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Many of these state specific insurance requirements center around the risks that are particular to that state.
For instance, in California there is a focus on earthquake damage, in Louisiana a focus on flood damage and in Florida a focus on hurricane damage.
These state specific insurance consideration are designed to protect both the insurance companies operating in those areas and to equally protect property owners from the natural disasters that they are most likely to encounter.
Florida homeowners should educate themselves about what types of coverage are available.
The state of Florida does have minimal requirements for hurricane coverage, but carrying only the minimum insurance that the law requires is not always in the best interest of the homeowner.
It is important to understand hurricane coverage and to get the insurance that you need to protect yourself, your family, your home and your possessions.
Extended Replacement Cost Coverage When disaster strikes, such as in the event of a major hurricane, it can often be difficult to locate and procure building materials to rebuild and repair your damaged property.
It is just a fact of life that, after such an event, there will be more of a demand for materials than there will be a supply.
The wider the area hit by the hurricane, the greater the shortage of supplies.
Supplies become, not just harder to find, but much more expensive.
Not only do building supplies become scarcer and more costly, but so does labor.
With such a high demand for skilled construction workers, it can be very difficult to get the right professional for the job.
As the demand for construction personnel rises, so does the cost of labor.
Because labor and materials are most expensive after a disaster, a homeowner often discovers that the cost of rebuilding and repairing damage is greater than the assessed value of the property and the amount for which that property has been insured.
Extended Replacement Cost Coverage is the solution.
Extended Replacement Cost Coverage can pay out as much as 20 percent above the limit specified in the insurance policy.
Because Florida homeowners are at such a high risk of property damage from hurricanes, it is important that you discuss adding Extended Replacement Cost Coverage to your existing Florida homeowner's insurance policy with your insurance agent.
Hurricane Deductibles It is also important, as a Florida homeowner, that you fully understand just how much of the cost of repairs you are required to cover before you insurance kicks in.
The Florida Insurance Council lists 70 percent of homeowner's insurance policies as having a 2 percent deductible applied to their hurricane coverage.
2 percent may not sound like a lot, but if your policy is for $500,000 then you are looking at paying $10,000 out of pocket before you insurance will come into play.
When considering your insurance needs, you need to make sure that you will be able to pay your deductible in the event of a hurricane.
If you don't feel that you can save enough to cover your deductible, you might consider finding a policy with a higher premium and lower hurricane deductible.
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