Select Page

Homeowners Insurance Versus Mortgage Insurance

Florida may be a great place to live but people have to face many hazards due to its rough weather. Homeowners Insurance is very important for dwellers living in the Sunshine state. Homeowners insurance versus Mortgage insurance is very important for dwellers living. It covers events like fire, theft, vandalism, etc.

What is Home Insurance? 

A home insurance policy is a policy that covers your home against any damage or events causing damage. It also protects the assets that are within your property. There are two different coverage for protecting the attached asset and unattached asset of your house.


There are various types of insurance coverages that help cover various assets of your house. In Florida, home insurance is not mandatory according to the insurance blog. However, your mortgage lender will require you to have a home insurance policy before leasing a house. So, it is wise to have home insurance in Florida despite the state laws or any other state like home insurance to cover plumbing. Here are a few of the coverages in standard home insurance:

homeowners insurance versus mortgage insurance
  • Dwelling: Dwelling coverage covers the structure, built-in appliances and wall-to-wall carpet of your home from damage. In terms of your homeowners insurance, your “dwelling” means the complete structure of your house and any connected structures such as an attached patio or cellar. In the event your house is disfigured by a covered loss, this will help to cover repairs or any rebuilding that needs to take place as a result.
  • Personal Property Coverage: Your personal property coverage is an essential part of your home insurance or renter’s insurance policy. This type of insurance coverage can help keep your personal assets secured against damage from a covered loss or vandalism.
  • Liability Coverage: It is a type of coverage that covers you financially when you are liable after a guest encounters injury. For instance, a guest slips and falls on kitchen floor or a flight of stairs. If you’re found liable for their injuries, liability coverage may help pay for their related medical or legal bills.
  • Other Structure Coverage: It is a type of insurance coverage that helps pay to repair or replace structures other than your home, such as a fence, if they are damaged by a covered loss or peril.
  • Additional Living Expense: It pays for the additional price incurred by the insured party if they are unable to live in your home due to any covered loss.

Cost of Home Insurance

In the US, the average cost of home insurance is $1,445 annually but this rate may vary significantly based on the state you live, state laws, house location, and the rebuilding price. Sunshine State is one of the most expensive states in terms of home insurance. The average house insurance rate in Florida is $3,643 which is nearly $1,338 more than the average national coverage level of:

  • $300,000 dwelling
  • $1,000 deductible
  • $300,000 liability

There are many that affect the Florida insurance premium. For example, expect to pay significantly more if you live in a flood zone. Florida’s Office of Insurance Regulation has approved insurance rate increases as high as 33% in 2021 to successful insurance agency through an agency management system that has insurance software generated to insurance agency management system.