Homeowners Insurance · Florida
Homeowners Insurance Ft. Lauderdale
Weather Damage
Shattered windows or damaged roofing after a storm or tornado.
Burglary
Loss of belongings in your home resulting from a break-in.
Vehicle Collision
Damage resulting from a vehicle colliding with your home.
Guest Injuries
Physical therapy or medical costs from a guest hurt on your property.
Liability Lawsuits
A personal injury lawsuit being filed against you as a homeowner.
Understanding Homeowners Insurance Coverage
What Is Homeowners Insurance?
A home is more than just a structure that holds your belongings. It is a place of comfort that has seen you and your family through it all. Protecting that comfort can become costly, especially when unexpected expenses arise. A homeowners insurance policy can help protect your home and its belongings by paying for certain financial losses caused by covered damage.
If you have a mortgage, a homeowners insurance policy may also be required as part of your loan agreement.
South Florida homeowners are no strangers to severe weather and unexpected property damage. A reliable homeowners insurance policy may help with certain losses related to property damage, medical payments, liability claims, and injuries to others, depending on your policy.
What Does Homeowners Insurance Help Protect?
Depending on the policy you choose, homeowners insurance in Florida may help cover losses related to:
- Weather-related damage, such as shattered windows or damaged roofing after a tornado or storm
- Burglaries that result in the loss of belongings in your home
- Damage resulting from a vehicle colliding with your home
- Injuries requiring physical therapy from a guest that falls or gets hurt in your home
- A personal injury lawsuit being filed against you as a homeowner
A homeowners insurance policy is not just for the owner of a traditional single-family home. Owners of condos, townhomes, co-op homes, mobile homes, as well as renters, may benefit from coverage depending on their living situation. Liability coverage may help with property damage or injuries to others.
Who Is Covered By Homeowners Insurance?
A homeowners insurance policy may cover more than the person named on the policy, depending on the policy.
Spouse
The homeowner’s spouse, if living in the same home, may be covered under certain sections of the homeowners insurance policy, such as personal property and liability coverage.
Residents
Certain residents living in the same home may be protected under personal property and liability coverage sections of the homeowners insurance policy. To be covered under the policy, residents must either be relatives of the policyholder or under 21 and under the care of a member of the policyholder’s family.
“Named Insured” Individual
The Named Insured is the primary person listed on the homeowners insurance policy. The “Named Insured” is typically the person listed as the owner on the title or home deed to ensure they have an insurable interest in the property. The Named Insured may request policy updates, review coverage limits, file claims, or make changes to who is listed on the policy.
A Named Insured is covered under property insurance for the home, personal property insurance, and liability insurance, giving this individual the broadest protection under the insurance policy.
Condo owners and renters have different coverage needs than the owner of a traditional single-family home. For example, while a condo owner owns their unit, they do not own the entire building structure. The policy covers only the parts they are responsible for. A renter who does not own the unit or the building may need coverage for their belongings and liability rather than the building.
What Is Covered By Homeowners Insurance?
A homeowners insurance policy may include property insurance that protects more than the physical structure of your home. Homeowners insurance may help cover damage and theft impacting:
- Your home or dwelling, along with any structure connected to the dwelling.
- Construction materials and tools held near the dwelling that are intended for the construction, alteration, or repair of your home and attached structures.
- Detached structural additions on the premises of your home (for example, a detached garage, garden shed, office shed)
- Personal property within your home, along with belongings stored outside on the insured premises. This includes furniture, clothing, appliances, garden tools, and more.
The coverage may be limited to a percentage of the total dwelling coverage for structures and property other than those listed above. Depending on the policy, you may have the option to increase the policy’s set coverage amount with an endorsement.
Coverage for Condominiums or Co-Op Units
Condominium and co-op unit owners have different homeowners insurance coverage needs as their ownership is slightly different from that of a traditional single-family homeowner. Since they own only the unit and not the entire building, homeowners insurance may cover the portions they are responsible for under the condominium and co-op agreement, along with the belongings within the insured unit. It will not usually cover the entire building or shared spaces.
