Florida Residents Seek Homeowner’s Insurance for the Hurricane Season

From the years 1980 to 2011, Florida ranked the highest in US insured catastrophe losses that were covered by home insurance. It was estimated that some 15% of all claims during those years came directly from homeowners. This is due in part to the hurricanes and thunderstorms that frequent the Sunshine State, and homeowner’s insurance is an absolute necessity here.

Some Facts about Florida Insurance Claims

Seven of the 10 most financially catastrophic hurricanes in US history have impacted Florida. In fact, six of these occurred during the years 2004 and 2005. Hurricane Andrew, the costliest hurricane in US history—even topping Hurricane Katrina—caused $22.9 billion in damage in Florida and Louisiana combined. As of 2012, there was $2.8 trillion worth of property protected by homeowner’s insurance in Florida, and an estimated 15% of Florida homeowners either have no coverage or inadequate coverage. Hurricane season is unpredictable, and homeowner’s insurance is not something to be taken lightly. Floridians should be sure to review their policies annually and make changes when necessary.

Understanding Homeowner’s Insurance Coverage

There are a lot of misconceptions surrounding what Florida homeowner’s insurance will and will not cover. In all states, it is intended to cover the structure of the home, certain personal property and some forms of liability. Many policies will even help pay for alternate living arrangements if a home is uninhabitable due to a storm. It is very important to consider that these policies typically do not cover flood damage; this must be purchased separately. While the majority of Florida homeowner’s insurance policies cover hurricane damage—classified as windstorm damage—some damages may be rejected in certain situations and homeowners will still be required to pay a 2% to 10% deductible on damage that is covered. 

Supplemental Insurance Policies

Since typical Florida homeowner’s insurance does not cover floods and still leaves behind a rather large deductible, it may be worth considering the purchase of supplemental insurance. There are some policies that are designed solely to help pick up the out-of-pocket deductible expenses and provide a few other amenities that standard policies do not. Still others will help to cover deductible costs as well as damages caused by floods. Sometimes consumers can choose one company to cover the structure of their homes and another to cover their personal property. Though this may be a bit more expensive annually, it provides better and more valuable coverage in some cases.

Insurance Premium Costs

Homeowner’s insurance premiums can fluctuate wildly based upon several factors. First of all, this insurance is naturally more expensive in Florida since the entire state is susceptible to hurricane damage. The features and characteristics of a home, the home’s overall value, the alarm systems and other protective devices that are installed, the purchaser’s claims history, and even the specific location of the home—meaning the neighborhood and proximity to fire and police stations—can affect the amount a homeowner will pay to keep his or her home protected.

When it comes to living in Florida, hurricanes are simply a part of life. As the aftermath of hurricanes Katrina and Andrew have pointed out, these powerful storms pack enough punch to decimate entire cities. Florida residents should take the time to review their homeowner’s insurance policies, and they should ask for free quotes if they do not yet have insurance. There are policies for every home and every budget available.