Homeowners insurance is so important when buying a home in Miami and South Florida that you can’t overlook it.

This location is increasingly a favorite option for investors. This place has been consolidated in the last ten years, as an ideal place to buy real estate. Above all, by Latin American entrepreneurs; whether for permanent, rental or vacation use.

Factors such as affordable prices, make the place more attractive. But in addition, there are variables such as the appreciation of real estate, return on investment, low property and income taxes, which encourage people to buy a house in Miami. If your goal is to access the offer of houses for sale in Miami, it is important to know what type of insurance exists in the market to protect your investment. Next, we tell you everything you need to know about home insurance, to make a decision.

Home insurance if you plan to buy a house in Miami

Home insurance is a tool to protect your property from natural disasters, theft, among others.

According to the Florida Office of Insurance Regulation, there are different types of coverage and policies for those who want to buy a home in Miami. For example:

  • A: Structure (the house itself).
  • B: Other structures (sheds and fences).
  • C: Personal property (content of structures).
  • D: Loss of use (additional living expenses).
  • L: Personal responsibility.
  • M: Medical payments to third parties.

What type of policies exist to buy a house in Miami?

Below, you will find the different types of insurance policies. Depending on the interest in buying a house in Miami of each owner to guarantee patrimonial protection:

Home Insurance Policies

  • HO-1 Basic form. It covers fire, explosions, lightning, windstorms, theft, vehicle damage, aircraft damage, riots, volcanic eruption.

This policy is one of the most common for Miami homes for sale.

  • HO-2 Broad form. It covers the structure of the house, and also personal belongings. It has liability coverage.
  • HO-3 Special shape. Open risk policy; That is, any type of danger, named or not, is covered.
  • HO-5 Completed form. It is an open policy and offers coverage for personal belongings and the structure of the house.
  • HO-8 Form for old houses. They are used for homes 40 years or older.

Renters Insurance Policies

There are also policies to rent houses in Miami. These renters insurance policies cover the following:

  • HO-4 Protect housing items and permanent fixtures installed by the tenant.

This type of policy is frequently used by properties rented on Airbnb in Miami, to ensure the safety of the rented homes.

Other types of policies

  • HO-6 Condo Form. It is known as wall-in coverage, because it covers the inside of a structure.

When buying a house in Miami, (within a condominium), the condominium association will cover the exterior structure. Also, the common areas.

  • HO-7- Mobile Home Form. They cover dwellings such as motor homes, trailers, and sectional homes.

Housing investment in Miami continues to be profitable for investors. According to a recent report on trends in the real estate market (PWC, 2020), Miami continues to stand out for attracting capital. This, through entrepreneurs looking to buy apartments in Miami. The different options offered by the real estate market are huge, but so are the different coverage options and policies. With good home insurance, you can ensure greater protection for your investment and your family’s wealth. Dare to buy a house in Miami and enjoy the benefits that the city can offer.