Renters may need coverage for their personal belongings and liability within the insured property, since they do not own the unit itself.
What Does Homeowners Insurance Not Cover?
Your homeowners insurance policy may not cover certain costs, damages, and conditions. Exclusions are specific circumstances detailed in your policy that are not covered by insurance. The number of exclusions in your coverage depends on the policy you choose. You may also need to meet certain policy conditions or responsibilities for the coverage to apply.
A standard homeowners insurance policy may not account for every person’s individual needs. An endorsement is a document that can add to, remove from, or change the terms and limitations of your original homeowners insurance policy. It is important to read and review your homeowners insurance policy thoroughly to understand its limitations and exclusions and how those may impact you. A standard homeowners insurance policy may not cover losses under the following circumstances:
Coverage Limitations
Your policy may have a set maximum coverage amount that will pay for a covered loss. If the cost of the loss is higher than the coverage limit, you may have to pay the remaining amount out of pocket.
Land
Homeowners insurance generally insures the dwelling, structures, and personal property on a piece of land. However, the land itself is often not covered in the policy.
Flooding
Flooding, sewer overflows, water damage to a basement, and waves are typically not included in homeowners insurance policies.
Business
Business activities are usually not covered under homeowners insurance, even if the business activity takes place inside your home. The coverage usually does not include liability and medical payments to other individuals for damage or injury.
Tenants
If you have tenants renting a portion of your home, your homeowners insurance may not cover any damages or injuries that they experience while living in your home.
Other Insurance
If damage or injury is covered under a different insurance policy as well as your homeowners policy, the homeowners insurance company may only be obligated to pay a proportional amount of the loss.
Theft Committed by Another Insured Individual
A homeowners insurance policy generally does not cover intentional acts of damage or loss. This may include theft committed by a person who lives in the home with you and is also insured under the policy.
More Than Two Family Dwellings
Standard homeowners insurance policies are generally limited to one- or two-family unit homes. Homeowners need a different policy that is specifically designed for homes with multiple dwelling units.
Cars
Personal property coverage generally excludes registered motor vehicles. Losses involving motor vehicles may also be excluded from the Personal Liability and Medical Payments to Others section of your homeowners insurance policy.
Vehicles designed for road use usually need to be insured under an auto policy. However, certain vehicles used to service the residence, such as lawn mowers or vehicles that assist a person with a disability, such as motorized wheelchairs, may be treated differently depending on the policy.
How Much Homeowners Insurance Do You Need?
You can insure your home on the basis of replacement costs or actual cash value. Most homeowners insurance policies usually adopt an actual cash value model unless coverage for replacement value is explicitly stated in the policy.
Replacement cost may help replace property that has incurred damage. It does not take depreciation into account but it does have a maximum coverage limit. On the other hand, actual cash value insurance may pay the value of the damaged property after depreciation is considered.
Ideally, your homeowners insurance policy should provide enough coverage to build or replace your home. This can help ensure that you receive compensation closer to the full replacement cost, up to the coverage limit, if your home suffers covered damage. You may also be able to protect your coverage from inflation with an inflation guard endorsement. This endorsement can increase your coverage amount in small increments each year, often based on a set index of home values in your area. As rebuilding costs or home values increase, the value of your insurance coverage may also increase.
Home Additions
Your coverage needs may change when you make additions and improvements to your home. It is important to get in touch with your insurance company to increase your coverage amount either before or immediately after construction commences. If you wait too long before increasing your coverage, you may run the risk of covering the cost of repairs yourself if the addition is damaged.
As part of the home addition process, you should also request copies of your contractors’ and subcontractors’ workers’ compensation insurance certificates. This can help confirm workers are appropriately covered if they are injured while working on your property. You may also want to review the liability limits of your homeowners insurance policy to make sure you have sufficient coverage during the project.
What Is Renters Insurance?
