Six things to know about your Florida homeowner’s policy

How well do you know your current Florida homeowners insurance policy? Here are six things every Florida homeowner should know about their Florida homeowners insurance policy. Homeowners insurance in Florida is a valuable investment that most property owners should make. Yet, it's not just about purchasing a Florida homeowners insurance policy. You also need to know what's in the Florida homeowners insurance policy, how it works, and what the homeowners insurance policy can provide to you. It's also important to understand some of the finer details in these Florida homeowners insurance policies that may limit your ability to file a claim later. Here are six questions every Florida homeowner should know about what their insurance company is providing in their homeowners insurance policy:

#1: Does Your Florida Homeowners Insurance Include Flood Coverage?

Many people don't realize that they have homeowners insurance limits when it comes to flood insurance. This means in your standard homeowners insurance policy flood damage will not be covered. Typically, flood coverage is an add-on. That means you'll need to request flood protection from your insurance company and agree to the sometimes additional charge for flood protection to be included in your homeowners insurance policy.

It's always a good idea to verify flood insurance coverage and your need for flood coverage. If you live in an area of Florida where flooding is possible and where flood damage may be expensive to repair/replace (and in many areas, floods are possible), it may be wise to invest in flood coverage for your homeowners insurance in Florida.

#2: What Are the Limitations on Your Claims?

Many home insurance policies have a specific dollar limit on specific items. For example, you may be capped at $1,000 worth of jewelry. That means if you own valuables that are over and above this limit and need to file a claim for it, your insurance company may only give you $1,000.

If you have highly valuable belongings, including electronics, collector's items, or jewelry, it's best to alert your home insurance agent of this when purchasing your insurance policy. Then, consider an add-on or supplemental insurance policy to cover those items. That gives you ample protection for some of your biggest assets.

#3: Are You Getting Actual Cash Value for Your Belongings?

If an event occurs and you lose your assets covered under your homeowners insurance policy, you may expect to receive money from your insurance company. However, how much you receive depends on multiple factors, including the type of home insurance coverage you have. If you have actual cash value policies, that means you'll receive the current value of those items. That takes into account the cost to replace the item or original cost but deducts the depreciation from it.

Let's say you have a TV that's worth $800. You bought it several years ago. The homeowners insurance policy may only provide you with $500 because the TV is older. It is wise to review your home insurance policy and make sure that your home insurance is covering everything you want it to cover.

#4: Do You Have Enough Insurance to Cover All of Your Belongings?

Sometimes, Florida's homeowners insurance policies may not have enough coverage, especially for the contents of the home. If your home is destroyed in a fire, for example, you'll need money to rebuild it, live somewhere else while that happens, and money to replace all of your losses.

However, many homeowners insurance policies have a cap on how much they provide overall. This is typically broken down into various types of home insurance coverage.

For example, coverage A typically includes the structure itself. You want to be sure your homeowners insurance policy has enough money to cover the rebuilding of the property. That's typically more than just the market price for your home since materials and labor can add up.

Coverage B may include the contents of your home. Do you have a list of what you own and some way to track the value of it? It may help to record a video that allows you to create a list or home inventory of your belongings. That may help in the event of a large-scale disaster.

#5: Does Your Homeowners Insurance Offer Adequate Liability Protection?

Many people don't realize their homeowners insurance policy has liability coverage. That means you may have financial support if you have an accident at your home involving someone who does not live there.

For example, If your dog bites the neighbor, you may have liability coverage to help with their medical bills and other losses. If you have an uninsured contractor do work on your home, and their employee falls and gets hurt, your homeowners insurance policy may help cover their medical needs. You may want to verify how much liability insurance you have to ensure you have the best homeowners insurance for your needs. It is always a good idea to review your liability coverage in case your homeowners insurance policy does not cover everything you would like it to.

#6: How Much Coverage Do You Have for Loss of Use?

In the event of a significant fire or other loss, you may not be able to live in your home. Take a look at your policy. Does it offer enough home insurance coverage in the number of months it will cover your need to live somewhere else? Consider that an average house fire may take a year or more to rebuild.

The more you know about your homeowners insurance, the better. It's a good idea to have a conversation with a homeowners insurance agent to ensure you have the best homeowners insurance coverage. That may help you have peace of mind as you work to protect your biggest investment.

How Worth Insurance can help

We hope this review helps you identify the foundational lines of coverage for the average cost of homeowners insurance in Florida. Everyone who lives in Florida does not need the same homeowners insurance coverage.

If you are considering updating your homeowners insurance policy and are unsure of what exactly you should add to it, Worth Insurance is here to help. Our team of experienced agents will help you get the correct homeowners insurance that you and your family need. We are the go-to insurance company.

If you'd like a complimentary review of your current coverages or would like to discuss shopping around for home insurance in Florida, we're here to help. Reach out to us today for a free quote.

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