10 Common Insurance Mistakes Florida Homeowners Make
Even savvy homeowners make insurance mistakes that can prove costly when disaster strikes. Here are the ten most common mistakes we see Florida homeowners make.
1. Confusing Home Value With Rebuilding Cost
Your home market value and rebuilding cost are different. The land under your home has value, but you do not need to insure it. However, rebuilding costs include labor and materials at current prices, which may be higher than your purchase price.
Fix: Base dwelling coverage on replacement cost, not purchase price or appraised value.
2. Thinking Flood Is Covered
This is the biggest misconception. Standard homeowners insurance NEVER covers flooding. Yet homeowners regularly assume they are covered until they file a claim.
Fix: Purchase separate flood insurance, even if you are not in a high-risk zone.
3. Not Understanding Hurricane Deductibles
Many homeowners are shocked to learn their hurricane deductible is a percentage of dwelling coverage, not a flat dollar amount. A 5% deductible on a $400,000 home is $20,000 out of pocket.
Fix: Know your hurricane deductible in dollars and have savings to cover it.
4. Skipping Wind Mitigation Inspections
Wind mitigation inspections cost $75-150 but can save hundreds annually. Many homeowners never get one, leaving money on the table.
Fix: Get a wind mitigation inspection, especially if your home was built after 2002 or has been upgraded.
5. Underinsuring Personal Property
Most people underestimate the value of their belongings. When fire or theft occurs, they realize they cannot replace everything.
Fix: Create a detailed home inventory. Total everything and ensure your personal property coverage is adequate.
6. Ignoring Policy Exclusions
Exclusions tell you what is NOT covered. Homeowners often assume coverage exists without checking.
Fix: Read the exclusions section of your policy. Ask your agent about anything unclear.
7. Letting Roof Maintenance Slide
In Florida, roof condition determines insurability. A neglected roof can result in non-renewal or inability to find coverage.
Fix: Maintain your roof. Replace it before it becomes a problem. A new roof opens more insurance options.
8. Not Reviewing Coverage Annually
Home values change. Construction costs increase. Coverage that was adequate five years ago may be insufficient today.
Fix: Review your policy every year at renewal. Adjust coverage for inflation and improvements.
9. Filing Small Claims
Filing claims for minor damage can increase your premium and hurt your claims history. Some homeowners file claims for anything, not realizing the long-term cost.
Fix: Consider paying for small repairs yourself. Reserve claims for significant losses.
10. Choosing Insurance Based Only on Price
The cheapest policy often has the worst coverage or comes from financially shaky companies. When you need to file a claim, you want a company that pays.
Fix: Compare coverage details, not just price. Check carrier financial ratings. Work with an independent agent who can advise you.
Bonus: Not Working With an Independent Agent
Captive agents represent one company. Independent agents shop multiple carriers for your best option. Many homeowners limit themselves unnecessarily.
Fix: Work with an independent agent who can compare options and advocate for you.
Ready to avoid these mistakes? Contact Anchor & Atlas Insurance for a comprehensive policy review.