As a renter of a house or apartment, you are not the owner of the home or building. Your landlord’s insurance may protect the building, but it typically does not protect your belongings. Your renters insurance may cover the loss or damage of your personal possessions inside the unit you occupy. In the case of a fire or burglary, you may receive compensation for your losses depending on the policy you have.
Renters insurance may also help with liability or medical payments if a guest is injured in your home. Your landlord’s insurance may not cover their medical expenses.
Defining Renters Insurance
Renters insurance, or HO-4, is a type of homeowners insurance that does not cover the building. It may help cover personal possessions within the rented unit and provide some liability protection for people who rent a house or apartment.
Coverage Under Renters Insurance
Losses from “Named Perils” detailed in your policy may be covered under standard renters insurance. Your insurance company may help cover losses resulting from a “Named Peril,” which may include:
- Fire, lightning, or explosion
- Smoke
- Volcanic eruption
- Snow, ice, or sleet
- Freezing
- Vandalism
- Malicious mischief
- Theft
- Broken glass
- Falling objects
- Accidental water discharge or overflow
- Sudden and accidental tearing apart
- Artificially generated electrical charge
Losses resulting from causes not under “Named Perils” are not covered. Your renters insurance may also include a list of exclusions. Some of these exclusions may include:
- Earthquakes
- Flooding
- Power failure
- Neglect
- War
- Nuclear hazard
- Intentional acts
- Enforcement of building codes and similar laws
Flood Insurance
For renters in regions that commonly experience flooding, separate flood insurance policies may be purchased to help protect possessions from flood-related damage.
Understanding Replacement Cost and Actual Cash Value
You may see the terms replacement cost or actual cash value in quotes when reviewing your policy or filing a claim. It is important to understand the difference between the two.
Actual Cash Value
Actual cash value may provide compensation based on the value of the property at the time of theft or damage. In short, actual cash value accounts for depreciation and you may not receive enough money to replace the items entirely.
Replacement Cost
Replacement cost coverage may help pay the cost to replace the damaged or stolen property with a new kind or similar kind and quality, depending on your policy limit and terms.
Limitations
Renters insurance limits the amount of compensation that will be provided for a loss or damaged property. Compensation limits typically start at $15,000, with per-category limits for certain high-value items, such as jewelry, antiques, and computer equipment. Keep in mind when you raise your coverage amount, your premiums may also rise.
An important point to note is if your property’s value is higher than your insurance limit, you can benefit from appraising your property to prove its value. A supplementary rider may then be bought for full property coverage.
Liability Coverage
Liability coverage is included with renters insurance. Most renters insurance policies may help cover accidents and injuries caused by you or your property, whether the incident occurs inside or outside your home. Liability coverage may also help pay for legal defense costs under liability coverage if a covered claim goes to court. Automobile accidents are not covered.
Additional Living Expenses
“Additional living expenses” may be included in your renters insurance if your house or apartment is unlivable due to a named peril. These expenses may help cover the cost of living arrangements comparable to your home while repairs are made. The policy may have a coverage limit for additional living expenses, as well as a time limit for how long the coverage applies.
How Much Does Renters Insurance Cost?
There are many factors, including the area you live in, your building, your deductible, and your coverage that impact the cost of renters insurance. Your agent can help review these factors and compare options based on your coverage needs.
In general, choosing higher coverage limits or additional protection may increase your premium, but it can give you more support if you experience a covered loss.
Open and Named Perils
A peril in homeowners insurance refers to a risk or event that may cause damage to your home or belongings, such as theft, fire, and storm damage. Homeowners insurance policies may cover perils in different ways, either on an open perils or a named perils basis, which helps determine what losses may be covered.
Open Perils
Open perils offer broader protection for the risk of direct physical loss to your home and related structures. Under this type of policy, damaging events are covered unless they fall under a specific exclusion.
Named Perils
Named perils cover only the specific risks listed in your policy. If the damage is caused by an event that is not listed in your policy, the loss may not be covered.
Additional Coverage For Homeowners and Renters
Here are some common coverage scenarios for homeowners and renters with homeowners insurance.
