One of the most important aspects of buying a new custom Florida home is taking steps to protect it for the present and future.
You do this by acquiring a homeowners insurance policy. We at ICI Homes know insurance isn’t the most scintillating topic, but it’s a vital one. Homeowners insurance protects what is, for most of us, our largest financial investment.
Realizing you need it is one thing. Knowing how much and how to get it are two different steps. Here are some key takeaways before we jump in.
Key Takeaways
Homeowners insurance protects your biggest investment from disasters, damage, theft, and accidents. It’s essential to consider whether you finance or pay cash.
Mortgage lenders typically require proof of insurance before approving your loan, making it a key step in the buying process.
Shop policies through trusted insurers, online tools, or independent agents who can compare options for your specific needs.
Be sure your policy includes total loss coverage, contents protection, and adequate deductible and liability terms for your custom Florida home.
Here’s how to find the homeowners insurance you need.
Why you need it
Let us count the ways, natural disasters, fires, leaks, lightning strikes, crimes (theft, arson, etc.), accidents, innumerable emergencies, a palm tree falling on your roof, and so on. Homeowners insurance means you won’t be the one paying to remove the palm, then repair the roof. You’ll pay a pre-determined deductible and the insurance company pays all the repair costs.
If you’re a first-time buyer, homeowners insurance works like other forms of insurance. You pay an annual amount for your policy (either one payment or smaller amounts monthly), and your policy is active and ready to use.
Your mortgage lender will require it
Most mortgage lenders want to know you’ve acquired homeowners insurance before they approve your home loan. They’ll also want proof of it, otherwise known as an insurance binder.
Why? They’re on the hook for the money they loan you. If your home suffers damage, the lender loses too. You’ll both want it back in mint condition and homeowners insurance does that.
Even if you buy your new custom Florida home in a cash transaction, it’s smart to protect it. No matter how you pay for it, don’t risk being uninsured. Have homeowners insurance ready to go.
Where to find homeowners insurance
If you’re a homeowner satisfied with your current policy, see if the same company can cover your new custom Florida home.
Ask friends, family members, ICI Homes sales associates and future new neighbors for their recommendations. Or, cruise insurance companies’ websites for online quotes.
Another option is working with an independent insurance agency. These folks take the information about your new custom Florida home and do all the work. They’ll compile quotes from various companies for you to compare and contrast. Try Florida Independent Insurance Agents or the Independent Agents & Brokers of America, Inc.
There’s no set answer, but there are common options and parameters.
Your coverage will depend on where you live, what kind of home you’re buying, its size, costs and materials, and perhaps its proximity to emergency services.
Consider total loss replacement, coverage of interior contents, and perhaps what’s known as “riders” (extra coverage for inherited jewelry, for example).
You’ll want to know what your deductible cost will be, and the coverage limits for each prospective policy.
Ready for your new custom Florida home? Talk to us here.
You do this by acquiring a homeowners insurance policy. We at ICI Homes know insurance isn’t the most scintillating topic, but it’s a vital one. Homeowners insurance protects what is, for most of us, our largest financial investment.
