Insurance policies are often required. Some may even call them a necessary evil. Regardless, Hurricane Ian has brought some crucial lessons regarding property insurance to the forefront.
The Amount of Coverage Your Policy Provides is Essential
Coverage A on your insurance policy is the coverage you have for your dwelling (your home). This would include the walls, the roof, flooring, etc. The critical part to note is that this is the amount of coverage to rebuild your home in the event of a total loss; it must be in today’s dollars. Given the amount of inflation we have experienced and continue to experience, this may be something you should review to ensure you have the level of coverage you need in the event of a total loss.
Coverage C on your insurance policy is your coverage for your personal property, furniture, electronics, clothing, appliances, etc. Again, this is a personal decision you can discuss with your insurance agent to determine the level of protection that works for you and your family.
Reimbursement For Property Damage
Replacement cost and actual cash value refer to how your homeowner’s insurance policy reimburses you for property damage after a covered loss. While both types of coverage help with the costs of rebuilding your home or replacing damaged items after a covered loss, actual cash value policies are based on the item’s depreciated value, while replacement cost coverage does not account for depreciation. Policies that provide replacement costs are more expensive in terms of your cost, as they provide you and your family with more protection.
Losses from floods, including rising water and storm surge, are not a covered peril (cause of loss) under your homeowner’s policy. It was highlighted after Hurricane Ian that only 18% of the households in Florida had a flood policy, despite Florida’s unique geographic exposure.
Floods are costly, with FEMA estimating that one inch of water in the average home can cause more than $25,000 in damage to the average one-story property. Floods are not covered under your homeowners, condo, or renters policy. Simply put, you need a separate policy either through the National Flood Insurance Program (NFIP) or a private flood provider.
The maximum coverage available through NFIP is $250,000 for dwelling and $100,000 for personal contents. Even if you cannot afford the maximum coverage, consider having some coverage to rebuild and help your family recover from the loss.
There is additional flood coverage available through private flood providers. If you are interested in purchasing additional coverage, over and above what is offered by NFIP, we can assist with obtaining this additional coverage.
Pineapple Insurance is Here to Guide You
Look at your insurance differently – shift the conversation to be less about costs and more about protection. If you would like to enhance your coverage, but cannot make all the changes at once, one of our agents can work with you to build a multi-year plan to help you address your insurance coverage. Please call us at 813-438-7240 or visit us at Pineappleinsure with questions or to help you develop your plan.