Understanding Your Florida Homeowners Insurance Policy: Storm Coverage Explained

As hurricane season officially begins, Florida homeowners need to understand exactly what their insurance policies do—and don't—cover when it comes to storm damage.

Key Policy Terminology Explained

When reviewing your policy, watch for these critical terms:

• Peril: A specific risk or cause of loss (like wind damage or fire)

• Named Storm Coverage: Special provisions that apply specifically to named hurricanes or tropical storms

• Replacement Cost Value (RCV): Coverage that pays to replace damaged items with new ones

• Actual Cash Value (ACV): Coverage that pays the depreciated value of damaged items

• Additional Living Expenses (ALE): Coverage for temporary housing if your home becomes uninhabitable

Hurricane Deductibles vs. Standard Deductibles

Florida homeowners face a unique dual-deductible system:

Standard Deductible:

• Fixed dollar amount (typically $500-$2,500)

• Applies to everyday claims like fire or theft

Hurricane Deductible:

• Percentage-based (typically 2-5% of your home's insured value)

• Only triggered when the National Hurricane Center declares a hurricane

• For a $300,000 home with a 2% hurricane deductible, you'll pay $6,000 out-of-pocket before insurance coverage begins

Recent Changes in Florida Property Insurance

Florida's insurance landscape continues to evolve:

1. Assignment of Benefits (AOB) changes: As of January 1, 2023, policyholders with new policies can no longer assign their insurance benefits to third parties like contractors

2. Claim filing deadlines: Be aware of shortened notification periods for claims

3. Proof of loss requirements: More stringent documentation standards are being enforced

Understanding these policy details before disaster strikes is essential for protecting your home and financial well-being. For a complimentary policy review, contact Innocent Law Firm today.

⚠️ Disclaimer: This information is for educational purposes only and does not create an attorney-client relationship.