There are many different types of homeowners insurance policies available. Normally, the type of policy coincides with the type of structure to be insured and how the structure is occupied. The type of policy also correlates to the coverage available as well.

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Owner-Occupied: The main difference between policies which cover an owner-occupied, single family home is the perils covered. Basic or Broad Form policies (HO-1, HO-2) cover the structure for specified perils shown in the policy. Special form policies (HO-3) cover the structure for all perils except those specifically excluded in the policy.

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Condo unit owners need a Condominium Unit-Owners Form (HO-6) which provides some coverage for the structure but primarily covers the personal property and liability of the insured. Condo unit owners policies normally cover named perils listed in the policy. However, a special endorsement can be purchased to broaden the policy to cover all perils except what is excluded in the contract.

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The condo unit owners policy also provides Loss Assessment Coverage. It pays for your share of expenses for a covered loss to common property shared by all unit owners, up to the coverage limit. Policies must include at least $2,000 of loss assessment coverage with a deductible no greater than $250.

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Renters: If you rent or lease your home, you need a renters policy (HO-4) to cover your personal property and liability.

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Modified Coverage Form: Currently, in Florida, there are many insurers offering a Modified Coverage Form, (HO-8). The (HO-8) offers less coverage than the (HO-2). However, due to the company’s underwriting criteria, this may be the only coverage form offered by the insurer.

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Dwelling Form: There are other property policies available for risks that may not qualify for a Homeowners policy. They are called Dwelling Forms. A Dwelling Form may be used instead of a Homeowner’s Form in the case of an older home, a home that is rented to others, or for other underwriting reasons.

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Mobile Home: Many insurers have discontinued the sale of mobile home policies that duplicate Homeowners’ policies. Some insurers issue a dwelling form (discussed below) to cover a mobile home. .

There are many types of property inspections. The most common are listed below. If the insurer requests a 4-point or specialized inspection and it is not provided, it can refuse to provide certain coverage or may refuse to insure the property at all.

Underwriting Inspection (Insurer Pays Cost): An insurer may require a visual inspection prior to writing a policy. This inspection is done to verify information given on the application about the home and property. The insurer may verify the construction of the home and whether there are potential hazards on the property such as unacceptable animals, pools, trampolines, unrepaired steps, steps without handrails, etc. The insurer may use the inspection to determine the presence of certain types of wiring or electrical panel boxes they believe increases the risk of a fire.

The inspection may also verify the maintenance of the home such as whether the property has any unrepaired damage. The insurer considers whether the home is properly maintained, such as, overgrown grass and weeds, trees with dead limbs near the home, non-operating vehicles on the property, etc. The insurer decides what risks to assume or avoid. If the insurer finds any of the risks listed above (this is not an all inclusive list), they may refuse coverage.

Insurers hire their own inspectors or inspection firms to inspect the condition of a property prior to the original issuance or renewal of a policy. This is part of the underwriting process. These inspectors are hired and paid by the insurance company so they decide who to use and what qualifications they must meet. Florida law does not address who an insurance company can hire for their underwriting process. The Department of Financial Services would not have authority to intercede on an inspector’s behalf if they were denied employment/contracts with an insurer.

4-Point Inspection: If you are insuring an older home, the insurer may require an inspection of the following items: The roof (to determine its life expectancy), the plumbing, electrical wiring, or heating and air. The insured/applicant pays for this inspection.

Specialized Inspection: Sometimes, an insurer may request an inspection of only one item, such as the roof. The determination of the life expectancy of a roof is one of the most common inspections requested today. Another common inspection requested in certain areas is sinkholes. The insured/applicant pays for this inspection.

Mitigation Inspection: Policyholders may elect to have an inspection to determine what wind mitigation credits they are entitled to receive on their homeowner’s windstorm premium. These inspectors complete the OIR-B1-1802 inspection form for the insured to submit to their insurance company. Insurers have the right to reinspect your home to verify your entitlement to these credits. The consumer normally pays for this type of inspection. However, if the insurer elects to reinspect a property, the insurer pays for the inspection.

