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Homeowners Insurance Ins and Outs

April 12th, 2010 · 2 Comments

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M.A.M.I. Insurance
18851 NE 29th St Suite 101,
Aventura, FL 33180
Office 1-866-729-1274
Fax 1-866-251-3030
Cell 1-786-333-6464

Homeowners in Aventura, it will soon be hurricane season. There are many new homeowners in North Miami Beach, Sunny Isles, Hallandale, and Aventura that must understand the importance of homeowners insurance. These policies protect your home and contents from various perils. As soon as you purchase a home it’s a good idea to speak with a home insurance advisor at M.A.M.I Insurance, they’ll guide you through the various policies available.

We all dread hurricane season for the obvious reasons – the potential destruction is frightening. It’s a good idea to speak with a M.A.M.I. Insurance agent in Aventura to understand how hurricane season affects your ability to get home insurance. Typically, insurance companies make it difficult to get homeowners insurance during hurricane season or when a hurricane is looming. These are considered high-risk times. It’s best to speak with an Aventura insurance agent way before hurricane season begins.

Types of Homeowner Insurance Policies – Read More on Homeowners Insurance

Currently, the ISO has seven standardized homeowners insurance forms in general use, most Floridians will only use the following 4:

HO3 – All Risk Homeowner Policy
The typical, most comprehensive form used for single-family homes. The policy provides “all risk” coverage on the home with some perils excluded, such as earthquake and flood. Contents are covered on a named peril basis. Please note this only for NON Tenant occupied property.

HO4 – Renter’s Insurance
The “Tenants” form is for renters. It covers personal property against fire or lightning, windstorm or hail (please confirm your policy does not exclude this coverage), vandalism or malicious mischief, theft, damage from vehicles and aircraft, explosion riot or civil commotion, glass breakage, smoke, volcanic eruption, and personal liability. Exceptions include floods, earthquakes.

HO6 – Condominium Policy
The form for condominium owners. The condo association’s master policy will cover the structure, but as of January 1st, 2009 it is now Florida law (Chapter 718) for all condo owners to have an HO6 policy that includes a minimum of $2,000 loss assesment and includes the association as an additional insured. Policies can be written as Tenant occupied on this form.

DP3 – Tenant Occupied Dwelling
The Dwelling form covers against the same perils as an HO3, exept it must be Tenant occupied. If dwelling is in the name of a Corporation (NOT LLC or Trust) liability coverage may not be available.

The process of selecting an insurance policy is complex, that’s precisely why the insurance agents in Aventura at M.A.M.I. Insurance will guide you every step of the way. Don’t delay, now that you’re a homeowner in Aventura or the surrounding areas it’s vital that you take the next step and purchase homeowners insurance. In fact, you will be much more relaxed to contact M.A.M.I. while you are thinking about your new home purchase. This way you can get to know what your expenses will be and to understand the type of policy right for you. The M.A.M.I Insurance office is centrally located in Aventura on the first floor of the UBS building across the street from Publix and The Venture condos.


Do I need to buy condo insurance if my building already has a master association policy?

Yes, since January 1st 2009, it is now Florida Law for all condo owners to purchase a condo insurance policy (HO6). While the law does not require huricane coverage, it is always a good idea to ask for a quote including WIND. The HO6 will cover your contents (IMPORTANT most policies have a limit for art, jewlery, furs, and silverware), dwelling (floors, wall paint, carpets, bathrooms, closets, etc.), loss of use (in case you cannot occupy the apartment), and liability (in case your apartment damages another unit or causes personal injury).

What are my options if I purchased a property under the name of a Corporation?

Most companies will allow LLC and Trusts to be issue the same way as if the property was owned under a personal name (the coverage must be issued under the personal name and have the LLC or Trust named as an “Additional Insured”). If the property was purchased with an INC, CO, CORP, LTD, or is an allien entity (not from the U.S.) then most admitted home owners insurance companies either will not write the policy completely or exclude WIND coverage. If this is the case, WIND coverage is available for purchase through Citizens (the State of Florida’s insurer of last resort) and Home Owners EX wind is available both on an admitted and Surplus Lines basis (Companies such as Lloyd’s of London, Lexington, etc.)

What are the insurance requirements if I am purchasing a home and getting a mortgage?

Every mortgagee requires that they be named on the policy as an “Additional Insured”. Coverage requirements may differ from mortgagee to mortgagee, however, usually they require that the replacement cost of the structure be insured at 100% of the cost to reconstruct, without including depreciation (properties that are insured taking into account depreciation are insured at “Actual Cash Value” ACV). Mortagees will almost always request a Hazard (aka home owners), Wind, and Flood policy (most times hazard and wind can be combined into 1 policy called a multi peril or HO3, HO6, or DP3, depending on the structure and use).

What happens if my policy lapses and my mortgagee force places a policy? What is the best way to avoid this situation from occurring?

Mortgagees will usually only force place a policy (put a policy into effect) if the owner cannot provide proof of insurance. If your policy lapses, is non renewed, or is cancelled, please contact an insurance agent immediately to avoid having the bank put a very expensive policy in place.

The best way to avoid having your coverage lapse is by either having the renewal escrowed into your mortgage (that way the bank is responsible for the payment) or use an agent/broker who has a customer renewal data base who can notify you of an up and coming renewal both via mail and e-mail.

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Tags: Advertorial · M.A.M.I Insurance

2 responses so far ↓

  • 1 Elliot Lisak // May 20, 2010 at 9:27 pm

    IT is not just Hurricane Season knocking on your door. What about Tornado, Flood, Fire, Theft, Burglary, Lightning, Wind or Broken Pipes
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    Home Sitting Services are designed to provide security and peace of mind when you’re away from home. Your property is monitored to deter theft or burglary and directly attended should catastrophe or natural disaster occur. Our services can identify and correct minor problems before they become major ones.

    HARS services ensure you a speedier insurance reimbursement process. Our services can assist you in protecting your precious possessions.
    Call 954.648.2454 or visit our website at for more information.
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  • 2 Phil Sheo // Jul 1, 2010 at 8:05 am

    You are incorrect when you state that “Every mortgagee requires that they be named on the policy as an “Additional Insured”. The Mortgagee does not have an insurable interest with respect to Liability. The Additional Insured endorsement provides coverage for the named party for Dwelling, Other Structures, Personal Liability, and Medical Payments. They should simply be named First or Second Mortgagee, respective to their loan position, which reflects their interest in the Dwelling and Other Structures.