Natural disasters can often strike unexpectedly and result in severe damages to your home and property. Understanding all of the details of your homeowners insurance policy is key to knowing if you are protected against these different scenarios. Homeowners in Florida can choose from numerous residential insurance policies that offer various levels of protection against natural disasters. HO-3 insurance policies are the most common for homeowners due to their broad range of coverage. It’s often recommended to partner with an insurance agency to help you find the best coverage to meet your needs.
Understanding Different Types of Coverage
Insurance companies categorize different types of damages by peril. Some perils are included, while others are excluded on a homeowners insurance policy. Typically, an insurance policy for your home will cover any damages due to hail, wind, fire, or lightning. However, many of these policies differ on the level of coverage they offer. For example, an HO3 offers home insurance coverage for a broad range of risks, while a DP1 policy is the most basic level of coverage for rental property or homes that are usually vacant.
Comparing Open-Peril vs Named-Peril Policies
Open-peril policies will cover all of the damages unless it’s a specifically excluded peril. For example, an HO-3 includes open-peril dwelling coverage, but it does have a few major exclusions, which include earthquake, flooding, and neglect. On the other hand, named-peril policies will only cover the specific risks listed within the policy, as it doesn’t offer as broad coverage compared to open-peril policies. Sometimes homeowners insurance can include both open-peril and named-peril sections, as it’s important to reach out to your insurance agent to learn about these details.
Which Natural Disasters Aren’t Usually Covered?
Learning about the different natural disasters that aren’t usually covered in a homeowners insurance policy is essential to determine if you need additional coverage. For example, floods, earthquakes, sinkholes, and mudslides aren’t usually covered in a traditional policy due to the severity of these disasters. Choosing a separate policy is a good idea if you live in an area that’s prone to experiencing these natural calamities.
Here is an overview of these additional policies.
Flood Insurance
Flood insurance is available as a separate policy from the National Flood Insurance Program (NFIP). Typically, flood insurance offers a maximum of $250,000 in dwelling coverage while providing $100,000 in personal property insurance. You can buy private flood insurance from an insurance agency or choose FEMA-issued flood insurance. Purchasing flood insurance is a necessity if you live in a flood plain designated by FEMA due to the high likelihood of experiencing flooding.
Earthquake Insurance
Earthquakes are usually excluded from homeowners insurance policies due to them being considered “ground movements.” However, you can purchase a separate policy if you live in an area that’s prone to experiencing earthquakes. While Florida isn’t as known for earthquakes compared to other states, they still happen on occasion. Earthquake insurance in Florida will also be much cheaper compared to California, as it’s a good idea to reach out to your agent to discuss your options.
Catastrophic Ground Cover Collapse/Sinkholes Insurance
Sinkholes can happen due to water erosion causing cavities within the ground, which can result in massive damages to a home. Florida is especially prone to sinkholes compared to other areas in the country. However, Florida is the only state that requires catastrophic ground cover collapse coverage due to the increased risk of these natural disasters. You may even choose to purchase sinkhole coverage if your carrier offers it, as it provides more comprehensive coverage.
Landslides and Mudslides Coverage
Landslides and mudslides aren’t covered in a homeowners insurance policy due to them being considered “earth movements.” These landslides can happen due to a large amount of water eroding the soil from a steep slope. While water is the main reason for a mudslide, flood insurance doesn’t apply to this situation. You can even buy a “Difference in Conditions” policy to insure your home against these dangers, as it’s usually an add-on endorsement or it’s sold separately.
Will Homeowners Insurance Cover Hurricane Damages?
Florida is prone to numerous hurricanes that can lead to extensive damages to your home and property. Fortunately, the majority of homeowners’ insurance policies will cover any wind damage or even wind-driven rain due to a hurricane. However, home insurance doesn’t provide coverage for flooding damages during a hurricane storm surge. Purchasing flood insurance is often a good idea to give you an added layer of protection.
Reach Out to Wellcovered Insurance to Learn More Information
Wellcovered Insurance is a top insurance agency in Florida that partners with over 30 insurance carriers across the nation. Our team will work with you to find the insurance coverage you need, as we keep an active presence in Seminole and Volusia County.
Meeting the different needs of each client is our priority, as we are listed as one of the most highly rated insurance agencies on Google Reviews due to our focus on providing superior customer service. Our insurance agency specializes in a wide range of coverage, whether you are interested in homeowners insurance, rental property, mobile home, condo, flood, car, boat, professional liability, and much more.
We are also available to answer any of your insurance questions, as we will return your phone call on the same day. You can also receive an auto quote in 15 minutes or less, and it only takes between one to two business days for you to get a home quote. We are also an active member in both the DeLand Breakfast Rotary and the West Volusia Regional Chamber of Commerce.
Feel free to contact Wellcovered Insurance today to learn more about our many insurance options!
