In Florida, home insurance is a contract between you and the insurance company. You should review the terms of these contracts carefully because the courts strictly construe them in the event of a breach by either side. Some facets of the agreement may be unclear. For example, you may have essential or even valuable documents whose value is far higher than “the weight of paper and costs of facsimile” spoken of in the policy. Without an express provision spelling out your coverage, you might find yourself out of luck if anything happens.
The extent of property coverage is written broadly to the benefit of homeowners. The scope of liability coverage is written to be equitable, especially in cases of medical care. However, a Public Adjuster recommend maintaining a digital archive of receipts for all purchases in the event of a loss. All of your coverage likely has a small deductible and a cap limit on coverage. Depending on the policy, you may receive emergency accommodations and other premium services.
What is Specifically Covered by Homeowners Insurance
In Miami, the majority of policies will cover damages that fall under what is termed as the 16 common perils: explosions, the rare riot from civil unrest, vandalism and unprovoked mischief, theft, lightning or fire, windstorm or hail, volcanism, smoke, aircraft, vehicles, falling objects, weight of ice, sleet or snow; accidental water overflows from various plumbing, HVAC, and fire protection systems; sudden and unintentional cracking, tearing apart, bulging or burning of these systems and steam systems; breaking of pipe and other systems; and damages from artificially generated electrical currents.
Structure of the Home
Your insurance covers the foundation of a home typically. This is everything that could hypothetically be transferred to a new foundation (walls, flooring, roof, doors, etc.). Another language covers the foundation of the home itself and the variety of ecological elements of sustaining a safe foundation. Additional coverage is generally provided for garages, gazebos, and sheds, even if they are detached from the home.
Personal Belongings
The property coverage provisions are multifaceted. Homeowners have the incredible flexibility to makes claims on personal property, no matter where in the world it may be located, just because of owning the property. Coverage for those who live on the property is limited to what is actually on the property. For guests, coverage is limited to what they possess on the property during their stay. For more specifics, speak with your Public Adjusters.
Personal belongings include the full range of appliances, furniture, clothing, jewelry, sports equipment, watercraft, firearms, silverware, and much more. Owners should inquire about special coverage for expensive jewelry, artwork, and other items that may be difficult to appraise. Trees, gardens, and shrubbery, are also covered in the event of any of the 16 perils; except in the case of disease or wind damage. And as mentioned earlier, it is a great idea to maintain a digital archive of your possessions. Storing such an inventory list of receipts, videos, and photos, in a cloud data storage account is optimal.
Liability
The liability coverage provisions of the policy protect the policyholder and their cohabitating family members (including pets) from civil liability in cases of bodily injury or property damage, where they are culpable. Coverage includes the costs of litigation and damages (within the express cap limit). Liability coverage travels with the policyholder and their cohabitating family members, globally. It is limited to torts that occur outside of the home, where the covered signatories and family are the accidental trespassers.
This means that any negligent conduct that incurs injury against a third party. Ultimately this careless action falls upon the shoulders of the insurance company. Naturally, the insured has to weigh the costs associated with the premium, and potential rate hikes if they are determined to be a higher risk for whatever reason. It thus might be cheaper to pay out of pocket for a white carpet stained by a glass of wine spilled at a friend’s home. You have to consider the insurance company paying a reduced rate in such a situation because of comparative negligence. However, if your dog bites someone at your home, and they have significant medical bills that you cannot readily cover, this would be a good time to rely on your insurance.
You may also benefit from something called no-fault medical coverage, that is, however, if an injury occurred at your home. No-fault medical coverage avoids the costly litigation required to debate the nuances of who is responsible for an injury. The injured party submits the medical bills directly to the homeowner’s insurance policy without having to file a liability claim. Of course, like other forms of liability coverage, this type of claim does not cover injuries to the signatories and their cohabitating family members. In such a case, the non-covered parties must rely on separate health or pet insurance.
Additional Living Expenses (ALE)
As mentioned earlier, there are certain situations where your insurance company may provide emergency services. One of the primary reasons is to help families who have lost their home (either permanently or temporarily). Additional Living Expenses (ALE) typically limits the duration and costs associated with paying for: hotels, restaurants, and other extraordinary expenses that you do not usually incur. Also, ALE typically pays for the lost income, only if it results from damage to a rental unit (as anticipated by lease or affidavit of prospective renewal).
Miscellaneous Protections
Many insurance policies offer a greater variety of additional protections, some with a less universal appeal. These include, but are not limited to debris removal following any of the 16 perils, family grave markers or mausoleums, identity fraud and unauthorized credit card charges, green reimbursement, and loss assessment. Most of these are pretty obvious on their face. However, “green reimbursement” is a novel concept that allows policyholders to rebuild with green materials and to upgrade buildings with energy efficient replacements. Loss assessments are often necessary for calculating the extent of damage before reimbursement is made. It is beneficial in a residential claim, due to the potential for high fees.
What is Not Expressly Covered by Home Insurance
You will need to buy special premiums to cover earthquakes and floods if you live in areas prone to these disasters. Policies do not cover normal wear and tear, fungi, corrosion, animals and pests, negligence on your part in failing to make repairs, nuclear hazards, power failures, wars and other acts by the government, among other things.
References
Insurance Coverage Information
CPA Journal
