Table of Contents[Hide][Show]
- Why You Need Homeowners Insurance in Florida
- Key risks Florida homeowners face:
- Understanding the Different Types of Homeowners Insurance Coverage
- How to Choose the Right Homeowners Insurance in Florida
- Tips for Reducing Your Homeowners Insurance Premium
- Common Homeowners Insurance Claims in Florida
- Frequently Asked Homeowners Insurance Questions:
Owning a home is one of the most significant investments you’ll ever make, especially in a state like Florida, where unique risks such as hurricanes, floods, and other natural disasters are more common. Having proper homeowners insurance is critical to safeguarding your home and financial future.
In this article, we will cover everything you need to know about homeowners insurance in Florida, including coverage options, common risks, and tips to ensure you get the best rates.
Why You Need Homeowners Insurance in Florida
Homeowners insurance is essential for protecting your property from financial losses. It can cover damage to your home caused by natural disasters, theft, and even vandalism. While homeowners insurance is not legally required, most mortgage lenders will require you to have it before granting a loan. Even if you don’t have a mortgage, homeowners insurance is vital for peace of mind.
Key risks Florida homeowners face:
- Hurricanes and tropical storms: Florida is prone to hurricanes, which can cause massive property damage through high winds, flooding, and storm surges.
- Flooding: Florida’s flat terrain and proximity to the coast make it especially susceptible to flooding, whether from hurricanes, tropical storms, or heavy rainfall.
- Sinkholes: While less common, sinkholes can also pose a serious threat to homeowners in certain parts of the state.
Understanding the Different Types of Homeowners Insurance Coverage
There are several types of coverage included in a standard homeowners insurance policy. Understanding these can help you tailor a policy that meets your needs and ensures you’re fully protected.
Click on the coverage that you want to learn more about for more info.
Coverage A – Dwelling Coverage
Coverage A protects the structure of your house, including the roof, walls, floors, and attached structures like garages or decks. If a covered peril (such as a hurricane or fire) damages your home, dwelling coverage will help pay for repairs or rebuilding.
This includes both the inside and outside but excludes personal property. Personal property coverage is discussed under Coverage C.
Coverage A is based on the cost to rebuild the home, not the market value of the home.
Watch this video for a short, easy explanation of Dwelling Coverage:
Have questions about Coverage A? Contact Us to learn more or Request a Quote
Coverage B – Other Structures
Coverage B in a homeowners insurance policy covers other structures on your property that are not directly attached to your home. These could include:
- Detached garages
- Sheds
- Fences
- Guest houses
The amount of coverage varies and can be adjusted based on the value of the additional structures on your property.
Watch this short video for a simple explanation of Other Structures coverage:
Have questions about Coverage B? Contact Us to learn more or Request a Quote
Coverage C – Personal Property
Coverage C is your personal property. This would be your furniture, clothes, electronics, dishes, etc. Here is a good way to tell if something is Coverage A or Coverage C. Imagine if you could turn your house upside down and shake it. Whatever would fall out is personal property. Then, whatever stays in place is part of the dwelling. Do you have Replacement Cost or Actual Cash Value (ACV)? That’s another important thing to review on Coverage C.
Some items like jewelry, guns, collectibles, silverware, and more have special limits of liability. If you have a lot of these types of items, it is worth considering special insurance for them like jewelry insurance to make sure you are properly covered.
Related: Sample Policy Form
Watch this short video to learn more about Personal Property coverage:
Have questions about Coverage C? Contact Us to learn more or Request a Quote
Coverage D – Loss of Use
Coverage D covers loss of use if you are unable to stay in your home due to a covered loss. This covers additional expenses that you incur due to the loss. For example, if your house was damaged by a fire and you had to rent a hotel or apartment while you were still paying your mortgage and waiting for repairs, those extra expenses would be covered in Coverage D. You would always want to work with your claims adjuster for specifics related to your claim.
Watch this short video to learn more about Loss of Use / Additional Living Expense coverage:
Have questions about Coverage D? Contact Us to learn more or Request a Quote
Coverage E – Liability
Coverage E covers things that happen to a third party that you are legally liable for. We all know that we live in a litigious society these days. Having sufficient liability coverage is very important. One thing that people forget, liability coverage also includes the cost of defense while settling your claim. This is a large benefit that many people overlook. If you have many assets, it’s always good to consider an Umbrella Policy, too. These are very affordable and provide great protection in the event of a serious claim.
Watch this short video to learn more about Liability coverage:
Have questions about Coverage E? Contact Us to learn more or Request a Quote
Coverage F – Medical Payments
Coverage F is usually a small limit. It is designed to provide immediate medical treatment, regardless of whether or not you are at fault. It is better to get someone immediate treatment for a $500 or $1000 claim, instead of letting it become a much larger liability claim. This provides immediate coverage, and if it is a bigger issue, then the insurer will determine if you are legally liable to determine if it would move into Coverage E.
Have questions about Coverage F? Contact Us to learn more or Request a Quote
Flood Insurance – Usually Separate Policy
It’s important to note that standard homeowners insurance policies do not cover flood damage. Given Florida’s flood risks, homeowners should consider purchasing a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer. It’s often less expensive than you think and can give you peace of mind when a storm’s approaching.
There are typically waiting periods for flood insurance. NFIP has a 30-day waiting period, while most private flood options are between 7-10 days.
