Purchasing a home is one of the largest investments most people will ever make. Homeowners often borrow some or all of the purchase amount from a bank or other financial institution. These financial institutions may require buyers to obtain homeowners insurance to protect the property.
It’s helpful to understand what types of coverage are often included in a homeowners insurance policy. The policy may include coverage for accidents, damage caused by natural disasters, water damage, theft and may cover personal property.
Because Florida homes can be especially susceptible to damage caused by tropical storms, hurricanes, wildfires and other natural disasters, it is especially important for homeowners to understand the dollar limits for these types of claims.
Also, homeowners should be aware that these policies do not usually cover injuries caused by the intentional acts of the homeowner, flood damage caused by outside water sources and earthquake damage.
Insurance companies are required to act in good faith when they investigate claims. They are also required to pay for legitimate, timely claims for incidents covered by the policy. However, insurance companies sometimes deny claims without a valid reason for doing so.
Also, insurance companies usually can only cancel a policy if the homeowner does not pay the policy’s premiums, provides false information on an application or when there has been a change in the risk assessment for the property.
An experienced attorney can help homeowners by challenging claim denials. In addition, the attorney can provide representation for the homeowner in breach of contract lawsuits or where the insurance company acted in bad faith.