Insurance Laws for Hurricane Coverage in Florida

The storm is one of the most catastrophic natural disasters anywhere in the world. However, hurricanes occur frequently and regularly every year in some places, such as Florida. Besides its catastrophic consequences to homeowners, the disaster forces insurance companies to provide an enormous amount of payout. To some extent, insurance companies may avoid providing coverage at all.

Coverage for Hurricane

By law, all home insurance companies providing coverage for homeowners must give financial protection against windstorm damage caused by a hurricane. In other states, some natural disasters are excluded from homeowners insurance, meaning you need to purchase it separately. In Florida, the state’s government make it mandatory for every insurer to provide a price for windstorm coverage. The protection will include all damages caused by a hurricane from the exterior to the interior. Hurricane coverage must also include damages caused by rain, snow, and dust.

Discount

Although hurricane coverage has always been an expensive issue in Florida, insurance companies may offer some good discounts. If homeowners install wind-resistant features, they are eligible for discounts. The second law is that all insurance companies must notify or inform policyholders about the discount. There are many diverse types or models of construction that give a wind-resistant advantage, and the maximum discount can reach up to a 42% reduction from the actual cost.

Deductible

While insurers are required to include hurricane protection in homeowner insurance, it is possible to set a different deductible for that particular disaster. The amount of deductible is set by law as follows:

1. For a house worth up to $100,000, the maximum deductible is 2% of the home’s value
2. For a house worth between $100,000 and $500,000, the maximum deductible is 5% of the home’s value
3. For a house worth more than $500,000, the maximum deductible is not limited

Some home insurance companies help residents of Florida to get easy access to homeowners insurance regardless of how open your house is to a hurricane. Although the laws and regulations are strict enough to keep fair access, private insurers may avoid providing coverage, depending on your circumstances.

Those who cannot acquire hurricane coverage via the traditional market are allowed to apply for insurance in a different way. However, the price for the coverage might be probably higher than normal; the main purpose is to keep a healthy professional competition between private companies in the market.