Loss of Use
Loss of use coverage may help pay for temporary housing, relocation expenses, food, and other living necessities if your home becomes unlivable from damage covered by your policy. The coverage may apply until repairs are complete or, in some cases, until permanent relocation.
Liability
The liability coverage of your homeowners insurance policy may help pay for settlements, judgments, or defense costs, depending on the policy, if you unintentionally cause injury to another person or damage someone else's property.
Medical Payments to Others
The coverage may help cover minor expenses related to an injury that a guest or non-resident may have sustained while on your property or in areas near your property, such as a sidewalk.
- An example of negligence would be the failure to repair a broken railing that later causes someone to get injured.
- An example of intentional misconduct would be cutting down a tree located on your neighbor's property to improve your home's view.
If the affected person files a lawsuit against you, liability coverage may help pay for legal defense costs, depending on your policy.
This coverage may also apply to certain situations, where you, a household employee, or a pet causes an injury to someone else while away from your home.
Coverage For Condos, Co-Ops, And Renters
Homeowners insurance coverage can differ for owners of condos, co-ops, and renters compared to traditional single-family homeowners. Condo and co-op owners usually deal with two layers of insurance – a master policy and an individual policy. A master policy usually covers common areas and shared building structures, such as lobbies and elevators, while the individual policy is what the condo owner buys separately, often called a HO-6 policy. It is important to review your master policy thoroughly to determine what is and what is not covered. This helps in buying an individual policy for the remaining coverage gaps.
The Master Policy
A master policy is typically held by the condo or co-op property to cover common areas used by all residents or unit owners, such as stairways, elevators, basements, lobbies, and/or the roof. This policy protects the owner from physical damage to the property and liability in case of injury. A master policy may help cover parts of the units as per their original state, including the built-in fixtures that are original to the unit.
Individual Policy
A Form HO-6 is generally used for your personal condo or co-op insurance. The coverage for condo and co-op owners is slightly different from that of a traditional single-family homeowners insurance but with a liability coverage that is comparable with traditional homeowners insurance. Any personal responsibility, such as personal property, additions, improvements, private balconies, private entryways, private garages, may be covered by your HO-6 policy.
What is Not Covered for Condos, Co-Op Owners?
Any damage caused to possessions by perils named under exclusions of your HO-6 policy may not be covered for property damage. A few examples of these exclusions are earthquakes, flooding, power failures, neglect, war, nuclear hazards, intentional acts, or enforcement of building codes.
Loss Assessment
Your personal HO-6 Form policy may include loss assessment coverage, which can help pay your share of certain costs assessed by the condo association or co-op board after a shared property loss. Loss assessment coverage applies in situations where the damage exceeds the master policy limit, a large deductible is passed on to unit owners, or the association divides the cost of a covered loss among members. It may also apply in certain liability situations, such as when a guest is injured in a common area and the association's liability limits are exceeded.
Loss Coverage Under Master and Personal Policy
Losses as a condo or co-op owner are covered differently than a traditional single-family home. If both the master policy and the personal HO-6 policy apply to the same loss, your homeowners insurance policy may only compensate for the remaining balance after the master policy has paid up to its limit.
Loss Settlement
The amount you may be entitled to receive after a loss is mentioned in your policy guidelines and limits. Your policy may help you recover the actual repair or replacement cost of property like fixtures, balconies, improvements, and similar items completed within a reasonable time frame. If the damage is not repaired or replaced, you may only receive the actual cash value of the damaged property, up to the repair or replacement cost.
Coverage limits detailed in your policy apply to loss settlement. You may also need to meet certain policy conditions before the loss and complete required steps after the loss to qualify for payment. It is important to review and carefully understand your policy.
Why Choose John Galt Insurance For Your Homeowners Insurance?
At John Galt Insurance, we understand that every homeowner’s coverage needs are different. We are an independent insurance agency based in Fort Lauderdale. Through our years of experience in the industry, we bring local knowledge, personalized guidance, and access to a wide network of insurance companies to help find the right policy for your home and your family.
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