Jane Dotson
Florida homeowners' insurance is not mandatory but is often required by mortgage lenders. It covers damage or loss by theft, fire, and storm damage, and may also insure the owner for accidental injury or death for which they are legally responsible. Homeowners' insurance policies vary, but generally cover the home's structure and attached buildings, as well as personal belongings. In Florida, homeowners' insurance may also have a separate hurricane deductible, and additional coverage can be purchased for floods.
| Characteristics | Values |
|---|---|
| Coverage | Dwelling, detached structures, personal property, and liability |
| Types of Coverage | Coverage A (Dwelling), Coverage B (Other structures), Coverage C (Personal Property), Coverage D (Loss of Use), Coverage F (Medical Payments) |
| Perils Covered | Fire or smoke, explosions, lightning, hail and windstorms, theft, vandalism, damage from vehicles, damage from aircraft, riots and civil commotion, volcanic eruption |
| Discounts | Discounts for hurricane loss mitigation, premium discounts for hurricane wind mitigation, discounts for quoting in advance, bundling with an existing auto policy, installing a home security system |
| Additional Coverage | Flood insurance, umbrella policy, water back-up coverage |
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What You'll Learn
What is covered by Florida homeowners insurance?
Homeowners' insurance is a specific type of property insurance that covers damage or loss by theft, fire, and storm damage. It also may insure the owner for accidental injury or death for which the owner may be legally responsible. While homeowners' insurance can specifically refer to the insurance of a house, it also encompasses the insurance of other types of structures associated with personal residences, including tenants (renters) and condominium unit owners.
The basic type of homeowners' insurance covers 10 perils: fire or smoke, explosions, lightning, hail and windstorms, theft, vandalism, damage from vehicles, damage from aircraft, riots and civil commotion, and volcanic eruption. The standard homeowners' insurance policy is typically divided into several component parts. Coverage A, or dwelling coverage, pays for damage or destruction to your house and any unattached structures and buildings, such as fences, attached garages, or patio covers. Coverage B refers to other structures such as a garage, deck, or swimming pool. Coverage C covers personal property, including the contents of your house, such as furniture, clothing, and appliances if they are stolen, damaged, or destroyed. Coverage D, or loss of use, pays for additional living expenses if your home is uninhabitable due to a covered loss. Most standard Florida homeowners insurance policies pay 10% to 20% of the amount of your dwelling coverage. Coverage F covers medical payments for persons injured on your property.
Homeowners insurance in Florida does not typically cover flooding or windstorms, and it is important to check your policy for details about if and how your insurance covers hurricane-related damage. In some cases, you can buy extra protection by adding coverage to your policy or purchasing a separate policy. For example, a private flood insurance policy or NFIP may help protect your property and belongings against flood damage. An umbrella policy may also help protect your assets if you exceed the personal liability coverage on your homeowners policy. Additionally, adding water backup coverage as optional coverage may help in the event of sewage backup or sump pump overflow due to heavy storms.
Florida law does not require homeowners to have homeowners insurance. However, mortgage lenders usually require homeowners' insurance as part of the mortgage terms, as they have a financial interest in the property and want to ensure it is protected. Homeowners insurance rates and coverage vary depending on factors such as the location, type of home, and coverage limits. It is important to review the specific terms and coverages of your homeowners insurance policy to understand what is included and what additional coverage may be needed.
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What isn't covered by Florida homeowners insurance?
Homeowners insurance in Florida does not typically cover flooding and earthquakes. This is the case for most standard policies, and additional coverage will need to be purchased if flood insurance is desired. This can be done by buying a private flood insurance policy or NFIP, where available.
Furthermore, windstorms are not always covered under a standard policy, and there may be a separate hurricane deductible, which is often higher than the standard deductible. Homeowners can, however, qualify for credits if their policy meets Florida's Wind Mitigation criteria.
Sewage back-up or sump pump overflows are also not usually covered by homeowners insurance. However, additional coverage can be purchased to protect against this.
