Don't get blown away by claim-time surprises.
Florida has seen three major storms in the past 3 years. Many homeowners were affected by more than one of these storms. Unfortunately, some homeowners were surprised to learn their home insurance policies did not react as they expected them to.
Here are a few tips before the upcoming season:
1. Home insurance policies normally do not include flood insurance. However, some Florida based carriers are offering flood coverage as an endorsement. Normally, you'd have to be in an "X" flood zone to qualify for this endorsement. Call your agent to check if it's available on your home policy.
If your home carrier doesn't offer flood coverage, consider purchasing a FEMA policy or a policy from a private flood insurance carrier. Private carriers will sometimes offer flexible deductible and contents coverage.
2. Know your hurricane deductible. We have separate hurricane deductibles on Florida insurance policies. Many times, these deductibles are a percentage of the dwelling amount on your policy. For example, a $350k home with a 2% hurricane deductible is $7,000. In this scenario you would be responsible for the first $7,000 of damage done to your home.
Some carriers will offer a fixed hurricane deductible. However, this will raise your premium. It's worth a conversation with your agent to see if your carrier offers a fixed deductible and how it will affect your premium.
3. Do you have a screened enclosure? Many carriers exclude hurricane damage to screened enclosures, unless you purchase this coverage. Damage to screened enclosures can easily get into the $10's of thousands, so be sure you know if you're covered.
4. Most importantly... read your policy when you purchase it and pay attention to notices you receive from your carrier every year. Carriers can change coverage at renewal time, so make sure you are not losing coverage which is important to you. Deductibles can also change.
When in doubt, call your home insurance agent.
Paul Lalonde, President
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