 

Prepare a Home Inventory Checklist! A home inventory – along with photos and proof of ownership - will make it easier to file an accurate, detailed insurance claim in case your home is damaged or destroyed. When you have a loss, it is your responsibility to know what property you have, when it was purchased, how much you paid for it, and how much it will cost to replace it. You should also keep receipts for large purchases, or keep your credit card statements. You may be asked to prove that you ever owned the item in question. It is always a good idea to take pictures or videos of your property as well.

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Better Building Codes Mean Lower Rates! The Building Code Effectiveness Grading Schedule (BCEGS) assesses the building codes in effect in a particular community and how the community enforces its building codes, with special emphasis on mitigation of losses from natural hazards.

Make sure your home is insured properly! If you have a replacement cost policy and fail to maintain the proper amount of insurance, you may be penalized when filing a claim. Although most homeowner policies include an inflation guard endorsement to automatically increase your coverage annually, you should check with your insurance agent once a year to make sure you have adequate coverage.

Read your policy carefully! Insurance policies differ between insurance companies so you must review your own contract. Insurance policies do not cover everything, read the exclusions. Also, there are limitations on certain types of personal property, such as but not limited to antiques, firearms, jewelry, furs and electronics, including computers and their equipment. In most instances, additional coverage may be purchased. Talk to your agent about additional coverage.

Keep a copy of your important documents in another location! In the event your home is totally destroyed, you would have copies of all your important documents

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Flood Insurance:

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Flood risk across the continental U.S. is concentrated along coastlines, and no state has more vulnerable beachfront miles than Florida. The Sunshine State boasts over 1300 miles of coastline, making it the perfect place for sun and sand – and flood. With a population of nearly 21 million people, that’s a lot of homes at risk; and coastline residences aren’t the only ones in the path of floodwaters. The average elevation above sea level is only 6 feet, meaning that every home in Florida is at risk for flood.  

Do Homeowners Insurance Policies Include Flood Coverage? 

Many insurance agents across the state of Florida agree that the biggest misconception Floridians have about their homeowners insurance policy is that flood coverage is included. It’s not.  

Who Needs Flood Insurance? 

Flood zone maps calculate risk of flood, and most mortgage issuers use these maps to decide whether or not to mandate flood insurance for homebuyers. However, 20% or more of flood claims every year come from “low risk” flood zones. Hurricane Irma affected homes in areas only expected to flood once in every 100 years, causing massive damage and costs difficult for homeowners to absorb.  

How Can Flood Insurance Be Obtained? 

Flood insurance is available through the National Flood Insurance Program (NFIP), which is administered by the Flood Emergency Management Agency (FEMA). NFIP was created to provide affordable flood insurance for residents living in areas where flooding is a regular occurrence. Roy Wright, who oversees the program, recommends that all Floridians purchase flood insurance regardless of their flood zone designation.  

What Does Flood Insurance Cover? 

The standard NFIP policy provides replacement cost coverage capped at $250,000 for damage to the structure of the home and actual cash value coverage capped at $100,000 for loss of personal possessions. Flood insurance does not cover water related damage from other causes (such as leakage / seepage claims), or damage caused by wind driven rain. 

Does Flood Coverage Make Sense? 

Florida has no “flood free” zones. Every year carries the possibility of another flood-causing weather event. Having a flood insurance policy (which is on average only a $700 annual commitment) is the only option that makes good financial sense for Florida homeowners.  

Consult with us about flood insurance before the next storm season hits. Flood insurance could save you from devastating losses and prevent you from having to carry the cost of restoring your home after a hurricane. If you live in Florida, it’s the best choice for you, your family, and your home.

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Tittle Insurance:

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Title insurance insures owners of real property, or lenders using real property as collateral, against loss arising out of defective or invalid titles and the existence of other liens or other legal claims against titles to real property. Title insurance can provide similar coverage regarding personal property.

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