Homeowners in Florida have the required insurance according to their region being prone to natural disasters but only a few really understand the coverage offered under each the policies. The Insurance Information Institute says it is only after damage caused by natural disasters that exclusions are caught in the policy. Florida home insurance policies should have coverage for natural calamities as the primary focus.
It is essential to know what your insurance policy covers to be protected properly. Do not miss out on some of the important coverage that your policy should include just to save some money; you will come to regret doing so later. Florida insurance law states that specific points need to be covered in all insurance policies.
The three important requirements that have to be present in your Florida home insurance policy are:
1) Importance of Flood Insurance
A standard Florida home insurance police does not cover flood damage even though most of the natural disasters occur because of floods. Coverage is only available through the separate federal government policy. It is also important to know that flood coverage has a waiting period of 30 days before the coverage begins. Flood insurance for residential and commercial homeowners are separate; inquire about the various policies being offered before purchasing.
2) Purchasing Law and Ordinance coverage
It is important that the policy has a law and ordinance coverage because Florida has many homes which were built decades ago. Upon damage, these homes will now have to be built to comply with the current building code. Most insurance policies do not pay all the costs associated with building the house to make it according to the latest building laws and codes, therefore it is essential to purchase law and ordinance coverage with your insurance policy.
3) Separate deductibles for hurricane losses
The options for Hurricane deductibles can go as high as 10%. Higher deductible would receive a premium credit but also increase the out-of pocket costs that need to be paid. It is a bad idea to opt for a deductible you cannot afford, if you feel the deductible is too high, change it right away.