Homeowners insurance is a crucial safeguard for Florida residents, protecting against a variety of risks like storm damage, theft, and liability claims. However, it’s essential to understand that not everything is covered under a standard homeowners insurance policy. While these policies provide broad protection, there are several exclusions that homeowners need to be aware of to avoid surprises when filing a claim. In Florida, where natural disasters and unique risks are prevalent, knowing what is not covered can help ensure that you’re adequately protected.
In this post, we’ll go over common exclusions in a standard homeowners insurance policy in Florida and explain why you may need additional coverage to protect your property fully.
Flood Damage
What's Not Covered
Flood damage is one of the most common exclusions in homeowners policies. A standard home insurance policy typically does not cover any damage caused by flooding, which can occur due to heavy rainfall, hurricanes, or rising water levels from rivers, lakes, or storm surges.
Example
Imagine a tropical storm causes the nearby river to overflow, flooding your home. The damage to your floors, walls, and personal belongings would not be covered by your standard homeowners insurance policy. To protect your home from flood risks, you’d need to purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer.
Termite and Pest Damage
What's Not Covered
Damage caused by termites, rodents, or other pests is not covered under a standard homeowners insurance policy. Homeowners are responsible for maintaining their property and preventing pest infestations, which means any resulting damage from such pests won’t be reimbursed by insurance.
Example
Termites gradually eat away at the wooden beams in your home, causing structural damage. Unfortunately, since this type of damage is due to maintenance neglect and pest control issues, it won’t be covered under your insurance policy. Homeowners should regularly inspect their property and consider pest control services to prevent infestations.
Wear and Tear or Maintenance Issues
What's Not Covered
Homeowners insurance does not cover damage caused by normal wear and tear or poor maintenance. Over time, homes naturally deteriorate, and problems such as a leaky roof, peeling paint, or aging appliances are expected. Insurance policies do not cover repairs or replacements for these types of issues.
Example
The roof of your house develops leaks because it is old and has been neglected over time. Water seeps into your home, damaging the ceiling and walls. Since this damage is due to lack of maintenance, your homeowners insurance would not cover the repairs. Regular maintenance, such as roof inspections and timely repairs, is key to preventing these issues.
High-Value Items (Jewelry, Art, etc.)
What's Not Covered
Standard homeowners insurance policies typically have limited coverage for high-value items like jewelry, artwork, antiques, and collectibles. These items may exceed the limits of your personal property coverage, meaning you may not receive full reimbursement if they are damaged, stolen, or lost.
Example
A burglary occurs at your home, and several pieces of valuable jewelry are stolen. If your policy’s personal property coverage has a limit of $1,000 for jewelry and your stolen items were worth $5,000, you would only be reimbursed for a fraction of the loss. To fully protect these items, you may need to purchase a scheduling endorsement or separate valuable items policy.
Business-Related Damage
What's Not Covered
If you operate a business from home, a standard homeowners insurance policy generally does not cover business-related losses. This includes damage to business equipment, liability for business-related injuries, or loss of inventory. For business owners, a separate business insurance policy is often needed.
Example
A client visits your home-based business and is injured on your property. If you don’t have the right business insurance, you would be personally liable for their medical expenses and any lawsuit that may follow. To protect your business, you should consider adding home business insurance or a business owner’s policy (BOP).
Conclusion
While homeowners insurance in Florida offers important protection, it’s crucial to be aware of the exclusions that might leave your home vulnerable to significant risks. Floods, earthquakes, pests, wear and tear, and damage to high-value items are just a few examples of things not covered under a standard policy.
To ensure your home and belongings are fully protected, consider adding endorsements or purchasing separate policies for flood insurance, high-value items, and business insurance. Consulting with a knowledgeable insurance agent, like those at Bridges Insurance Agency, can help you tailor a policy that meets your specific needs and risks in Florida.