The age of the home is another factor that can affect coverage. Older homes may not be eligible for a Homeowners' policy and may instead be covered by a Dwelling Form.
Additionally, the basic type of homeowners' insurance does not cover everything and only covers ten perils: fire or smoke, explosions, lightning, hail and windstorms, theft, vandalism, damage from vehicles, damage from aircraft, riots and civil commotion, and volcanic eruption.
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$17.25 $45
How much does Florida homeowners insurance cost?
The cost of homeowners' insurance in Florida varies depending on a range of factors. The average premium for a policy with $250,000 in dwelling coverage, $125,000 in personal property coverage, and $200,000 in liability coverage is $8,770, which is 262% higher than the national average of $2,423. However, this cost can fluctuate significantly depending on the insurer and the level of coverage. For example, a policy with $100,000 in dwelling coverage may result in an annual premium of $3,618, while a policy with $500,000 in dwelling coverage may cost around $15,983.
The cost of homeowners' insurance in Florida is also influenced by factors such as the age of the home, with newly constructed homes having lower average premiums of around $4,234 compared to $8,770 for older homes. Additionally, the type of construction and roofing materials can impact the insurance cost, with concrete block construction and composition roofing resulting in lower premiums due to their durability and resistance to certain perils.
Maintaining a claim-free record can also help keep insurance costs down, as those with one or two claims in the past five years may see their premiums increase by several hundred dollars. Credit scores also play a role, with homeowners with poor credit-based insurance scores paying significantly more than those with good credit.
Location is another factor that affects insurance costs in Florida, with homes in high-risk areas for hurricanes, tropical storms, tornadoes, and wildfires potentially facing higher premiums. For example, homeowners in Tallahassee and Orlando may experience higher insurance rates due to the impact of recent hurricanes. On the other hand, homes in central Florida, away from the coast, may have lower insurance costs, ranging from $2,500 to $4,500 per year.
It's important to note that Florida law does not require homeowners to have insurance, but mortgage lenders often do as they have a financial interest in protecting the property. Additionally, Florida requires insurance companies to offer discounts for wind mitigation measures, and homeowners can also explore other types of policies, such as HO-1, HO-2, HO-7, and HO-8, which offer varying levels of coverage and may impact the overall cost of insurance.
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How to claim on Florida homeowners insurance
Homeowners' insurance in Florida covers damage or loss by theft, fire, and storm damage. It may also cover the owner for accidental injury or death for which they are legally responsible.
Florida law does not require homeowners to have homeowners' insurance. However, mortgage lenders usually require it as part of the mortgage terms.
- Understand the deadlines: According to Florida Statute § 627.70132, homeowners should submit a claim within 1 year of the loss. Insurance companies should acknowledge the claim within 14 days and have up to 90 days to investigate and make a decision.
- Understand your policy: Review your policy to ensure you know what is covered and what is not. Understand your rights and responsibilities as a policyholder.
- Document the damage: Take photographs of the damage and create a detailed list of damaged items, including descriptions, model and serial numbers, original cost, and replacement cost. Don't throw away any damaged items, as the adjuster will want to see them.
- Contact your insurance agent: Get in touch with your insurance provider and inform them of the damage. They will guide you through the specific steps and requirements for filing a claim.
- Get written bids: If possible, obtain written bids from licensed contractors on the repair work. This can help speed up the claims process.
- Understand endorsements: An endorsement is an addition or adjustment to your coverage. It allows you to add or change coverages, ensuring you have the protection you need.
- Be aware of unique considerations: Florida is susceptible to hurricanes and strong winds. Understand Florida's Hurricane Deductible to avoid unexpected expenses. Additionally, homeowners insurance usually doesn't cover flood damage, so you may need separate flood insurance.
Remember, the claims process can be complex and stressful. It is important to be aware of your rights as a policyholder and seek guidance if needed to navigate the process effectively.
