Having the correct type and amount of insurance, as well as knowing and understanding how Florida home insurance policies work, is essential in making a wise purchasing decision.

The stark necessity of home insurance in Florida has come to light recently with the occurrence of storms, hurricanes and flooding. Many Florida residents have discovered too late just how important having sufficient property coverage really is to protect your belongings. Some Floridians have experienced huge homeowner's insurance rate increases; others have had insufficient coverage when they needed it most or have been dropped completely by their insurance companies due to these natural disasters.

Your Options

The three most-frequently-offered Florida homeowner's insurance packages include:

* Broad Form (HO-2)-Covers perils such as windstorm or hail, smoke, vandalism, fire or lightening, explosion, falling objects, volcanic eruptions and many more.

* Special Form (HO-3)-The most popular type. Covers your home for everything not specifically excluded, in addition to such perils as above.

* Modified Coverage Form (HO-8)-Insures your property against only fire or lightening, explosion, riot or civil commotion, vehicles, aircraft, theft, smoke, windstorm or hail, vandalism or malicious mischief, and volcanic eruption.