Florida Hurricane Insurance Laws
When a hurricane hits, the consequences can be devastating. Hurricanes are the most destructive storms on Earth and can cause billions of dollars of damage. Insuring against windstorm damage in a hurricane-prone state like Florida can be problematic. However, there are laws in place to protect the homeowner and allow fair access to insurance.
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Hurricane Insurance Coverage
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By law, property insurance policies that cover homes in Florida must include coverage for windstorm damage caused by a hurricane. When you apply for homeowner's insurance, the company must provide you with a price for windstorm coverage. Windstorm, or hurricane, coverage covers losses that occur as a result of a hurricane and includes damage to the interior and exterior of a building. By law, hurricane insurance must also include damage caused by dust, snow, sleet or rain.
Discounts
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Florida law mandates that insurance companies must give discounts to homeowners who install wind-resistant features on their homes. A second law requires insurance companies to notify their policyholders of the available discounts so that they can take advantage of the premium reductions. One example of a feature that would reduce your hurricane insurance premium is the installation of windstorm shutters. Discounts can add up to a 42 percent reduction in the cost of your homeowner's insurance.
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Deductibles
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If you have property insurance in Florida, your insurer is allowed by law to include a separate deductible for the hurricane portion of your policy. The deductible for the windstorm portion is set by law. For homes up to $100,000, the mandated maximum deductible allowed is 2 percent of the home's value. For homes worth $100,000 to $500,000, the deductible can be set as high as 5 percent, and for homes valued at more than $500,000, there is no limit to the amount of the deductible.
Citizens Property Insurance
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Citizens Property Insurance Corporation was created by the state of Florida for the purpose of insuring homes for people who can't get insurance from private companies due to high risk factors. Citizens Property Insurance is Florida's largest property insurance company and covers 1.2 million homes, as of January 2011. In addition to Citizens, the state of Florida also created the Florida Hurricane Catastrophe Fund to give insurance companies a source of funding in the event of a catastrophe.
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References
- Photo Credit hurricane katrina image by jcpjr from Fotolia.com
