss.

Flood Coverage:

The standard homeowners policy does not include coverage for flood damage. Storm surge from a hurricane is also considered flood damage and not covered by your homeowner’s policy. This coverage must be purchased separately through he Federal Government’s National Flood Insurance Program. If you’re not sure how to go about getting the coverage, speak with your agent for more information

If you are having a difficult time in securing homeowners insurance because your home is located in what is considered to be a ‘high-risk’ area, you will be able to obtain insurance through the Citizens Property Insurance Corporation. In addition to providing insurance for homes located in high-risk areas, they provide insurance for those Florida homeowners who cannot find coverage elsewhere in the private insurance market.

Homeowner's insurance policy coverages:

actual cash value vs. replacement cost. We'll start off with actual cash value and replacement cost, because if this coverage isn't specified in the quote, homeowners could be in for some serious trauma if there is an insurance claim. Simply put, actual cash value includes depreciating the value of items at the time of the insurance claims assessment. The depreciation calculation varies by the item insured, the insurance company and the individual claims adjuster.

Replacement cost value does not depreciate the value of items insured at the time of the insurance claims assessment. Replacement Cost is the actual cost to replace an item destroyed or damaged in the event of a covered loss. Replacement Cost increases the cost of the homeowners insurance quote. But if there is ever a need to file an insurance claim, policyholders will be glad they found home insurance with this coverage. Note: Receipts, video and itemized inventories can make the insurance claims process a lot easier and more expeditious process.

What's included in the homeowner's insurance quote?

Building. Find home insurance that includes Fire, Lightning, Wind and Vandalism coverage. A limited extension of coverage for outbuildings should also be included in the homeowners insurance quote.

What's included in the home insurance quote and personal property insurance policy?

Contents insurance or personal effects insurance covers most of the items in the home, including furniture. A limited extension of insurance coverage for personal property off-premises (i.e., personal effects in a kid's dorm room or in the car) is included in the personal property insurance, too.

What's excluded from the home insurance quote?

PCs and phone systems are generally excluded, although special limits of coverage at an additional premium may be available for these items. Wear and tear, backed-up sewers and earthquakes are almost never covered by a home insurance quote. Clearly, anything fraudulent won't be covered by personal property insurance, either.

Special limits in the homeowner's insurance policy.

Glass, jewelry, furs, and most valuable collectibles only receive a minimal pay-out from personal property insurance if damaged by a covered loss and reported in a homeowner's insurance claim. But, these items can be added to a "rider" (also known as scheduled personal property insurance or a personal property insurance floater) for policyholders who need broader coverage than what's found in a standard home insurance policy.

Before finding home insurance, review information available at state property insurance associations and from the state department of insurance.

• The state department of insurance provides consumer information about property insurance.
  
• The Insurance Information Institute provides more information about homeowners insurance for consumers.

To get a better understanding of how to find home insurance, talk to an insurance agent or a licensed agent at an insurance company. They can discuss the ins and outs of the homeowner's insurance policy, including insurance coverage, limits, and exclusions. Research how to find home insurance policy and company information at state departments of insurance and at consumer-oriented websites.

With the high cost of insurance in South Florida, it is more important than ever to make smart and informed decisions about your insurance needs. Atlantic Insurance Agency’s goal is to help assess your needs so that you can make the most informed decision possible and protect your family by purchasing quality Home, Auto and Life insurance products. Atlantic Insurance Agency is a full service agency that enjoys a reputation for excellence in meeting the insurance needs of our customers. Their qualified staff has close to 40 years of combined experience in the South Florida Area. They have the skills and knowledge of insurance products to help you make the best decisions when it comes to your insurance needs. They represent a large array of "A" rated carriers allowing them to offer you only the best selection of insurance products.

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