Owning a home is the ultimate dream for most people.  In fact, for many of us, it’ll be our most valuable asset. But have you ever thought about how important it is to make sure it’s protected with a proper home insurance policy? If not, you should. Statistics show about two out of every three homes in America are underinsured.

Don’t wait until a storm hits to find out you don’t have adequate home insurance coverage. 

To make sure you have the coverage you need, it’s key to understand your homeowners insurance policy. If you already own a home, you more than likely have home insurance coverage. And if so, a good place to start is to look at your Declarations Page. This is a helpful tool that provides an overview of your coverage. Here is a sample of what it looks like:  

Homeowners Insurance Policy Declarations Page

Coverage(s) Rundown: 

Coverage A – Dwelling. This is your physical home, simply put. Most likely if it’s part of your house, then it’s part of your dwelling. This is usually the total amount you’re eligible to receive for a covered loss to your home.  

Coverage B – Other Structures. You guessed it, this covers damage to other structures on your property as a result of a covered loss. These include things like fences, sometimes swimming pools, detached garages/carports, sheds, and walls.  

Coverage C – Personal Property. Think personal possessions for this one. It includes items like your furniture, computers, electronics, clothes or equipment that may have been damaged, destroyed or stolen due to a covered loss. Our advice? Always be sure to take a full inventory of your belongings.  

Coverage D – Loss of Use. We hope it doesn’t happen, but in the event your home becomes temporarily uninhabitable, Coverage D provides for additional living expenses. It includes payment for temporary lodging, food, and other expenses associated with being temporarily displaced. This sometimes happens when a fire or storm causes too much damage to safely reside in your home. 

Ordinance or Law. This is the cost to upgrade a home so that it meets the most up-to-date building codes after a covered loss. And it’s a percentage of your Coverage A.  

Hurricane Deductible. This is what you’ll be responsible for paying before your insurance company issues any payment for damage caused by a hurricane. Pending where you live, there may be different deductible mandates. However, if you live in Florida, it’s usually 2% of your Coverage A.  

Let’s talk Flood Coverage. Flood coverage provides protection for damage caused by rising water and storm surge. It’s not included in a standard homeowners policy and must be purchased separately, so be sure to talk to your Agent.  

It’s important to know not all insurance policies are created equal. For peace of mind, make sure yours is strong enough to withstand multiple storms and other unexpected curveballs that can leave you scrambling. The last thing you want is your insurance provider unable to pay your claim. Which is why at Swyfft, we have strong financial strength and highly rated insurance coverage. All coverage through Swyfft is ranked A- or better by AM Best or A’ (A Prime) Unsurpassed by Demotech.

Choosing the right insurance carrier is a big decision. Make sure to research your options and understand how they operate. Our biggest advice – Ensure the carrier of your choice has financial stability. The last thing you want to happen is that your insurance company is unable to pay your claim due to their poor financial results.