Florida Home Insurance Laws

Are the Florida home insurance laws too difficult to understand? The State of Florida has some very specific laws that govern the activities of FL home insurance companies within the state. Since every homeowner’s insurance policy is different, every property owner should take the time to become educated about their existing policy and the gaps that may need to be addressed. This overview of Florida home insurance laws will help you to understand what is required of homeowners and insurance companies alike.

Once you become familiar with Florida home insurance laws, enter your ZIP code at the top of this page to find the best homeowners insurance rates in your area!

Overview of Florida Home Insurance Laws

The State of Florida does not require every homeowner to carry insurance against the loss of the structure. Choosing to not carry homeowner’s insurance that covers the replacement cost of the home in the event of a catastrophic loss can be a very costly decision for the person who is unable to pay to rebuild the home. Insurance rates in Florida are based on the frequency of natural disasters in the form of tropical storms and hurricanes.

Florida cities and counties might require all homeowners within the boundaries of the jurisdiction to cover liability insurance. While the replacement of the structure itself is not covered under a liability-only insurance policy, any personal injury or property damage sustained by another person would be covered up to the policy limit. When a tree on the property falls on another home, the liability policy would cover the costs to repair or replace the property belonging to another person. If the homeowner has a swimming pool or certain types of pets, the development or subdivision may require liability coverage on the property. Proof of the in force liability policy may be required every year by the homeowner’s association. Florida home insurance laws support this requirement by entities of various kinds throughout the state.

Homeowners whose homes are mortgaged must carry full coverage on the structure as stated in the contract with the financial institution. Certain coverage requirements can be mandated by the bank carrying the mortgage to cover their loss in the event the home is damaged or destroyed by fire, wind, hurricane, vandalism or theft. Some areas are prone to flooding, and the financial institutions are able to require flood insurance coverage under Florida home insurance laws.

Many types of homeowners insurance are written on standard forms that provide specific coverage.

Premium-Reducing Florida Home Insurance Laws

Insurance companies have asked the Florida legislature to allow them to remove wind coverage from the standard homeowner’s insurance policies. Instead of granting this request, the legislature has passed Florida home insurance laws that require insurance companies to provide discounts to homeowners that participate in windstorm mitigation efforts.

• New construction techniques have been used to reduce the damage incurred by hurricanes and tropic storms.
• Wind restrictive construction features that reduce storm damage and hold the structure together in high winds.

The Hurricane Retrofit Guide is available through the Florida Division of Emergency Management. This guide provides specific steps for the homeowner that must be taken to reduce wind and rain damage to the property. Each homeowner is able to prioritize the improvements that would benefit their property based on location in Florida. After the work is completed, proof of completion is provided to the insurer and annual premium rates are adjusted to reflect discounts. The premium discounts apply to the wind-related coverage and not the entire homeowners policy premium.

As hurricane-stricken areas are rebuilt using these new construction techniques, Florida home insurance laws protect homeowners from exorbitant premium rates through legal restraints on the rates that an insurer can charge. Since new homes are built using proven wind restrictive techniques, the damage from subsequent storms is reduced so the cost of repairs is also lower.

Special Considerations of Florida Home Insurance Laws

Standard home insurance coverage will rarely cover the cost of extraordinary events, and the responsibility to purchase sufficient coverage rests on the homeowner. The legislature has passed some special Florida home insurance laws to govern the many special situations that exist in The Sunshine State.

• Sinkholes – Section 627.706(2)(a), of the Florida Statutes states that every authorized insurer must cover events involving catastrophic ground cover collapse. If a partial collapse occurs, the insurance company may deny a claim against the homeowner’s insurance claim for repair of the property. All homeowners should verify the exact coverage provided by their current homeowner’s policy and evaluate the occurrence of sinkholes in their area. Additional coverage riders can be added to cover damage that is covered by a partial ground collapse that is caused by the opening of a sinkhole.
• Hurricanes – Florida law requires all insurers to cover wind damage associated with a storm that is declared a hurricane by the National Weather Service. Some insurers have a separate deductible associated with hurricane-related repairs. When the homeowner is unable to find insurance in the private market, the Citizens Property Insurance Corporation, which was set up by the Florida legislature, might be able to help. The legislature has also set up a reinsurance system to provide insurance to the companies hardest hit by hurricane losses. These activities are meant to provide a stable source of reimbursement when hurricanes cause widespread damage.
• Floods – Storm surge is the primary cause of property damage. Most homeowner’s insurance policies do not require coverage from floods or the storm surge that accompanies major tropical storms. Flood insurance can be obtained through the National Flood Insurance Program. Prudent homeowners study the probability indicators for their given areas and purchase sufficient flood insurance prior to natural disasters.
• Additional Living Expense (ALE) – Florida law does not require insurance companies to provide funds up front for additional living expenses. When the insurance policy provides ALE coverage for direct damage to the property, houses close to the property that are damaged or access limited by civil authorities, most insurers will require the policyholder to pay their expenses and provide receipts for reimbursement. Every homeowner should be aware of the limits set by the policy prior to incurring expenses to prevent rejected claims against the policy.
• Mold and Fungi – Tropical moisture is a constant threat to homes in Florida. Insurance companies are not required to cover damage from mold and fungi that can grow on any surface and cause irreparable damage. Since standard homeowner’s policies do not cover flood damage, the mold that grows immediately after floodwaters recede may not be covered either. Awareness of the coverage offered will prevent surprises when mold and fungi are discovered.

Compare Florida Home Insurance Coverage Online!

Do not assume that your current homeowner’s insurance policy covers all of your needs. Finding a new insurance company or policy is not as difficult as it might seem. Our free Florida Home Insurance Coverage comparison can provide the information you need with just a few clicks. Once you understand the legal requirements for home insurance coverage in your area make a list of questions. Enter your ZIP code at the top of the page and get started shopping for better Florida home insurance coverage today!