Cheap homeowner's insurance in Florida that doesn't adequately protect the property owner really isn't a bargain. This is not a decision that should be made based solely on price since the policy must provide adequate protection for what is likely to be the largest single purchase that someone will ever make.
Available Homeowner's Coverage in Florida
Before making a choice about Florida homeowner's insurance coverage, consumers should educate themselves about the coverage options available to them.
Homeowner's 1 Insurance
Homeowner's 1 (HO-1) coverage is not offered by all insurance companies licensed to sell policies in the state. This type of policy offers very limited protection from damage caused by wind, smoke, fire, and lightning, as well as theft.
Homeowner's 2 Coverage
Homeowner's 2 insurance covers the same losses as the HO-1 option, with added protection against losses due to:
- Appliance damage caused by electricity
- Falling objects
- Frozen pipes
- Structure collapse due to ice or snow
- Water damage from a ruptured water heater or plumbing
Homeowner's 3 Option
This option, which is also called HO-3 or a Special Form Policy, is the type of protection that most homeowners in Florida have in place. This all-risk insurance pays out on claims for losses caused by any events not specifically excluded in the policy language.
Tenant's or Co-operative Owner's Coverage
Tenant's or Co-operative Owner's coverage (HO-4) covers that contents of a dwelling. It also protects the occupant against personal injury claims made by visitors to the unit.
Homeowner's 5 Insurance
Florida residents who choose HO-5 coverage provides a similar level of protection to the HO-3 option, with the addition of contents insurance.
Condominium Owner's Insurance
An HO-6 policy is for condominium unit owners. It provides protection against the same types of losses as a HO-4 policy.
Homeowner's 8 Coverage
The HO-8 policy option provides a basic level of protection that is similar to an HO-1 policy. The difference between them is that the HO-8 pays out a set cash value instead of the full replacement cost of the home. It is commonly used in situations where market value of a home is below what it would cost to replace it.
Finding Low Rates on Florida Homeowner's Insurance Coverage
A person who is looking for cheap homeowner's insurance in Florida should first consider how much coverage he or she needs. Once a buyer has made that determination, the next step is to get quotes from several providers for that type and level of protection.
Going online can be an effective strategy to find the best rates on homeowner's insurance since a customer can get quotes from different providers at any time that he or she finds convenient.
When looking for the best deal on homeowner's insurance coverage, a buyer should ask about discounts that the companies offer to their policyholders. Buying a homeowner's policy from the same company that holds the customer's car insurance may mean that he or she will qualify for a discount on both policies.
Raising the deductible level on a homeowner's insurance policy is an effective way to keep premium rates down. When a policyholder is willing to pay more toward the cost of a claim, the insurance company is assuming a lower level of risk and can offer better rates.
Home Insurance Companies in Florida
The following are examples of companies licensed to sell homeowner's policies in Florida:
Rather than focusing on finding cheap homeowner's insurance in Florida by looking at cost alone, a homeowner is much better off trying to find the best price for the actual level of protection that he or she needs.