Don’t wait until it’s too late! Contact Us to learn more or Request a Quote.
How to Choose the Right Homeowners Insurance in Florida
Selecting the right homeowners insurance policy requires a balance of adequate coverage and affordability. Here’s what you should consider:
1. Assess Your Coverage Needs
Begin by evaluating your home’s replacement cost, not its market value. The replacement cost is the amount required to rebuild your home from the ground up, including labor and materials.
Additionally, consider the value of your personal belongings and whether you need extra coverage for expensive items. Think about liability limits and whether an umbrella policy might be needed for extra protection.
2. Compare Insurance Quotes
It’s always a good idea to compare homeowners insurance quotes from multiple providers to ensure you’re getting the best deal. While the cost of insurance can vary widely depending on factors such as your location, home value, and coverage limits, you should focus on getting the right protection, not just the lowest price.
At Think Safe Insurance, we are an independent agency, so we can do that shopping for you with many different carriers.
3. Understand Policy Exclusions
Every insurance policy will have exclusions—specific situations or types of damage that aren’t covered. For example, flood and earthquake damage are typically not covered under standard homeowners policies. Read the fine print carefully and ask your insurance agent for clarification on any exclusions.
4. Check for Discounts
Many insurance providers offer discounts that can help lower your premiums. Common discounts include:
- Home security systems: Installing burglar alarms, smoke detectors, or home security systems.
- New home discount: If your home was recently built, you might qualify for a discount based on its age and construction.
- Claims-free discount: If you have a clean claims history, you could qualify for lower premiums.
- Wind Mitigation Credits: These can make a huge difference on your Florida home insurance premiums.
Tips for Reducing Your Homeowners Insurance Premium
Florida homeowners are often concerned about the rising cost of insurance due to frequent natural disasters. However, there are several ways to reduce your premiums without sacrificing coverage.
1. Increase Your Deductible
The deductible is the amount you pay out of pocket before your insurance kicks in. Opting for a higher deductible can significantly lower your monthly premium. Just be sure to choose a deductible that you can comfortably afford in the event of a claim.
2. Harden Your Home
In Florida, many insurance companies offer discounts for homeowners who take steps to protect their homes from storms and hurricanes. Upgrading your roof, adding storm shutters, or installing impact-resistant windows can qualify you for savings. All of this shows up on your wind inspection.
If you have questions on whether a certain improvement will help your rate, a good home inspector can tell you how it would impact the wind inspection. That will ultimately be what determines if it will improve the discounts on your policy.
3. Review Your Policy Regularly
As your home’s value changes or you make significant improvements, it’s essential to review your policy regularly to ensure it still meets your needs. You may also want to adjust your coverage levels if you’ve paid off your mortgage or have fewer valuables to protect.
Common Homeowners Insurance Claims in Florida
Understanding the most common claims filed by Florida homeowners can help you prepare for potential risks and avoid future losses. The most frequent claims include:
- Wind and hail damage: Hurricanes, tropical storms, and severe thunderstorms can cause roof damage, downed trees, and broken windows.
- Water damage (non-flood): Leaking pipes, malfunctioning appliances, or roof leaks can result in costly water damage repairs.
- Fire damage: While less common, Florida homeowners should still be vigilant about fire hazards, especially in areas prone to dry conditions.
Frequently Asked Homeowners Insurance Questions:
- Why Do I Have Other Structures Coverage on my Policy?
- What is Personal Property Replacement Cost vs Actual Cash Value (ACV)
- What is an Open Perils vs Named Perils Policy?
- What Happens When I Pay my Insurance with my Mortgage?
- Do I Have Sinkhole Coverage?
- Do I Have Hurricane Coverage?
- What is Ordinance or Law Coverage?
- Can I get a free roof? Should I let this company do a free roof inspection?
- Moving to Florida
- What inspections could I need for Florida home insurance or buying a home?
Final Thoughts: Protect Your Investment with the Right Homeowners Insurance
Whether you’re a new homeowner or looking to switch providers, it’s crucial to have the right homeowners insurance policy in place to protect your investment. Florida’s unique weather patterns and risks make it even more important to ensure you’re adequately covered.
At Think Safe Insurance, we’re dedicated to helping you find a comprehensive, affordable homeowners insurance policy tailored to your needs. Contact us today for a free policy review and to compare quotes from top insurance providers. We’ll guide you through the process and ensure your home is protected against the unexpected.
You can call us at 813-425-1626 or request a quote online.
Do You Have a Policy And Your Are Rates Going Up?
Unfortunately, this has become more and more common here in Florida. We obviously deal with hurricanes, tropical storms, and other strong storms every year. Unfortunately, many roofing contractors (among others) have figured out how to exploit these issues, and that has increased everyone’s rates here in Florida.
Learn More: Free Roof Inspection
Florida homeowners insurance companies review a lot of data to set their rates and for most companies in Florida, these are reviewed and approved by the state as well. In a simplified view, they look at how many claims happen in an area and how expensive those claims are. As the frequency and severity increase, companies adjust their rates to make sure they can cover future claims.
Learn More: Assignment of Benefits
Do You Already Have a Florida Homeowners Policy?
If you are shopping for a different homeowners insurance policy, our experts will be happy to review your current policy. We will review your coverages, discounts, deductibles, and any additional coverages on your policy. We can discuss any changes that you may want to make. Then, we will provide a quote with our carriers to make sure that you are getting the best value for the insurance money.