A Guide To Homeowner Insurance In Florida

Florida law does not require homeowners to have homeowner insurance. However, in a state where there is an average of one to two hurricanes every year and countless storms – proper coverage may be something you find yourself very grateful to have. And if you have a mortgage, your lender likely WILL require you to purchase home insurance. In addition to a homeowner’s policy, you may want to consider additional related insurance. Let us touch on some basic components of home insurance and some possible enhancements you may also wish to consider:

Here are the coverages offered with a standard homeowner policy:

• Structural coverage – also shown as dwelling coverage, or coverage “A”.
• Other structures such as free-standing sheds or garages – aka coverage “B”
• Personal property – think removable items like furniture – aka coverage “C”
• Additional living expenses (ALE) – covers accommodations, meals, and other such costs during a period when the home is uninhabitable due to a covered loss – aka coverage “D”
• Personal Liability – covers lawsuits or third-party claims – aka coverage “E”
• Medical Payments to Others – aka coverage “F”

What is not covered in your basic homeowner’s insurance policy?

Most Florida homeowners will want to purchase additional insurance beyond that of an un-endorsed home insurance policy.  Florida-specific coverages, such as protection for hurricane-screen enclosures and carport coverage for hurricane damage, may be of particular interest. Water backup and sump overflow coverage are also worth considering. Other common included coverages include: Replacement cost loss settlement for personal property – this coverage settles your personal property losses at like kind and quality without factoring in depreciation. Without replacement cost loss settlement for personal property, your removable items are only covered at depreciated value. Ordinance or law coverage is a coverage that allows you to keep up with building code changes after a loss or repair an undamaged portion of your own if building code requires it after a loss to a separate section of the home, for example.

One of the most crucial policies for Floridians is flood coverage. Since damage from flooding is often excluded from homeowner policies, it is essential to consider flood insurance for proper protection against possible damage to your home. Whether flooding occurs during a hurricane or not, if the damage results from a flood event, flood insurance is the only way to be properly protected.

Will building codes affect my homeowner policy rate?

After Hurricane Andrew hit south Florida in 1992, municipalities around the state created policies to ensure higher standards for constructing homes and buildings. These policies and standards make up part of Florida building codes. These building codes continue to change but have gotten stricter over the years regarding wind protective components of the home.

Most homes built before 1992 will not align with these newer codes thus contributing to their premiums being higher, though this is not the only factor that affects premiums for older homes. You will often find special discounts for new construction, along with some special coverage considerations for older homes. A major building code change relevant to Southwest Florida occurred in 2002. Updates to homes and newer roofs can help offset insurance premiums on older properties.

Homeowner insurance for a condo?

When you own a condominium, the structure will usually be insured by the condominium association, and you will pay a portion of that cost through your association fees. You may then only need a policy that insures the interior portion— also known as “improvements and betterments”—of your unit and the contents of your condo.

How much does homeowner insurance cost in Florida?

Given Florida’s unique weather patterns, it is common for homeowner policy premiums to be double that of the national average. The best way to get more information on home insurance is to ask a licensed agent in our office.  We can assist you with assessing your insurance needs and provide you with some proposals from several well-rated insurance companies.

Get A Quote for Your Home Insurance Today

Our licensed staff is ready to help you get multiple home insurance quotes.  Because we’re an independent insurance agent, we can review options from multiple insurance companies to help you find the right coverage at the right price.

The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.