In a recent entry, we talked about some of the basics of every Florida homeowners’ insurance policy and how to determine which level of coverage best suits your needs based on coverages and exclusions. Today, we will continue this discussion and find out which disasters and accidents are typically excluded from policies, helping you determine whether additional coverage is needed for your home.
Most Common Types of Policy Exclusions
Even though the typical homeowners’ policy is open-ended, specific clauses will limit the type of coverage you have. If you want to be covered for the following situations, you will need additional coverage added on top of your basic homeowners’ insurance policy.
Hurricane, Water, and Flood Damage to Your Home
A significant amount of confusion stems from the complexities of water and wind damage coverage in Florida, and information about exclusions is important to understand. As hurricanes are common and many Florida homes are close to the ocean, water and flood damage are a consistent and ever-present risk. Using a tool like the FEMA flood maps, you can determine the level of risk your house has for floods. Surprisingly, one percent or higher yearly risk for floods is considered high-risk, as this equates to above a twenty-five percent chance for flood damage over the course of a home’s 30-year mortgage.
To start, hurricane damage is covered in most policies, though deductibles are common. If hurricane winds cause damage to your home’s exterior, you can file a claim with your insurance company. However, hurricanes commonly cause floods and surges of water levels, which are not covered by hurricane protection (even though the hurricane is the direct cause of the issue.) Flood insurance is an additional purchase needed for this scenario, and some lenders will only lend money to new homebuyers if they also keep flood insurance current on the property.
You might think there are no more intricacies to storm and water damage, but you would be wrong. While homeowners’ insurance does cover unexpected damage and bills stemming from sudden occurrences like bursting pipes and damaged water heating systems, sustained water damage due to homeowner negligence is not covered.
For example, if a heavy storm damages your home’s outer wall and bursts a pipe, you will likely have multiple avenues to file an insurance claim. However, if this same pipe is only partially damaged, leaking for months while the homeowner ignores it, your claim may be denied. Additional damage incurred, like an explosion in nasty mold growth, will also not be covered.
Personal Property Exclusions
As we mentioned in our discussion of policy coverage types, most plans protect against theft and loss of personal property. However, the amount you can claim for each individual item is capped, and expensive items should always have an individual insurance plan associated with them to protect them from total loss.
Business Liability for the Home
In 2023, more people than ever are choosing to work from home, and this includes people who turn parts of their homes into full-fledged offices and business spaces. However, liability protections that apply to guests do not also apply if accidents or injuries occur during the course of business. Just because something takes place in your house does not mean the same protections apply, and most insurance involving business and commerce must be on a separate policy.
Ready to learn more? Call Anderson & Associates Insurance Group today – we are leaders in the insurance space servinig Sarasota, Manatee and Palmetto.
