Homeowners Insurance Tampa Bay

Tampa Bay Home Insurance – Call Today!

Homeowners Insurance Tampa BayAre you searching for business, car or homeowners insurance in Tampa Bay or the surrounding areas? At Pathway Insurance we can put over 61 years of experience to work for you!

Our specialists can find you the right policy for a price you can afford. Call us at 1-800-998-0662 to speak with an agent or send us your request for quotes 24 hours per day using our contact system by clicking on any of the links below:

  • Tampa Bay Homeowners Insurance
  • Condo Insurance Tampa Florida
  • Landlord Insurance Tampa
  • Renters Insurance Tampa Fl
  • Contractors Insurance Tampa
  • Restaurant Insurance Tampa
  • Tow Truck Insurance Tampa Fl

Tampa Bay Home Insurance – What is Inflation Guard?

More and more people are renovating their houses instead of moving. How does this affect your policy? Renovations, and additions can increase the value of your home, so the replacement cost increases as well.

This means that the coverage you have on your policy may not be enough to cover the cost of your newly upgraded home.

Many insurance policies have an option called Inflation Guard. What is Inflation Guard? Well according to one policy specifies this:

“An inflation guard endorsement gradually increases your dwelling’s coverage limit annually to keep your insurance coverage up-to-date with current prices and inflation. It also may keep the policy value in line with increases in local building costs per square foot. If your policy lacks this endorsement, you are responsible for periodically updating your coverage with your insurance agent or company.”

Tampa Bay Homeowners Insurance – Protecting Your Investment.

So what happens if you make additions and improvements to your home and the general market value decreases due to another correction in the real estate market?

Insurance companies do not rely upon market value to estimate what coverage is needed; they rely upon replacement cost, what it would actually cost to rebuild damaged portions of your home.

Most home Tampa Bay home insurance policies will replace your residence up to your policy limit shown in the declaration page.

For Example: Carl and Maria decide that they are going to add a Lanai along with an in ground pool. After about 12 weeks of renovations they quite satisfied and have a beautiful new space to entertain and enjoy their breakfast.

Carl and Maria invested about $47,000 for this project but failed to update their insurance coverage to reflect these additions assuming they had enough coverage.

Unfortunately another real estate correction hits the area, worse than the Florida real estate crash that began in 2006, causing property values to plummet 40%. Increasing their coverage limit is the last thing on Carl and Maria’s mind despite the recommendations from an agent they were seeking new quotes from.

On May 17 a fire destroys a large portion of the house and it is deemed a total loss and needs to be rebuilt.

The claims adjusters’ advise Carl and Maria that they do not have sufficient coverage to rebuild based on the amount covered by their Tampa Bay home insurance policy.

An Inflation Guard policy option could have helped them to incrementally increase the coverage on their home, but in this instance with a major renovation to their home they needed to increase their coverage immediately after the renovations were finished to keep pace with what it actually cost to rebuild.

Reliable Tampa Bay Home Insurance is One Call Away!

When you need reliable home insurance in Tampa Bay let the well versed agents at Pathway Insurance help.

Call us at 1-800-998-0662 during normal business hours of 9 AM to 5 PM or click on Tampa Bay Homeowners Insurance for an online quote today.

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