A Detailed Breakdown of What Homeowner’s Insurance Covers
An estimated 65% of Florida households are owner-occupied, paying an average homeowner’s insurance premium of nearly $2,000.
Due to extreme weather patterns and the prevalence of wildfires, Florida is considered a high-risk area for insurance providers. This can affect insurance rates as well as the actual damage covered by homeowner’s insurance.
The question is, what does homeowner’s insurance cover for Florida residents?
Learn more about how your homeowner’s insurance policy works, what it covers, and what to do in the event that your home is damaged.
Premiums, Deductibles, and Claims: How Homeowner’s Insurance Works
When you are covered by homeowner’s insurance, you must pay a monthly or annual premium that maintains your coverage. Your premium will depend on the type of coverage you receive, and the liabilities your property may pose.
Your deductible is the amount you must pay out of pocket to cover the cost of damages before your insurance kicks in. The only way to pay towards your deductible is to file a claim, a decision that must be weighed carefully.
Most insurance policies will raise your premium if you file claims too often, which can be as infrequently as once every five years. For that reason, you don’t want to file a claim unless the damages amount to far more than your deductible.
In other words, if the damages in question amount to $2,500 but your deductible is $2,000, it’s probably not worth filing the claim. You may receive $500 to cover the immediate costs accrued from the damage, but you could up paying an extra $500 in premiums over the next few years.
So, what is the point of having homeowner’s insurance? It’s never out of the realm of possibility that your property will undergo major costly damage, in which case having coverage could save your finances. The question is, what damages are covered by your insurance?
What Does Homeowner’s Insurance Cover?
A basic overview of your homeowner’s insurance coverage will lead you to the conclusion that your property and personal belongings are covered in the event that they are damaged, lost, or destroyed. However, it is important to understand that this coverage is conditional. Whether or not you receive compensation will come down to the source of the damage.
Natural Disasters
Most homeowner’s insurance policies cover fire damage and damage caused by lightning. They also cover wind and hail damage, damage caused by heavy snow or ice, volcanic eruption, and frozen plumbing.
They often do not cover damage caused by flooding or earth movement such as landslides or earthquakes.
Structural Issues
Filing a claim after structural issues with the property occur can be tricky. It’s important to note that even damages that are covered will quickly go uncovered if the problem resulted from negligence.
Most homeowner’s insurance policies cover smoke damage, explosions, and falling objects like roofing materials or support beams. They will also cover issues related to bulging, cracking, or tearing apart, depending on the initial cause. They may also cover some damage caused by flaring electrical currents.
They will not cover damage related to power failure, and in most cases will not cover mold or fungus removal.
Theft and Vandalism
When it comes to damage caused by other people, most homeowner’s insurance policies are pretty straight forward. They will usually help you cover the loss of items that were stolen or vandalized. However, they may have a maximum amount that they will provide depending on the stolen or damaged item in question.
Fire Damage, Now What?
Wildfires are posing a huge threat to Floridians right now. Record-breaking high temperatures have started over a dozen wildfires recently, and these numbers are expected to grow.
For this reason, many Florida homeowners are asking what their insurance policy will do for them after fire damage. They’re also asking what is expected of them.
Contact Your Provider as Soon as Possible
In order to receive compensation for the cost of fire damage, you will need to file a claim as soon as possible. The insurance company will send out a claims adjuster to assess the damage. The sooner you get the ball rolling, the sooner your finances will be protected.
Hire Fire Damage Restoration Professionals
After a fire occurs, it is important that you bring in professionals to quickly restore any damaged areas. When the initial damage isn’t addressed, residual damage may occur, like roof collapse, that your insurance company will not pay for. In most cases, your insurance company will require immediate action in order for you to qualify for full coverage.
Keep Track of All Billing
Once you’ve hired restoration professionals, make sure you keep track of all billing. That way, you can prove to your insurance company exactly how much you’ve paid out of pocket to restore your home.
If the fire resulted in the loss of personal items, catalog this damage as well. Many homeowner’s insurance policies provide at least some coverage for the loss of personal items.
Find Fire Damage Restoration Professionals Near You
If you’re a Floridian wondering what your homeowner’s insurance will cover after a recent fire, you’re in luck. Your provider should cover most, if not all, of the damage relating to the current wildfires.
Barakat Restoration is here to help you restore your Florida home to its former glory after getting hit with fire or smoke damage. Contact us today and we’ll start the repairs right away.