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Florida homeowners insurance endorsements
In the context of insurance, an endorsement is an addition or adjustment to your insurance coverage, terms, or conditions of the policy. Endorsements are also referred to as riders or amendments. They allow you to add or change the coverages on your policy to ensure that you have the coverage you need for your home and personal property.
Florida law does not require homeowners to have homeowners insurance. However, if you have a mortgage, your lender may require you to have homeowners insurance to protect their financial interest in the property. Homeowners insurance policies often start with broad coverage language, but this language is subject to many exclusions. To have these excluded perils covered, homeowners must pay extra for endorsements.
There are several endorsements that insurance companies offer as an option. Depending on the type and cost of the endorsement, your premium may increase or decrease. Here are some examples of endorsements that may be available:
- Scheduled Personal Property Endorsement: If the value of your personal property exceeds the standard coverage under your policy, you may need this endorsement.
- Home-Based Business Endorsement: Business activities and business property are typically excluded from standard homeowner's insurance policies. This endorsement can provide coverage for property damage and certain types of business-related liabilities.
- Watercraft Endorsement: This endorsement provides coverage for boats and other vessels that suffer storm damage, accident-related damage, and liability claims.
- Golf Cart Endorsement: Similar to the watercraft endorsement, varying endorsement options are available for golf carts.
- Sewer Backup Endorsement: Standard homeowner's insurance policies typically do not cover damage caused by sewer backup, which can make your home unsanitary and damage your personal items.
- Windstorm Endorsement: If you live in a state that's vulnerable to hurricanes, your homeowners' insurance might specifically exclude windstorm damage. Depending on your insurer, you may be able to supplement your home insurance with a windstorm endorsement or purchase a separate windstorm hazard insurance policy.
- Flood Endorsement: Floods are not covered under standard homeowners insurance policies. However, some insurers offer flood insurance endorsements, typically through the National Flood Insurance Program (NFIP). These plans have strict coverage limits that are often lower than most standard home insurance plans. Another option is to seek out private flood insurance.
- Earthquake Endorsement: Earthquake coverage is a common exclusion in homeowners policies due to the financial risk associated with widespread property damage. Depending on your location and insurance company, you might be able to add an earthquake endorsement to your policy.
- Matching Endorsement: In the event of loss or damage covered under a homeowners replacement cost policy, Florida Statute 626.97441 mandates that carriers must consider paying for the matching of undamaged areas of the home to provide continuity and uniformity. However, opponents of this endorsement argue that it deprives policyholders of vital benefits and may cause homeowners to fall out of compliance with lender requirements.
- Removal of Coverage C Endorsement: Coverage C refers to personal property or contents coverage. Per Florida law, you can remove this coverage from your policy, but you must include a handwritten, signed, and dated statement from every named insured on the policy. Removing personal property coverage means you will only have coverage for your home and not your contents or personal belongings.
- Preferred Contractor Endorsement: This endorsement encourages you to use a contractor from an approved list provided by the insurance company for repairs to your home. By purchasing this endorsement, you may receive a premium discount or a discount on your All Other Perils deductible.
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Frequently asked questions
No, homeowners insurance is not required by Florida law. However, mortgage lenders usually require it as part of the mortgage terms.
Homeowners insurance in Florida covers damage or loss by theft, fire, and storm damage. It also covers the owner for accidental injury or death for which they may be legally responsible.
Most policies do not cover earthquakes, flooding, or normal aging of the house. Windstorms and hurricanes may not be covered either, but you can buy extra protection.
The average monthly price of a Progressive homeowners insurance policy in Florida was $206.13 in 2024, or $2,473.54 for an annual policy. However, the cost varies based on factors such as location, type of home, and coverage limits.
You can compare rates and coverages from multiple companies in Florida using tools like Progressive's HomeQuote Explorer®. You can also review resources provided by Florida's Insurance Consumer Advocate and the Department of Financial Services' Division of Consumer Services.
