Home Insurance Gaps, Exclusions, and Limitations
Following is a list of things many homeowners are unaware of regarding their Orlando home insurance policy. Insurance forms are not all created equal and without a professional insurance agent to help guide you with the right questions you could have a surprise during claim time.
- Financial Stability – In Florida many of the homeowners companies do not have a financial rating from AM Best. If you are able to get a quote from a company that has an AM Best financial rating of B+ or better this typically be your best option. If you are not able to find a company with an AM Best rating you will have to choose from companies which have a Demotech Rating. Most insurers in Florida have a Demotech Rating of A so you need to speak with your agent about the financial strength or ask them to provide the latest financials. Highest probability for you to suffer a homeowners loss is during a hurricane event. During these events your carriers financial stability will be tested.
- Flood Insurance – most people know flood insurance is not included in their homeowners insurance. However, homes in a low risk flood zone where banks do not require the coverage are subject to flood claims if a major hurricane event occurs. Many areas in low risk areas will be flooded that have not flooded in 30+ years. Hurricane Donna in the 1960’s caused massive flooding in Central Florida. Flood insurance in low risk flood zones is very cheap and a smart investment.
- Screen Enclosures – Many insurance companies today have added exclusions or limitations of coverage on the homeowners policy to exclude, limit coverage, or even exclude the screening portion of your screen enclosure but not the cage. It is important to speak with your agent if you have a screen enclosure so you can understand the limitation of your policy before a claim occurs.
- Animal Liability – if you have pets and they injure or bite someone you can be liable for those injuries. Many policies today excluded animal liability or limit coverage to only $25,000.
- Mold – Many policies limit the exposure to 10,000 or 25,000 or 50,000 in damage that occurs due to mold claims
- Jewelry, Guns, Art, Silver, Coins, Collectables – All homeowners policies provide very limited if any coverage for these items. If you have over $1000 in value in any of these items contact your insurance agent to get additional coverage
- Back-up Sewers & Drains – As with coverage above most homeowners policies either exclude damage or limit the amount of coverage provided
Contact our agency to discuss any of these coverage limitations that are typically found in Florida Homeowners policies. Please refer to your actual current policy for specific limitations or contact our staff.
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