Saturday, October 23, 2021

Most homeowners are uncertain what home insurance covers

A home is the largest investment most people own. Naturally, homeowners want to keep it protected which provides peace of mind. This is the benefit of home insurance.

However, around 70% of U. S. homeowners are uncertain what is covered by their homeowners insurance policy according to a recent report by Plymouth Rock Home Assurance. Even more concerning, 20 % don’t know how much they are paying for homeowners insurance. And only 30% feel confident they know what is covered with their home insurance.

“Selecting home insurance can be intimidating, so homeowners often seek out low rates without checking on the type of coverage they are getting,” says Ellsworth Buck, Vice President of GreatFlorida Insurance.

What is covered?

Homeowners insurance protects your dwelling, your belongings and provides liability coverage for injuries that happen on your property.

Most mortgage lenders require home insurance for home buyers. Yet, the minimum home insurance your lender requires might not be enough. Also, some condo associations have requirements in their bylaws regarding homeowners insurance coverage minimums.

What is not covered?

Homes located in Florida are vulnerable to natural disasters such as flooding, hurricanes and tornados. These calamities cause an increased in premiums because these are not included with basic coverage.

Coverage can be purchased for disasters such as flooding, sinkholes and sewer backups. They must be purchased separately or as add-on coverage. Catastrophic ground cover collapse is mandatory in Florida however, comprehensive sinkhole coverage is optional.

“It is crucial for homeowners to regularly review their home insurance policy so they are paying for the adequate coverage they need, and not overpaying for coverage they don’t need,” says Buck with GreatFlorida Insurance.

Price seems to be the most important factor for homeowners selecting a policy. The National Association of Insurance Commissioners reports the average premium in the U.S. for a home insurance policy is $1,211. In Florida the average premium is the second highest across the nation at $1,951 according to the Insurance Information Institute, second highest in the country.

The primary factor that affects a homeowners premium is location. If you live in a hurricane or flood zone, expect to pay more. While location has a significant impact on home insurance rate, age, gender, marital status, credit score and claims history will also impact your insurance rate.

Be sure to sit down with a qualified insurance agent in your area before deciding on the home insurance you need. A local agent is familiar with the unique needs in your community and can help you get exactly what you need from your home insurance.

GreatFlorida Insurance has local agent across Florida who can answer your questions about home insurance while searching for the best deal and coverage available. Contact us today.

Ellsworth Buck
Since 2003, Ellsworth has served as Vice President of GreatFlorida Insurance, a network of independent, franchised insurance agents located throughout Florida. During his tenure he has helped the franchise grow to more than 100 independent locations state wide. He is a 20+ year veteran of the Florida Insurance industry and is a graduate West Virginia University, earning his M.B.A in 1984. He lives with his wife in Stuart, Florida. For more information visit:

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