How to Determine the Right Homeowner Insurance For Your Family

Homeowners’ insurance is often an afterthought, but a properly crafted policy can help prevent financial ruin in a disaster. This article will walk you through determining the right coverage for your family.

You want to have enough homeowners insurance to rebuild your home, replace personal property, and cover liability in a disaster. However, every insurance provider weighs pricing variables differently, and the more optional coverage you add, the higher your premium may be.

Coverage Limits

The best homeowners insurance in Florida protects your most significant investment in life, and sufficient coverage can protect your financial assets against damage from disasters such as fire, hurricanes, lightning, theft, and even vandalism. Standard homeowner policies generally offer coverage limits for the structure of your house, personal property, and liability. Your family’s needs and financial situation will influence what coverage amounts are most appropriate for you. Generally, the coverage amounts provided by a standard homeowners policy are based on percentages of your extended dwelling coverage (typically set at 20-30% of the total insured value of your home). Many insurers also provide a specific amount of additional living expenses (ALE) for expenses such as hotel bills and restaurant meals when you can’t live in your home after a disaster. These ALE coverage amounts can vary from company to company, so review them carefully and consider purchasing a jewelry or expensive item floater to insure specific high-value items with higher coverage limits.

Another coverage option is a supplemental dwelling unit endorsement, which can add coverage for a shed or other free-standing building on your property. Some companies also offer optional add-ons such as guaranteed or extended replacement costs. These are more costly and only cover your dwelling at a specified percentage over the original policy limit, but they can offer much-needed financial protection for your home.


Homeowners’ insurance premiums are based on many factors, but one of the biggest is how much the insurer must pay out of pocket if you make a claim. Typically, the higher your deductible, the lower your premium. However, be careful to select a deductible that is only what you can comfortably afford to pay in the event of a claim. Some policies have percentage deductibles, while others have fixed dollar amounts. If you have the financial means to pay a higher deductible, it may be worth it to save on your home insurance premium each year. Just be sure you have an emergency fund to cover the high deductible cost should you need to file a claim.

It’s also important to note that you could save on your homeowner’s insurance by changing companies. Just be sure you speak with an independent agency that deals with multiple home insurance providers so you can get the best possible deal. It’s also a good idea to speak with other policyholders and ask them about their experiences with different home insurance companies. This can give you an insider’s perspective on which companies are doing the best work. It can also help you avoid a company that must treat its customers fairly. Customer retention rates, online reviews, and testimonials can determine this.

Add-On Coverage

Buying home insurance is an important financial decision. 

Standard homeowners policies include basic coverage for damage to the house and its contents. You might need additional coverage if you have a pool or buried utilities on your property. In addition, many people who work from home or own rental properties need extra living expenses (also known as loss of use) coverage to pay for temporary housing while repairs are made.

Policy add-ons, also called riders or endorsements at some companies, let you expand your policy’s protection for things like a swimming pool or an in-law apartment in the backyard. They also cover identity theft and cybercrime, which are excluded from most homeowner policies.


Homeowner insurance is necessary for many homeowners, but it’s important to understand what the policy does and doesn’t cover. Exclusions are the events or items your insurer won’t protect you from with financial reimbursement. Exclusions are typically listed directly in the insurance policy to give you a clearer understanding of what your coverage is limited to.

Some examples of excluded losses are wear and tear, obvious or preventable damage, and negligence. For example, ignoring a small leak in your roof for months, leading to wood rot, could be considered negligence and thus would not be covered by your home insurance. This is because your home insurance policy expects you to take care of any issues that arise promptly to avoid more extensive damages.

Other exclusions are based on criminal activity. This is because insurance companies would be at a loss if they had to pay out all of their honest customers’ premiums to cover the few dishonest claims made against them. This is why these types of claims are often denied – like trying to claim that you set fire to your property to collect an insurance payout.

Identifying the perils your home insurance excludes can help determine what additional policies or riders may be available to protect your investment. For instance, many insurance companies offer specific endorsements for high-value items that are usually only included in the home insurance policy when listed individually.