With the rising cost of homeowner's insurance in Southern Florida, most people are not aware of what exactly they are insuring.

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

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.

To find out more, contact an agent at the All Risk Insurance Group.

All Risk Insurance Group

123 NW 13th Street, Suite 202

Boca Raton, FL 33432

561-395-5220 (Tel)

561-447-2250 (Fax)