Information on Homeowner's Insurance in Florida
If you have a mortgage on your home, then chances are you are required to have homeowner's insurance. Homeowner's insurance in Florida varies widely in price depending on where you live. Coastal regions that are more prone to damage from hurricanes will cost the most to insure. There are also special coverages you can purchase to provide extra protection
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Flood Insurance
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Most standard homeowner's insurance policies do not cover flood damage, so you must purchase it separately. The only water damage covered by most standard homeowner's policies is water that enters your home as a result of wind damage. Flooding from storm surge, which is common during hurricanes, is not covered and requires separate flood insurance.
Flood insurance is provided by the Federal Emergency Management Agency (FEMA) through its National Flood Insurance Program (NFIP). Areas of higher flood risk are required to carry certain coverage levels. A flood risk analysis can be performed to ensure that your home is classified properly and you don't get too much or too little insurance.
Hurricane Deductibles
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Because Florida is so prone to hurricane damage, most Florida homeowner's insurance policies have a separate hurricane deductible that kicks in if you make a hurricane damage claim. This deductible determines the amount of money the homeowner must pay out-of-pocket before the insurance company pays. The deductible is usually expressed as a percentage of the total hurricane damage. For example, if your home is hit with $100,000 in hurricane damage and your hurricane deductible is 5 percent, then you must pay the first $5,000 of the repairs. Being an informed policy holder can help you be prepared to handle such a situation. You can also negotiate this term of your policy when purchasing homeowner's insurance.
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Extended Replacement Cost Coverage
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After a major disaster like a hurricane, the materials and labor to conduct repairs can become scarce and consequently very expensive. These increased prices can reduce the amount of repair available within your policy's coverage limit. To protect yourself from this type of scenario, most homeowner's insurance policies offer an optional extended replacement cost coverage clause that will extend your limit by a specified percentage to cover the unforeseen extra cost of repairs.
High-Risk Areas
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Some parts of Florida have been deemed "high-risk" areas, especially after being hit by hurricanes in the past. In some cases, insurance companies have canceled policies and refused to issue new ones in these areas. If you are in this type of situation, you can obtain insurance through the Citizens Property Insurance Corporation.
Lightning Damage
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Florida is well known to be the lightning capital of the world. Consequently, lightning damage is one of the most common types of homeowner's insurance claims in Florida. Because it is such a random occurrence, many insured policy holders are unaware of the items covered or even how to detect lightning damage. Electronic equipment is especially susceptible to lightning damage, so properly assess your electronics after lightning storms and immediately file claims if damage is found. Passing time can hurt your chances of filing a successful claim.
Lightning can also cause structural damage to a home or spark a fire. It can also cause property damage from fallen trees and limbs. All of these types of damage are covered by most basic Florida homeowner's insurance policies. However, immediate filing of the claim can be critical to receiving proper repairs and compensation.
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