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Because policies vary, some additional
factors should be considered when determining your coverage
needs. Please check with your agent. Additional factors
include:
Coverage Availability When Storms
Threaten
You cannot obtain immediate coverage when
a tropical storm or hurricane reaches a certain distance
from Florida. Don't wait until the last minute to buy your
policy, especially during hurricane season (June 1 through
Nov. 30), when several storms can form simultaneously.
Insurance companies do not accept new
applications, or requests to increase your coverage, once a
hurricane reaches a certain distance from Florida. Insurance
companies generally refer to this situation as the storm
being in "the box."
Sinkhole Damage
Florida law requires licensed insurance
companies to make coverage available for damage caused by
sinkholes. Surplus lines insurance companies aren't required
to provide sinkhole coverage, but may do so (see Surplus
Lines Companies on page 20). If you suspect that sinkhole
activity caused structural cracking or damage to your home,
contact your insurance agent or company immediately.
For more information regarding sinkhole
damage, you may order our
publication "Sinkholes in Florida" or view it online.
Flood Insurance
Typically, homeowners policies exclude
flood damage (rising water). Depending on your home's
location, however, you may qualify for flood insurance
through the National Flood Insurance Program. You also may
qualify for a discount if you include a special elevation
report with your application. For more information, contact
the National Flood Insurance Program at 1-888-FLOOD29
(1-888-356-6329).
The coverage involves a 30-day waiting
period before the policy becomes effective, unless the
policy is purchased at the same time you buy your home. Some
insurance companies also offer flood insurance. Generally,
you will get separate coverage for your home and personal
property. Your insurance agent or company can assist you
with application forms for flood coverage.
Windstorm Coverage
Most homeowners policies cover damage
caused by windstorms, hurricanes and hail, but insurance
companies may exclude this coverage in some high-risk areas.
The Citizens Property Insurance Corporation provides
homeowners with insurance in high-risk situations (like a
home on the beach) and to consumers who can't find coverage
in the private market.
For more information about Citizens, see
"Insurance of Last Resort" on page 20. You may also contact
the Department of Financial Services Consumer Helpline
toll-free at 1-800-342-2762, visit the DFS Web site at
www.myfloridacfo.com; call Citizens at 1-888-685-1555, or visit
www.citizensfla.com.
Hurricane Deductibles
The Hurricane Insurance Affordability and
Availability Act offers homeowners a broader selection of
deductible amounts available. These deductibles depend on
the value of the insured property and apply only to
hurricane claims (i.e., resulting from a hurricane declared
by the National Weather Service).
Consequently, you may owe extra
out-of-pocket costs for damage that occurs:
 any
time a hurricane watch or warning is issued for any part of
Florida
up
to 72 hours after such a watch or warning ends and
any
time when hurricane conditions exist throughout the state
New legislation passed following the 2004
hurricane season - when many homeowners had damage from
multiple storms and faced multiple deductible payments -
limits the number of times a deductible must be paid to once
per hurricane season.
Home Rental or Dwelling Insurance
If you rent your home to others,
insurance companies offer landlord coverage to suit your
situation. Typically, you will need a commercial dwelling
policy to cover a home you do not live in. If you rent a
room or a portion of your home, ask your agent what coverage
you may need.
Building Materials
The building materials used in the
construction of your home can affect the cost to insure it.
For example, it's more expensive to insure a frame house
than a brick one.
Ordinance or Law Exclusion
If a local building ordinance or law
increases the cost of repairing or replacing your dwelling,
the insurance company will not pay that extra amount, unless
you add ordinance or law coverage to your policy.
This is how it works: Your home was built
in 1982 and the building code called for construction at
least five feet off the ground. In 2001, the building code
was changed to call for the same construction at least 10
feet above ground.
Complying with this code will require a
change in design and building materials; thus, you will pay
more to repair or rebuild your home, if necessary. An
ordinance or law exclusion means the insurance company will
not pay the cost of bringing the repaired home up to current
building requirements.
Your agent must offer you ordinance or
law coverage. If you do not wish to buy this coverage, you
must sign a form stating that you reject it. Some companies
automatically include this coverage.
Mold Exclusion
Some companies have recently begun to
exclude damage caused by mold and fungus from their
policies. Some offer a buy-back provision, and some limit
the amount they will pay.
For more information regarding insurance
against water damage, you may order our publication "In the
Event of Unexpected Water Intrusion" or
view it online.
Home-Warranty Plan
Homeowners insurance can protect your
home from losses due to fire, theft and other perils. A
home-warranty plan, though, offers a service contract that
can pay for unexpected repairs to the home's plumbing,
electrical system, appliances, etc., during the warranty
period, which typically ranges from one to 10 years.
Such plans offer no substitute for
homeowners insurance or a lack of quality construction for a
new home. Carefully research your insurance needs and the
qualifications of your homebuilder. Also read and understand
any home-warranty plan under consideration. Read the
exclusion section of the warranty.
Help
You may contact the Service Office in
your area - listed in the back of this guide - or call the
DFS Consumer Helpline toll-free at 1-800-342-2762 if an
unresolved problem or question remains even after you talk
with your insurance company or agent.
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