Understanding The Difference In Property Insurance
There are many Florida homeowners who are unaware of the concept of surplus lines of insurance. This is because these types of insurance policies are often times overlooked by consumers. In fact, there are millions of homeowners in the state of Florida that have not heard of surplus lines of insurance. What is a surplus line?
egginsurance might be asking yourself if this type of insurance exists, and if so, what exactly does it cover?
Surplus lines of insurance, otherwise known as the non-recourse policy, are a type of homeowner's insurance that pays out when the coverage is no longer required by Florida law. For example, there are homeowners in the state of Florida who own both a boat and land in which to live. However, if the boat is damaged and no longer fits on the land, the owner will need to purchase another boat in order to remain insured.
There are several different surplus lines of insurance that can help Florida homeowners protect their financial interests should some unfortunate incident occur. Homeowners are protected in a variety of ways when this happens. Depending upon the particular insurance policy, the policyholder may be compensated for lost income, medical expenses and repair costs. Other types of compensation may also be available, including replacement cost or cash surrender value. Once the policyholder has fully recovered from their losses, they can decide whether or not to surrender their policy and terminate their insurance.
As with all types of insurance, there are advantages and disadvantages to each type. For example, when a home is damaged and there is no viable living space, the home is generally covered by this type of insurance. Likewise, should a home or business to be damaged by fire, flood, lightning, hurricane, or vandalism, liability coverage will usually pay for property damage and lost income. The amount of money that you receive from your policy, however, will depend on the policy limits and the company you purchase it through.
Policies are available in both direct and preferred provider arrangements. In a preferred provider arrangement, the insurance company that issued the surplus lines will select an agent to represent the policyholder on all matters related to surplus lines of insurance. When the policyholder needs to file a claim, the agent will forward any request to the insurance company's underwriter. Should the company approve the request, they will provide a check directly to the policyholder.
The second arrangement is referred to as direct surplus lines of insurance. In this case, the homeowner will designate one representative to manage all requests for surplus lines of insurance for their home. Should a claim be submitted, the homeowner will be required to reimburse the insurer. However, if the claim is denied, the homeowner is not responsible for paying for the claim.
Many homeowners who have policies in place are satisfied with the level of coverage provided by their insurance policies. While they are aware that the policies do not cover everything they could need to be adequately covered, they are content with the level of protection afforded to them by their insurance companies. Those who would need additional protection consider purchasing additional property insurance policies that specifically cover items that are not included with their homeowner's policies.
For those homeowners who are not satisfied with their current insurance company or would like to replace some of the coverage provided by their current policies, surplus lines insurance in Florida is a viable option. The company can customize a policy to meet the individual's needs and preferences. Homeowners should speak to a representative of the company before making a purchase to determine the level of service the company can provide. With surplus lines insurance in Florida, you have the opportunity to protect your home at a low cost while enjoying the peace of mind associated with knowing you are adequately protected against a variety of different risks.