HO-3: comprehensive coverage for single family home or townhome that includes the roof; typically comes with wind coverage for named storms

HO-6: walls in coverage for a condo (does not include the roof), HOA typically has master policy for roof and or flood in this instance; typically comes with wind coverage for named storms

HO-4: renter’s policy (contents only)

DP-3: dwelling policy for a property that the owner does not reside in and that is rented/leased out on annual basis, typically comes with wind coverage for named storms

HO-8: basic coverage for owner occupied home that covers only named perils (e.g. Aircraft, Civil unrest and riots, Explosions, Hailstorms and windstorms, Lightning and fire, Smoke, Theft, Vandalism and malicious mischief, Vehicles, Volcanic eruptions) that is typically used for homes over 40 years of age/historic sites with older electrical, plumbing, heating, etc.

Inspections and why you need them

Two main inspections are typically required by carriers to bind coverage to give them a better idea of the property that they are insuring: wind mitigation and 4 point inspection.

Wind Mitigation: Very important in the sunshine state, the wind mitigation is needed for property of any age that is seeking coverage that includes the roof. This inspection shows the roof age, material, how attached to the structure, any secondary water resistant (SWR) if applicable and opening protection credits (e.g. hurricane shutters, impact windows/doors). These inspections cost approximately $100 to complete with a license inspector and are valid for 5 years from the date of inspection.

4 Point Inspection: The 4 Point inspection is required when the property is older than 30 years old. This inspection gives the insurance company a comprehensive look at the HVAC system, electrical, plumbing and roof to give them a better idea of the condition of the property they are insuring. These inspections cost approximately $100 to complete with a licensed inspector and are valid for 1 year from the date of inspection.

Coverages: What do they mean? 

Cov A / Dwelling: This covers your structure: the walls, flooring, cabinetry, roof (for HO-3)—items permanent to the home.

Cov B / Other Structures: This covers items detached from the home, still on the property (e.g. fence, shed).

Cov C / Personal Property: This covers all the contents of your home that you could pick up and take with you in the event you move (e.g. furniture, clothing, area rugs, electronics, etc.) These items are insured at “actual cash value” (ACV) at the time of the loss which means you get what they are worth for them at that point in time, not what you purchased them for, unless you carry an endorsement referred to as “personal property replacement cost” which would reimburse you for these items at the rate you purchased them.

Cov D / Loss of Use: This covers you in the event that you experience a loss and are displaced from your property. This coverage would help incur the costs of putting you up somewhere while you are out of the home.

Liability: This covers you if someone should injure themselves in your home (e.g. slip and fall).

Medical Payment: This covers you for the costs of someone who needs medical treatment if they are injured in your home.

Ordinance or Law: This coverage assists in paying for demolition costs & or increased construction costs as a result of newer building code enforcement or ordinances when repairing or replacing your dwelling after a covered insurance loss.

Water Backup Coverage: This is an optional endorsement that may help pay for water damage resulting from a backed up drain or sump pump. For instance, it may help cover the cost of replacing furniture or removing water after an unexpected backup.

What is an RCE?

Replacement Cost Estimator is how the insurance carrier determines how much it would cost to rebuild your home in the event of a total loss, not how much you could sell your home for as this would typically be more.

Replacement Cost Estimator is how the insurance carrier determines how much it would cost to rebuild your home in the event of a total loss, not how much you could sell your home for as this would typically be more.

Most people often think that they do not need flood coverage or are under the impression that they are covered with their homeowners policy. The truth is that flood is:

• the number one claim filed
• over 20% of claims come from properties outside high-risk flood areas
• it is not covered with your standard homeowners policy

Flood coverage is a separate endorsement or policy that covers rising water outside the home. Did you know that all of Florida is considered a flood zone? It is not really determining if you do or do not live in a flood zone, but rather if the zone you live in is more or less likely to flood. With this in mind, it’s always a good time to consider flood insurance to protect your investment. A few things to keep in mind with flood policies are that they have a 30 day wait period before they go into effect (unless they are required by your bank at the time of closing for a sale), policies have to be paid in full and the prices are regulated by the NFIP, so no shopping around for the best rate required for this policy.

Articles of Interest:

 https://myfloridacfo.com/docs-sf/insurance-consumer-advocate-libraries/ica-documents/anywhere-it-rains-it-can-flood.pdf?sfvrsn=4fb0a8a7_12

Bodily Injury Liability: This pays if you are responsible for another person’s injury or death in an auto accident and it also pays for your legal defense.

Property Damage Liability: This pays for damage you are responsible for to another person’s property.

Personal Injury Protection (PIP): This pays for expenses like medical bills, lost wages or funeral costs after a car accident, no matter who is at fault. This is also known as “no fault insurance.”

Uninsured Motorist-- Stacked vs. Unstacked: What does it mean? Stacked car insurance increases your uninsured motorist (UM) and underinsured motorist coverage (UIM), depending on the number of vehicles you own. ... Unstacked coverage applies your standard coverage limits to one specific vehicle, without combining the amounts. Typically speaking if you have one vehicle, you won’t get stacked coverage. Florida has a lot of uninsured drivers, so adding this coverage, stacked or unstacked, may not be a bad idea for a couple more bucks a month.

Deductibles: This is the amount you agree to pay before your insurance kicks in for collision or comprehensive claims.  Collision covers damage to the insured vehicle in the event it overturns or collides with another car or object, other than an animal. Collision deductibles may vary between vehicles.  Comprehensive covers losses to the insured vehicle for reasons other than collision (Fire, theft, vandalism, wind, hail, breakage of glass, or impact with an animal). 

If you are wondering why homeowners insurance rates are on the rise, why carriers are dropping customers with no claims or if Citizens is really the only option for coverage right now, then you are not alone. Due to the current market situation, we are seeing rates for current policies and new quotes rise and even some customers receive non-renewals on their policies. These events are happening for a couple reasons. One is that the carriers were approved a rate hike by the state in the last year, so we are most likely going to be feeling the effects of this increase now and possibly through 2022 as well. Florida is normally listed as one of the top states for insurance fraud, but recently carriers have been experiencing a level of litigation that has been unprecedented for them and it’s not from hurricane claims, it’s mostly from roof related claims dating back a couple years. Since the carriers are being hit hard with legal fees, most of the big carriers are “tightening their belts” and limiting their exposure (e.g. non-renewing clients). In the process, this means that private carriers like Progressive, Universal, United Property and Casualty and so on are limiting or not writing new policies at all, which leaves homeowners with one option: Citizens. Citizens for most is used as a last resort and usually comes with some bad connotation when spoke of in conversation. Thankfully, the homeowners of Florida have this state backed carrier to fall back on right now. Offering reliable coverage that may seem a little less comprehensive than you may see from the bigger private names, Citizens is still a viable and fortunate option to have, especially for those who are required to carry insurance by their mortgage lender. At Route 1, we are working with current clients and potential clients to place them with coverage if need be under Citizens or in some cases, a combination of Citizens and other companies who may be able to provide limited coverage (depending on zip code, structure age, roof and other criteria). If you have questions about getting coverage or need assistance navigating the insurance market, feel free to contact us at Route 1 to show you the way.

https://www.jaxdailyrecord.com/article/review-and-comment-the-bill-that-can-save-floridas-economy

https://fltortreform.com/news/home-insurance-benefits-could-shrink-to-head-off-the-spiral-towards-collapse/