Back to Basics: How to Read your Florida Homeowners Policy.
Most people take a good book with them to the beach, but don’t neglect taking a look at reading your homeowners insurance policy at least once a year! It’s best to discuss your personal policy with a licensed Agent, but you can always review what your homeowners policy is (or isn’t!) covering. Life gets busy, so it will be beneficial to quickly look at what is written on these contractual agreements. We are going to quickly define and explain what your homeowners policy coverage has built in. Let’s do a quick run through, shall we?
Coverage A:
This will cover the home’s structure. The coverage amount is usually based on the amount it will cost to rebuild your home (based on current construction estimates and costs from other contractors). This coverage’s initial amount should not be confused with the real estate value of your home or the land value. Coverage A applies to most perils, except for those that are specifically excluded. Examples of excluded losses are earth movement (earthquake) and flood. For Florida, Flooding is a big deal. Examples of covered losses include fire, theft, personal liability and other damage to the property.
Coverage B:
While coverage A is for the primary structure, coverage B protects what is called “other structures” on the insured property. These other structures include carports, sheds, detached garages, swimming pool equipment, gazebos & more.
Coverage C:
This part of a homeowners policy covers your personal property (this includes furniture, clothing and other belongings in your home). The average American tends to undervalue their possessions so think if you were to flip your house upside down- everything that falls including furniture, electronics, and every drawer and closet has personal property in it! Even if there is damage or a loss that may occur off-premises, coverage C will come in handy. There may be a limit to the off-premises coverage offered under your policy so please make sure you know what coverage limits exist.
Coverage D:
This can be an interesting part of your policy. Coverage D covers additional living expenses that you may encounter while your home is inhabitable due to a loss. This can include food, lodging and clothing if your home is uninhabitable due to a covered peril, such as a fire. As a rule of thumb, keep your receipts in case you have to cover additional living expenses before you submit a claim.
Section E:
This type of coverage exists if someone suffers an injury on your property or claims that you damaged their property. It can be a tricky situation, but it happens. Coverage E can also include some legal defense costs, too!
Section F:
Another interesting portion of your coverage that provides medical payments for persons who do not live at your residence that are injured on or by your property.
Whew, let us catch our breath!
While we are always here to help you with understanding both basic and complex insurance information, it is always nice to have a quick refresher to help you lock in the knowledge.
In case you missed it, we also have a quick video in our Ask an Expert series describing what is covered in your homeowner’s policy. That can be viewed here!
It is always encouraged to contact your insurance agent if you have any questions about your coverage. This is especially true if you have made significant upgrades to your home since you obtained your insurance policy!
Call us at 850.244.2111 or email at service@harrisinsurance.com if you need additional insurance information!
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LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
