Congratulations on your new Lennar home. As a Lennar homeowner, you have a head start most new buyers don’t. Because your home’s construction details are already on file, Lennar Insurance Agency has prepared a quote for your new home — no forms, no waiting on hold. But before you decide on any policy, it’s worth understanding what you’re actually comparing.
Here are five questions worth asking:
1. Would my policy help cover the cost to rebuild my home?
Rebuilding costs may be different from your home’s purchase price or market value — and don’t include the value of your land, since land itself doesn’t need to be rebuilt. Coverage should reflect the current cost to rebuild, not what you paid for the home or what it’s worth on the market.
2. Are my belongings covered at today’s prices, or at depreciated value?
Standard policies can settle personal property claims two different ways: at replacement cost (what it costs to buy new today) or actual cash value (original cost minus depreciation). A replacement cost endorsement can close that gap.
3. What could a cheaper quote be leaving out?
A big part of the price difference between quotes comes down to which of these coverages are included — and at what level:
- Extended Replacement Cost — pays a set percentage above your dwelling limit if rebuilding costs run higher than expected due to rising material or labor costs.
- Animal Liability — covers injury or damage caused by a pet, which some policies limit or exclude depending on the animal.
- Water Back-Up Coverage — covers damage from a backed-up sewer, drain, or sump pump, which a standard policy typically does not include.
- Ordinance or Law Coverage — pays the added cost to rebuild to current building codes after a covered loss. Requirements vary by state. In Florida, for example, insurance companies must offer this coverage at a default of 25% of your dwelling limit, which can be adjusted with your agent’s guidance.
A lower quote may mean one or more of these are included at a lower level — or left out entirely.
4. What happens if I can’t live in my home after a covered loss?
If a covered event makes your home temporarily uninhabitable, additional living expense coverage can help with temporary housing and increased daily costs while repairs are completed.
5. How does my deductible work, and does it change by peril?
Your deductible is the amount you pay before your insurance company covers the rest of a claim. In some areas, the deductible for windstorm or hurricane damage can be higher than the deductible for other covered losses, a detail that’s easy to miss until it matters.
The Bottom Line
Choosing homeowners insurance is about more than comparing premiums. It’s about understanding the protection behind the policy. As a Lennar homeowner, your quote is already prepared, and licensed Lennar insurance agents are ready to walk through these answers with you.
Access your prepared quote or contact a Lennar insurance agent today.