Most people never read their homeowners policy until there is a loss. This guide helps you quickly understand the sections that matter most in Florida.
Key Takeaways
1
Understand your coverage limits for dwelling (A), other structures (B), contents (C), and loss of use (D)2
Know the difference between replacement cost and actual cash value coverage3
Be aware that wind damage is typically covered but flood damage requires separate coverage4
Review exclusions for long-term leaks, wear and tear, and mold in your policy5
Ask for written explanations when coverage decisions are unclear1. Know what is covered – and where to find it
Your policy is usually divided into sections for the dwelling, other structures, personal property, and loss of use.
- Look for the 'Declarations Page' – this gives a snapshot of limits and deductibles.
- Find Coverage A (dwelling), Coverage B (other structures), Coverage C (contents), and Coverage D (loss of use).
- Make note of any separate hurricane or windstorm deductible.
2. Replacement cost vs. actual cash value
These two phrases have a big impact on how much you are paid.
- Replacement cost coverage is designed to pay what it costs to replace the item today.
- Actual cash value subtracts depreciation for age and wear, often resulting in lower payments.
- Some policies pay actual cash value first and release replacement cost later, after work is completed.
3. Florida-specific issues: wind vs. flood
In Florida, wind-driven rain, storm surge, and flooding are treated differently.
- Standard homeowners policies generally cover wind damage, but not flood from rising water.
- Flood coverage usually requires a separate flood policy.
- Mixed damage (wind and flood together) can create disputes over who pays what.
4. Review exclusions and conditions
Exclusions are the insurance company's way of saying, 'we will not cover this specific situation.'
- Look for exclusions around long-term leaks, wear and tear, mold, and neglect.
- Read the 'Duties After Loss' section – this lists what you must do to keep coverage in place.
- If anything is unclear, ask a licensed public adjuster or insurance professional to walk through it with you.
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