homeowners insuranceHomeowners insurance covers losses and damages to your house and to assets in the home. Additionally, home insurance provides liability coverage against accidents in the home or on the property. At the ABC Dennis Insurance agency, our job is to make sure your home insurance matches your needs at a cost that fits your budget.

Why Do You Need Homeowners Insurance?

Homeowners insurance offers coverage for specific types of damage, such as damage caused by fires, lightning strikes, windstorms, and hail. But, it’s important to know that not all damages are covered by home insurance.

What Does Homeowners Insurance cover?

A typical home insurance policy covers losses due to:

  • Storm damage, windstorm, lightning, hail, hurricanes, and other natural disasters.
  • Water damage from leaks.
  • Roof damage.
  • Catastrophic Ground Collapse Coverage.
  • Fire damage.
  • Costs for personal property loss – can be at Replacement Value or Actual Cash Value.
  • Accidents in the home or on the property.
  • Additional living expenses of living away from home if you cannot live there due to damage from an insured disaster.

A standard homeowners insurance policy typically does not cover losses due to:

  • Flood.
  • Earthquake.
  • Normal wear and tear.

Besides homeowners insurance for standalone homes, there is also:

Is Homeowners Insurance Required?

Florida law does not require homeowners insurance, but most mortgages require you to maintain property coverage. Should you fail to do so, the lender has the right under Florida law to obtain coverage for you and add the cost to your loan payments. This is called a “forced-placed” policy which can be costly.

How Much Homeowners Insurance Do You Need?

The best way to determine how much homeowners insurance you need is to ask yourself. “What would it cost to rebuild my home and replace all my possessions, if I had to start from scratch?”

We recommend conducting a home inventory to obtain a good idea of the value of the contents. In addition to the furnishings, appliances, and electronics, estimate the cost of replacing clothing, jewelry, artworks, and other valuables.

And remember, you may need additional insurance beyond homeowners coverage for expensive items such as jewelry.

Replacement Cost vs. Actual Cash Value Homeowners Insurance

One of the most important concepts to understand about homeowners insurance is the difference between “replacement cost” and “actual cash value.”

  • Replacement cost provides coverage for the amount needed to replace or repair the damage.
  • Actual cash value only provides coverage for the depreciated value of the property.

Be aware that a homeowners policy that covers losses based on actual cash value will not supply enough money to rebuild your home and replace all your possessions, especially if you have an older home.

ABC Dennis Insurance Agency

ABC Dennis Insurance is an independent insurance agency established in 1997 that provides homeowners insurance for individuals, families, and businesses.

As an independent agency, we find the best coverage with the most competitive rates among multiple insurance companies. This is important because no homeowners insurance company can meet every insurance need. So, we shop multiple insurance carriers to find the coverage that best fits our customers’ every need.