Florida’s hurricane season is at peak and will last approximately another two months. Review your insurance policy to avoid ugly surprises. While policies vary, here are some important general items to understand:

Hurricane Deductible

Your homeowner’s insurance deductible is the amount that you pay out of pocket before your insurance will pay for a covered loss. In Florida, homeowners have a separate higher deductible that applies specifically to hurricane-related damage. Most hurricane insurance policies have deductibles of 2%, 5%, or 10% of your home’s insured value.

Example: If your home is insured for $200,000 and you have a 5% deductible, you’ll need to pay $10,000 out-of-pocket before insurance covers hurricane damage.

Replacement Cost vs Actual Cash Value

A typical policy will  insure the home and contents at either replacement cost or actual cash value. Replacement cost coverage  means the house, or the lost items, will be replaced with something new of similar quality, up to a specified dollar limit. Actual cash value factors in depreciation. So, if your 12-year-old appliances are destroyed, the reimbursement will be at their current used value.

Flood Damage

Standard homeowner’s insurance policies do not cover floods. A separate policy needs to be purchased. If you live in a flood zone and have a mortgage, flood insurance may be required.

Know Your Numbers
Don’t wait until a storm hits to find out what your policy covers.

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