Question 1

What does Florida homeowners insurance cover?

Accepted Answer

Standard Florida homeowners includes dwelling coverage (structure), other structures (fences, detached garages, pools), personal property (contents), personal liability (third-party injury and damage from your premises and activities), medical payments to others, and additional living expenses when displaced after a covered loss. Specific perils covered include fire, lightning, theft, vandalism, falling objects, weight of ice and snow (rare in Florida), and accidental water damage from internal plumbing. Hurricane and windstorm are covered with separate deductibles. Flood is specifically excluded.

Question 2

What's NOT covered?

Accepted Answer

Standard exclusions include flood (need separate flood policy), earthquake, sinkhole (varies by carrier — some include it, others require separate coverage), gradual deterioration and wear-and-tear, intentional damage, war and nuclear events, business activity at the home (need home business policy), and some pet-related claims for high-risk breeds. Florida also has specific exclusions around mold beyond limited sublimits and lead-based paint claims for older homes.

Question 3

Why are Florida homeowners premiums so high?

Accepted Answer

Florida produces among the highest homeowners insurance premiums in the U.S. due to: hurricane and windstorm exposure (the dominant cost driver), flood vulnerability requiring separate coverage, high construction costs (post-2022, supply chain disruption and rebuild backlog), litigation environment producing larger settlements than national averages, and the residual market (Citizens Insurance) socializing losses across the state. South Florida coastal counties pay the highest rates; inland and Northern Florida pay less. Wind mitigation upgrades and shopping every 1–2 years are essential cost-control strategies.

Question 4

What's the named-storm deductible?

Accepted Answer

Florida policies apply a separate, higher deductible for hurricane and named tropical storm damage — typically 2%, 5%, or 10% of dwelling coverage. On a $400K home with a 5% deductible, the first $20K of any named-storm claim is your responsibility. Standard deductibles still apply to non-named-storm wind damage. Higher deductible percentages reduce premium meaningfully but increase claim risk. Wind mitigation features (impact glass, shutters, hardened roof systems) sometimes reduce the deductible percentage.

Question 5

Should I choose actual cash value or replacement cost?

Accepted Answer

Replacement cost is almost always the right answer for the dwelling — it pays to rebuild without depreciation, ensuring you can actually restore the home. Actual cash value (depreciated value) saves premium but produces inadequate claim settlements that don't cover actual rebuild costs. For personal property, the choice is more nuanced: replacement cost typically costs 10%–25% more in premium but provides meaningful protection on furniture, appliances, and electronics. For most Florida homeowners, replacement cost on both dwelling and contents is worth the premium difference.

Question 6

How does the wind mitigation inspection help?

Accepted Answer

Florida's wind mitigation framework (Form OIR-B1-1802) rewards homeowners who upgrade to modern Florida Building Code wind protection. A licensed inspector documents your home's mitigation features, and the carrier applies premium credits — often 20%–45% off the wind portion of premium. Features that earn credits include impact-rated windows and doors, hurricane shutters, hip roof shape, secondary water resistance, FBC-2002+ roof attachment standards, and roof-to-wall connections. The inspection costs $75–$150 and typically pays for itself within 1–2 years of credits.

Question 7

Should I increase my liability coverage?

Accepted Answer

Yes — most standard policies start at $100K liability, which is dramatically inadequate for Florida's litigation environment. Increase to $300K minimum, ideally $500K, then add a personal umbrella ($1M–$5M) for catastrophic protection. The marginal cost of higher home liability limits is small ($50–$150/year for $500K vs. $100K), and the protection is significant. Pool ownership, dog ownership, hosting frequent guests, or having teen drivers all increase liability exposure and warrant higher limits.

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