Owning a home in Florida comes with some unique insurance considerations.
Hurricanes, wind exposure, flooding, rising construction costs, roof requirements, and changing insurance options can all affect the coverage available for a Florida property. That’s why homeowners shouldn’t simply receive a renewal notice, look at the new premium, and automatically renew without reviewing the policy.
The price matters, but so does understanding what you’re actually paying for and how your coverage may respond when you need it.
Here are seven areas Florida homeowners should review before their next insurance renewal.
1. Review Your Dwelling Coverage
Your dwelling coverage is designed to help repair or rebuild your home following a covered loss, subject to the terms and limits of your policy.
One common mistake is assuming that the amount of insurance on a home should simply equal its market value. The cost to rebuild a property and the price for which that property could sell are two different things.
Construction costs can change over time, and improvements or renovations to your home may also affect its replacement cost.
Before renewing, review the dwelling limit on your policy and make sure you understand how that amount was determined.
2. Understand Your Hurricane Deductible
Florida homeowners may have a separate deductible for hurricane losses in addition to the deductible that applies to other covered losses.
And this is important: a percentage deductible can represent a substantial amount of money. For example, if your dwelling coverage is $500,000 and your applicable hurricane deductible is 2%, that represents $10,000.
Don’t wait until after a hurricane to discover how your deductible works. Before renewal, look at your declarations page and understand both your hurricane deductible and your other applicable deductibles.
3. Don’t Assume Homeowners Insurance Includes Flood Insurance
This is one of the most important distinctions for Florida homeowners.
A standard homeowners insurance policy generally does not cover damage caused by flooding. Flood insurance is typically obtained separately. Don’t assume that flood insurance is only worth considering if your lender requires it or your property is located in a particular flood zone. Flood risk can exist outside areas traditionally considered high risk.
When reviewing your homeowners coverage, it’s worth discussing whether separate flood insurance should be part of your overall protection strategy.
4. Review Your Wind-Mitigation Information
Certain construction features designed to help a home withstand hurricane-force winds may qualify for insurance credits or discounts, depending on the property and insurer. These may include characteristics involving the roof, roof-to-wall connections, opening protection, and other construction features documented through an appropriate wind-mitigation inspection.
If you’ve made improvements to your home, such as replacing the roof or installing qualifying impact-resistant protection, make sure your insurance professional knows about them.
Your existing insurance information may no longer reflect the current condition of your property.
5. Look Beyond the Premium
It’s understandable to focus on price, particularly when insurance costs are a significant part of the household budget. But two insurance policies with different premiums may also provide different coverage, limits, deductibles, endorsements, or exclusions.
When comparing options, don’t look at the premium alone.
Ask questions such as:
- What are my coverage limits?
- What deductibles apply?
- Is wind or hurricane coverage included?
- What exclusions should I understand?
- How is my personal property covered?
- What liability coverage do I have?
- Is additional living expense coverage included?
- Are there important endorsements or limitations?
The goal isn’t simply to find an insurance policy. It’s to understand the protection you’re purchasing.
6. Review Your Personal Property and Liability Coverage
Your home isn’t the only thing being protected. Homeowners policies commonly include coverage for personal property, personal liability, and additional living expenses, subject to the terms, conditions, exclusions, and limits of the particular policy.
Certain valuable items may also have special coverage limitations. If you’ve purchased expensive jewelry, electronics, artwork, collectibles, or other valuable property, discuss whether your existing policy provides the level of protection you expect.
Your liability needs can also change as your financial situation changes.
7. Review Your Policy Before Renewal, Not After a Loss
The best time to discover a coverage issue is before you need to file a claim.
Your home may have changed. Your financial situation may have changed. Insurance products and underwriting requirements may have changed. And the cost of repairing or rebuilding your property may have changed.
An annual insurance review gives you an opportunity to ask questions, understand your current coverage, and determine whether available options may better fit your needs.
Your Insurance Should Evolve With You
Homeowners insurance isn’t something that should necessarily be placed in a drawer and forgotten. A policy that made sense several years ago may deserve another look today.
At EZ Assurance Group, Inc., our goal is to help Florida homeowners understand their insurance options and make informed decisions about protecting their homes, property, and financial interests.
If your homeowners insurance is approaching renewal, or if you simply haven’t reviewed your coverage recently, our team would be happy to speak with you.
Ready for an Insurance Review?
EZ Assurance Group, Inc.
3350 SW 148th Ave, Suite 110 Miramar, FL 33027
Phone: (954) 493-1110
Email: info@ezassurancegroup.com
Website: www.ezassurancegroup.com
Contact EZ Assurance Group, Inc. today to discuss your homeowners insurance options.
Coverage availability, eligibility, terms, conditions, exclusions, deductibles, and premiums vary by insurer and individual risk. This article is provided for general informational purposes and does not modify, replace, or constitute the terms of any insurance policy. Please refer to the applicable policy and carrier documentation for actual coverage.