Homeowners Insurance

Home Owners Insurance:
 The coverage of house insurance you have depends upon the type of policy you have. Unlike auto insurance, where the policies are pretty much the same, homeowners insurance policies can be quite different, depending on the "form" number. The most common types of homeowner insurance policies are:

1. HO1 Basic or Standard policy
2. HO2 Broad form
3. HO3 Special (also called Deluxe, All Risk)
4. HO4 Renters policy
5. HO5 Enhanced Special Coverage
6. HO6 Condo policy
7. HO8 Older Home Policy

All homeowner insurance policies are "package" policies. You get a group of coverages packaged into your policy for one overall premium. They include coverage on your building, your contents (furniture, clothing, etc.) and liability insurance in case you are sued, under the same policy. The property coverage is shown under Section 1, while the liability coverage is described under Section 2.

There is no better way to understand your homeowner policy than to read it! We suggest you pull out your policy and find the parts to your policy that correspond to the following explanations:

A typical policy consists of three things:
1. The Declarations Page - that declares who, what and how much you are insuring, along with the date your coverage starts and the premium.
2. The Policy Booklet - printed pages that contain the details of coverages and exclusions.
3. Endorsements - separate pages, usually with endorsement numbers, that change (or endorse) specific parts of the policy.
Sometimes you are only given the original policy once in the beginning, then on renewal, to cut down expenses, you are just sent the dec. page (declaration page) with the bill. It's a good idea to save the original policies should you ever need to refer to them.

More Detailed Information:

The HO1 policy is very limited in coverage and is not being sold by most companies.
The HO2 policy covers the basic perils of fire, lightning, explosion, smoke, hail, aircraft, riot, glass breakage, theft and damage caused by vehicles. It also adds additional coverage to broaden your policy. Those perils include damage caused by rupture of your water or heating pipes, falling objects (such as trees), collapse of the building, limit electrical damage to appliances and others.

The HO3 policy is, by far, the most commonly sold policy. It covers everything the HO2 policy covers and more. Instead of listing the perils that are covered these policies cover all damage to the building except what is excluded. The usual exclusions are: wear and tear, termites, rotting, collapse of septic tank, flood, war, earthquake and a few others.

Some HO3 policies are referred to as "Deluxe" , "Special" , "All Risk" policies depending upon the company.

Most policies cover your contents or belongings only for the perils named in an HO2 policy so wear and tear and normal breakage is not covered for your furniture and personal belongings.
Be careful! Your homeowner policy limits coverage on some items.

To keep the cost of insurance down your policy probably has limits on certain items. Typical limits are:

• Cash - $200
• Jewelry - $1,000
• Firearms - $2,500
• Silverware - $2,500

Check your policy carefully. If you see you don't have enough coverage, find out how much it would cost to increase those limits or to buy special coverage.

Home Contents Insurance: 
In addition to special coverage for jewelry, silverware and furs, you can purchase specific coverage for such possessions as stamp or coin collections, fine arts, camera equipment, collectibles, watercraft and musical instruments, just to name a few.
We also have mobile home insurance coverage options.

IMPORTANT INFORMATION FOR ALL HOMEOWNERS: 
The misuse of the Assignment of Benefits (AOB) agreement by contractors is on the rise ! Please go to the links and be inform
Handout: What is Assignment of Benefits                                                                                                                                                                                                                       
Handout: Real Stories of Assignment of Benefits
Web Page: Homeowner Advisory - Assignment of Benefits
Blog Post: How an "Assignment of Benefits" Agreement Could Cost You Your Rights During Home Repair
Blog Post: Homeowners Guide to Assignment of Benefits
Blog Post: Beware of Assignment of Benefits on Your Home Insurance Claim

Please see our Blog on Protecting your Home from Water Damage. This article from  Safepoint Insurance  has the best description on what is involved in being sure that your home hot water heater is not going to suddenly cause you a huge water loss claim due to a sudden failure.  This type of water claim is probably by far the most prevalent type of homeowner claim that we see.    
We have seen claims go from a few thousand dollars up to over $100,000 and in one case on a Mobile home, the water loss totaled a fairly new mobile home. 
At Pritchards and Associates, we care for you and your property.

As we quote your homeowners insurance, have us quote your auto insurance for additional savings. 




Serving South Central Florida area.
Call us, stop by one of our offices, or fill out a quote from this page today to see where we can provide savings for you.