HOMEOWNER’S INSURANCE…DO YOU REALLY KNOW WHAT YOU HAVE?

When it comes to my homeowners insurance, I think that I’m about as confused as the next person, and to be honest, I can’t really tell you much about the coverage that I have.

I do know that I’m not doing the bare bones minimum and have flood insurance, although I wonder whether it is really worth the expense, since we are about a mile from the Gulf of Mexico. In my 15 years here in Naples, Florida and all the storms that I have been through, I have never had any of the houses that I have owned come near a flooding stage. That includes when we lived on Bougainvillea Road, some four blocks from the beach. I guess that since the premiums for flood are relatively low, about $400 to $500, it is worth having. The only other thing that I do know for sure is that the homes that I have are insured for replacement cost and not actual cash value of losses.

I recently read an article that had some astounding facts from the people surveyed:

• 68% think that vehicle such as cars, boats and motorcycles stolen or damaged on their property are covered.
• 22% feel that their pets are covered if they are injured from a storm or stolen.
• 34% think that they are covered from mold damage, a huge problem here in Florida.
• 35% feel that they are covered from earthquake damage.
• 31% think that they are covered from termite or other insect damage.
• 51% believe that they are covered from a sewer or water line break.

It certainly behooves us to fully understand exactly what we are covered for, so that there are no surprises when the ‘big one’ hits. People who feel victim to Katrina learned many a lesson the hard way.