Florida is different. Few other states enjoy the climate, culture and, yes, the theme parks that Floridians do. And that's not even scratching the surface of the ways the Sunshine State differs from the rest of the country. Then there's homeowners insurance. That's different, too.
Whether you're a longtime resident or a newbie, buying homeowners insurance in Florida can present challenges because of the severe weather threats the state can face.
How so? In other states, consumers can simply seek quotes from providers, compare coverage and prices, and make a selection. In Florida, it's a bit more complicated than that.
Home insurance in most of the U.S.
In much of the country, standard home insurance policies typically cover damage caused by fire, smoke, hail, explosions, and wind, among other perils.
Policyholders receive protection for the physical structure of the home as well as other structures on the property such as sheds and detached garages; personal property or possessions; and additional living expenses in the event the home is uninhabitable following a covered peril. They also enjoy liability protection if a person is injured on their property or a member of the household causes property damage.
How Florida homeowners insurance is different
Because of the higher threat of wind damage in Florida, it generally is excluded from standard homeowners policies in many parts of Florida. That means homeowners in those areas of the state either must pay higher premiums for coverage or, more commonly, purchase separate windstorm coverage.
It matters, because most mortgage providers will require you to carry and maintain windstorm coverage if you have a mortgage.
Because windstorm coverage can be difficult to find in Florida, the state legislature has a couple of resources to help consumers:
· The Florida Market Assistance Plan helps homeowners find private property insurance carriers willing to write insurance in a particular area of the state.
· The Citizens Property Insurance Corp. provides protection to homeowners who cannot find policies in the private insurance market.
Even so, policies can be pricey. However, homeowners who add wind mitigation features can secure substantial discounts from providers.
What are wind mitigation features? Following are some things you can add to lessen the blow on your home:
· A hip roof
· Secondary water resistance
· Concrete block construction
· Single or double roof straps
· Impact resistance glass
· Fortified doors and garage doors
· Roof-to-wall connection
· Storm shutters on windows
· Gable end bracing for roofs
Homes built after 2002 have many of these features built in, but you will need a wind mitigation inspection to document them. The inspections typically cost about $150. Once you have the certificate from that inspection, you could receive discounts of up to 45% on your windstorm premiums.
Hurricane deductibles
Many Florida homeowners insurance policies also feature hurricane deductibles, which have become common for construction along the East and Gulf coasts. For example, standard homeowners policies in areas that aren't usually in the path of hurricanes usually have specific dollar deductibles - $500 or $1,000. That means the homeowner is responsible for that amount when filing a claim; the insurance provider will pay the rest, up to the coverage limit.
But with a hurricane deductible, the homeowner is responsible for a percentage of the damage – typically 1% to 5% but sometimes higher. For a home insured for $200,000 with a 2% hurricane deductible, the policyholder would be responsible for the first $4,000 worth of damage. Learn more here about Florida homeowners insurance, including information about premiums, discounts, and flood policies.
Just because homeowners insurance in Florida is different doesn't mean a first-time homeowner can't navigate it successfully. But be sure to be diligent when purchasing protection. You don't want to come up short after the next big storm.
Carrie Van Brunt-Wiley is the Editor of HomeownersInsurance.com, an online insurance resource for homeowners and drivers across the country. Offering comparative automobile and homeowners insurance quotes, consumers rely on HomeownersInsurance.com for the most competitive rates from the top-rated insurance carriers in the country. The HomeownersInsurance.com blog, Square One, provides tips and advice on a range of financial topics to help homeowners and homebuyers make educated decisions about their insurance purchases.
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