Home Insurance Add Ons - What You Need To Know

Do you have the right type of Tampa home insurance? Could your policy not be providing you with enough of the coverage you really need? That's the case in many situations. Add-on policies are those you can add to a basic homeowners policy to provide you with additional protection from the what if situations that could affect you.

Did you know that according to the Insurance Information Institute that six percent of all insured homes had a claim in 2010? 97 percent of those claims involved damage. In some of these cases, the use of add-on policies help to provide these individuals with the protection necessary. What should you have? Consider the following.

Extra Coverage for Valuables

In some situations, individuals will have highly valuable items in their home. For example, you may have a valuable painting, high-tech computer equipment, or items related to your hobbies that are expensive to replace. Do not expect a standard homeowners insurance policy to cover these things if they are not specifically added to your policy. Whether or not it raises your costs depends on many factors, including how much value these items add. If not specifically included, and these items are lost in a fire, you could lose the financial value.

Flood Insurance

In some areas, having flood insurance is a very important thing, but it may not be covered in your policy. Whether or not flood insurance is provided depends on the risk in your area. Most companies do not include flood insurance to those who are in flood zones because the risks are too high. You may be able to add on those types of coverages if you do not have it so your valuables remain protected even in the event of a flood.

Business Insurance

Do you have a home business? Do you store your business equipment, supplies, inventory, or other items in your home? If a fire occurred, a flood happened, or someone broke in and stole that very expensive equipment you use to repair vehicles, would your business be able to financially manage the loss? Most homeowners insurance policies do not provide coverage for business equipment. You may need to add this on or get a separate policy to include it.

What Else to Consider

While you are doing this, also take the time to compare how much coverage you have. If your homeowners policy is not valued at the combined value of your home and any assets in your home, at the very least, you could be left out when an event happens. SmartMoney advises that individuals should have 100 percent coverage for rebuilding the home, since devastating incidents can leave you without the ability to rebuild your home. At the same time, consider any exclusions on your policy, which are items that the company specifically does not cover.

To find out if you need more homeowners insurance or a better policy, contact Adcock-Adcock Insurance Agency today at 813-933-6691.

Your Home Insurance Covers More Than Your Home

Depending on your home insurance schedule, your homeowner’s policy may cover things like personal property that is damaged while not in the home and medical expenses of third parties injured on your property due to your negligence. When you go in to talk to your agent about homeowner's insurance, be sure to ask about the different policy schedules and which one is right for you.

Schedule A  (HO-1)

While schedule A insurance used to be the industry standard, it has fallen out of favor and isn’t nearly as widely available as it used to be. This insurance covers the structure of the home as well as its contents against the 10 major disasters that can befall a home, including vandalism and fire.

Schedule B (HO-2)

Certain homeowners need to take out protection against particular events like heavy snowfall causing roof damage or power outages. This is usually an add-on to a standard home policy and is used in areas where extreme conditions warrant it. It is sometimes used as an individual home policy on mobile homes as the premiums are low and the coverage can be written to cover the major causes of mobile home damage.

Schedule C (HO-3)

Schedule C home insurance covers the entire home and its contents, including any injuries that occur while in the home. In addition, it covers flood damage, damage from war and earthquakes. These inclusions make schedule C one of the most comprehensive and expensive choices.

Schedule D (HO-4)

Schedule D is renter's insurance that covers the same items that are covered for owners in Schedule B and C.

Schedule E (HO-5)

While all the policies up to this point only cover the physical home and its contents, Schedule E covers the entire property. So if a person is hurt while in your driveway or yard, this policy will cover it. It also covers damage to fences and outbuildings and their contents.

Schedule F (HO-6)

This is specific household insurance comparable to Schedule C for Condominium owners.

Schedule G (HO-7)

If you own a mobile home and choose not to take out Schedule B insurance, the more comprehensive Schedule G is your best choice. This policy covers the structure and all belongings, and if you include a float policy, it can also include outbuildings such as sheds and carports.

Schedule H (HO-8)

Schedule H is the same policy as the Schedule A policy with the only difference being that the home will be paid out as a current cash market value instead of a replacement cost value. This policy is usually used on hard to replace older homes. Taking out this policy instead of a Schedule A could be the difference between having all of your losses covered and just a portion of them.

Schedule I (HO-9)

Schedule I insurance is used for older homes. It is often a Schedule C policy with special provisions for leaky plumbing coverage, electrical systems coverage and insect damage, although it can be tweaked to account for any area-specific  peril.  

As you can see, there are several types of home insurance that you can purchase. Which one is right for you depends on the amount of coverage you are looking for, and the type of home that you own. By far, the most common insurance is the Schedule C or E option, although many homeowners would do well to consider additional riders or floater policies  to secure complete coverage.

For more information about Tampa home insurance, give Adcock-Adcock Insurance Agency a call at 813-933-6691.

The Cost to Rebuild Your Home can Increase

When taking out a Tampa home insurance policy you may think that the limit for the dwelling coverage is based on the property value of your home. Instead, it actually should be based on the cost to rebuild your home—a significantly different number.

Many people don't realize that the appraised value of their home could be totally different from the home’s rebuilding costs. The appraised value takes into consideration your home as it currently is along with the real estate market as a whole in your area. But rebuilding a home takes materials and manpower that will be priced based on many different factors, all of which are variable. For example, depending on current output for homebuilders, the cost of materials to rebuild a home could be quite high whereas in a depressed housing market they may be lower. Unfortunately, if your limits don’t take this fluctuation into account, you could quickly find yourself underinsured.

Another consideration in the cost to rebuild your home is any change in codes that may have taken effect since your home was originally built. As codes requirements become more stringent it may become more expensive to rebuild.

It's important to remember that the cost to rebuild your home is not a static number and to periodically check for potential changes in rebuilding costs, such as the costs of materials and labor which can change many times throughout the year. It's impractical to check the cost to rebuild monthly, but you can ensure that you check it annually before your home insurance policy is renewed and then assess the value of making adjustments.

If you aren't sure how to estimate rebuilding costs for your home or you have other questions or concerns about your home insurance policy, give us a call 866-933-6691. We can ensure that your home insurance policy offers you the coverage you need with minimal gaps and we can help you determine more accurate limits so that you get a sufficient benefit after going through an insurable incident.