How to save as much as 50% on your homeowners insurance

The homeowners insurance rates in Florida have become out of control. Everyone is complaining about the rising costs of insurance in Florida . What most people are not even aware of is what exactly they are insuring. Coverage A, other structures, AOP deductibles... What does that even mean to the average homeowner? Most people never even look at their insurance policies, but leave it up to the discretion of their insurance agent. Whether you are with Allstate, Statefarm or Nationwide Insurance, it would certainly be beneficial to consult with an independent agent, such as All Risk Insurance Group, Inc. to see what other markets are available to you outside of the captive agencies. When a consumer does glance at their policy coverages, they are at a loss to understand what they are paying annual premiums for.

The following is an Insurance 101 quick course to assisting in understanding ahomeowners insurance policy:

Coverage A: Dwelling - This is the amount of insurance purchased to cover the loss of the structure— NOT THE LAND. The land will always be there and therefore is not insured. This does not reflect the amount that the house would bring on the open market. It is merely what it would cost to rebuild if a loss occurs.

Coverage B: Other Structures - This is any other structure on the property other than the dwelling. For example, a shed, a gazebo, a detached garage, a swing set, etc. This amount is generally 10% of the dwelling amount, however, it does vary for each insurance company.

Coverage C: Personal Property - This covers your contents. Your "stuff" so to speak. Anything that would topple out if you turned your home upside down. You can insure for full replacement cost which would give you full value to replace what was lost. Actual Cost Value would give you what you paid originally minus depreciation.


Coverage D: Loss of Use - In the event that your home should be rendered uninhabitable and you have to live elsewhere (motel or a rental apartment) you would be reimbursed for any out of pocket housing expenses.

Here is the biggest misunderstanding that I have found among my customers. What does AOP mean for my deductible? AOP or All Other Perils, means just that. Fire, theft, interior water damage (No, not flood damage. That is rising water. ) Interior water damage is leaky pipes or an exploding hot water heater. Generally there is a choice of $1000 or $2,500 for this deductible. The lower the deductible the higher the premium. The same rule applies for Hurricane Deductible (this means Wind or Hail). The standard deductible is 2% of the dwelling coverage A amount. That means out of pocket expense to you before your coverage would begin. However, one can choose a higher percentage deductible such as 5% or 10%, which would lower the premium, but would make out of pocket expenses extraordinarily high.

There are many things that you can do to reduce your premiums. We recommend to our customers to have a home inspection performed on their property. This can save based on the wind mitigation performed on the roof, shutters and overall construction of the home. We have carriers that offer a savings on homes built after 1995. Even the markets that we have for home built prior to that are competitive in price.

NO, YOU DON'T HAVE TO GO WITH CITIZENS. THERE ARE ALTERNATIVES.

We represent Universal Property and Casualty, American Strategic Insurance, Florida Peninsula Insurance, Federated National Insurance, United Property and Casualty, CHUBB and others.

The bottom line is trust your insurance agent, but be and "informed consumer".

Share:


About the Author

allriskinsurance

The All Risk Insurance Group, Inc. is one of the largest and most well established insurance agencies in the West Palm Beach area. We have...