What Does My Homeowners Policy Cover? How to Read Your Florida Policy
Updated: Oct 11
Most Florida homeowners have insurance, but few know exactly what it covers. Many learn the details only after a loss, when an unexpected exclusion leaves them with a large bill. A short review now can save real money and stress later.
In this article
Here is how to read your policy and what to look for.
Start with the four main parts
Most homeowners policies follow a similar structure. Once you know the parts, the document becomes much easier to read.
Declarations page. This is the summary. It lists your coverage limits, deductibles, policy period, and any endorsements.
Insuring agreement. This describes what the insurer promises to cover and under what conditions.
Exclusions. This lists what is not covered. Read it closely, because exclusions often decide claims.
Conditions. This explains your duties and the insurer's duties after a loss, such as notice, inspection, and documentation.
Also look for endorsements. These are add-ons that change the base policy. An endorsement can add coverage, limit it, or change a deductible.
What a typical policy covers
Most homeowners policies include several types of coverage. Each has its own limit on the declarations page.
Dwelling: the structure of your home.
Other structures: a detached garage, shed, or fence.
Personal property: furniture, clothing, electronics, and other belongings.
Loss of use (additional living expenses): extra costs if your home becomes unlivable during repairs.
Personal liability and medical payments: claims by others who are injured on your property.
Your policy may cover losses on an "open peril" basis, a "named peril" basis, or both. Open peril generally covers any cause not excluded. Named peril covers only the causes listed.
Wind versus flood
This distinction matters a great deal in Florida. Wind damage is often covered by a standard homeowners policy, unless wind coverage was excluded. Flood damage, including storm surge, generally is not.
Flood coverage usually requires a separate flood policy. A single storm can cause both wind and flood damage. When that happens, the cause of each part of the damage can become the central dispute.
Hurricane deductibles
Florida policies often carry two deductibles. A standard deductible is usually a fixed dollar amount for everyday losses like fire or theft.
A hurricane deductible is often a percentage of your dwelling coverage. Before issuing a homeowners policy, a Florida insurer generally must offer hurricane deductible choices of $500, 2%, 5%, and 10% of the dwelling limit, with some exceptions for higher-value homes, and must show the actual dollar amount of a separate hurricane deductible on the declarations page (section 627.701(3) and (4)(b), Florida Statutes). The hurricane deductible applies once per calendar year to all covered hurricane losses under policies from the same insurer or insurer group. If a second hurricane causes a loss that year, the insurer may apply the greater of whatever remains of your hurricane deductible or your regular deductible (section 627.701(5)(a)). The hurricane deductible applies to loss caused by a hurricane. Under Florida law, a hurricane lasts from the time the National Hurricane Center issues a hurricane warning for any part of Florida until 72 hours after the last hurricane watch or warning for any part of Florida ends (section 627.4025(2)(c) and (d), Florida Statutes).
Here is a hypothetical. If your dwelling coverage is $300,000 and your hurricane deductible is 2%, you would pay the first $6,000 of a hurricane loss. Check your declarations page for your actual numbers.
Key terms that affect your payment
Replacement cost value (RCV): the cost to repair or replace with new materials of like kind and quality.
Actual cash value (ACV): replacement cost minus depreciation.
Deductible: the amount you pay before coverage begins.
Peril: a cause of loss, such as wind, fire, or lightning.
Replacement cost policies often pay ACV first, then the rest as repairs are done; for a dwelling, Florida requires at least ACV up front (section 627.7011(3)(a), Florida Statutes). Some roof coverage is limited to ACV. Your policy's loss settlement section explains how it works for you.
Common exclusions and limits
Every policy is different, but certain exclusions appear often in Florida. Look for these:
Wear and tear, deterioration, and lack of maintenance.
Long-term leaks or seepage, sometimes described as damage occurring over a period of time.
Mold, fungus, or bacteria, often excluded or capped at a low limit.
Water damage sublimits, which may cap certain water losses far below your dwelling limit.
Mold deserves special attention in our humid climate. It is often hidden until the problem is serious. Ask whether your policy offers added mold coverage by endorsement.
Recent changes to know about
Florida property insurance law has changed significantly in recent years. For residential property insurance policies issued on or after January 1, 2023, homeowners generally can no longer assign their post-loss insurance benefits to contractors or others, and an attempted assignment is void (section 627.7152(13), Florida Statutes).
Claim notice deadlines have also been shortened: notice of a new or reopened claim is now due within 1 year after the date of loss, and a supplemental claim within 18 months (section 627.70132, Florida Statutes). These changes make it more important to act quickly after a loss.
Questions to ask your agent or insurer
What perils are covered, and which are excluded?
Do I have wind coverage? Do I need separate flood coverage?
What are my standard and hurricane deductibles?
Is my dwelling paid at replacement cost or actual cash value? What about my roof?
Are there special limits on water, mold, jewelry, or electronics?
What endorsements are available to fill gaps?
Review your policy each year at renewal. Home values, construction costs, and policy terms change. A coverage limit that fit five years ago may fall short today.
Your policy is a contract, and its words control how a claim is paid. Reading it before a storm puts you in a stronger position after one. If your insurer has delayed, underpaid, or denied your claim, request a free claim review or call (954) 903-1737.
About the author. Kimberly Innocent is a Florida attorney who represents homeowners in first-party property insurance disputes, including hurricane, wind, water, and mold coverage claims. She has practiced law since 2015 and has focused her practice on insurance litigation for over a decade.
This article provides general information and is not legal advice. Reading it does not create an attorney-client relationship. Every policy and claim is different; consult a lawyer about your specific situation.
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