Florida Home Insurance Changes: ACV Roof and Water Damage Limits
Florida homeowners insurance is changing. Two big limits are appearing in policies. One change affects how roof claims are paid. The other affects water leaks and damage claims. We will explain these in simple terms and talk about what they mean for you, and what you can do.
Many Florida homes face new insurance rules. For example, some companies now pay only the roof’s Actual Cash Value instead of the full cost of a brand-new roof. This means the older your roof is, the less you get when it’s damaged. Insurers often add a “roof schedule endorsement,” which treats the roof like an ACV item. If your roof is, say, 15 years old, the policy might only pay a fraction of replacement cost. In the next section we’ll look at roof coverage changes in more detail.
Roof Coverage Changes
Insurance covers damaged property either by Replacement Cost or Actual Cash Value (ACV). Replacement Cost pays to fix or replace with new materials. ACV pays only what the item is worth now (taking off for age and wear). For example, a 15-year-old roof hit by a hurricane would be worth less than a new roof. Under ACV, the insurer pays based on its current value. Under Replacement Cost, the insurer would pay to put on a new roof of similar quality.
When storms hit, an old roof may only fetch a reduced claim check. If your roof has a schedule endorsement, your payout might be “a fraction of the full replacement cost”. The photo shows storm damage to a Florida roof. Because of the endorsement, the insurer might call that older roof mostly used up, and pay only part of what a brand-new roof costs. This can leave homeowners “footing thousands of dollars out-of-pocket” for roof repairs they assumed were covered.
It’s important to know which you have. Read your policy or ask your agent: does it cover roof damage on a replacement-cost basis, or only ACV? A good agent should explain this. If you have ACV coverage or a roof schedule, consider replacing an aging roof before it fails. That way the value at claim time will be closer to a new roof.
Limited Water Damage Coverage
Florida’s older homes often have old pipes (like cast iron) that corrode and leak over time. Insurers have reacted by adding limits on water damage coverage. Many policies now include a water damage exclusion or a limited water damage endorsement. An exclusion means your policy won’t pay for leaks or plumbing failures at all. A limited water damage endorsement is an add-on you can buy (or is included) that provides only a small amount of coverage for sudden leaks.
A typical limited water damage endorsement pays up to $10,000 for covered leaks. That means if a dishwasher or pipe bursts and causes water damage, your insurer will pay up to $10k. Any costs above that limit come out of your own pocket. For example, if a burst pipe causes $15,000 of damage, and you have a $10,000 limit, you would pay the extra $5,000 yourself.
A dripping faucet is a small leak that could cause big damage. Most Florida homeowners policies now limit coverage for sudden water leaks. If your policy has a $10,000 cap for leaks, you’ll get at most that much from insurance. Many insurers follow rules set by Citizens (the state-run insurer) that cap non-hurricane water damage at $10k for older homes. Even some private companies are now offering only $10k coverage for homes over about 40 years old. (One insurer recently agreed to pay up to $10,000 for homes older than 40 years.) In short, if you have an old home, check if water leaks are limited on your policy.
These changes mean water leaks can be costly. Remember that the biggest part of a water damage claim is often tearing out walls or floors to fix the pipes. Many policies with a $10,000 limit don’t fully cover tear-out costs once the cap is hit. You might end up paying thousands to fix a leak and remove damaged drywall, tile, or flooring.
What This Means for You
Because of these new rules, homeowners need to read their policies carefully. If you have an older roof, know that “used-up” roofs may only be insured for part of replacement value. If you have an older house, know that plumbing leaks might only be covered up to a limit (often $10,000). These limitations put more risk on you as the homeowner.
To stay protected:
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Ask your agent about roof coverage. Find out if your roof is under a schedule endorsement or ACV. If so, plan accordingly. A new roof now might save big expenses later.
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Check your water coverage. Ask: “Do I have a water damage exclusion or a $10k cap on leaks?” If water leaks are limited, consider buying extra water-backup or plumbing coverage if your policy offers it.
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Maintain your home. Replace old plumbing, and keep your roof in good shape. Fix small leaks right away. Even a minor leak can become an expensive claim if not addressed.
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Compare insurance options. Some newer insurers might offer better coverage than others. Look for companies that still cover roof replacement and provide adequate water damage limits. Always read the fine print before switching.
Staying on top of these changes is important. Insurance costs are high in Florida right now, and many companies use these new limits to keep premiums down. Don’t assume your coverage is the same as it was a few years ago. Talk to your insurance agent, read your policy documents, and plan ahead.
What You Can Do
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Review Your Policy Now. Before the next storm season, read your insurance declarations. See if your roof is covered at replacement cost or only ACV. Check if water damage is limited or excluded. Knowing this ahead of time helps you prepare.
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Improve Your Home. If your roof is old and not fully covered, consider replacing it at least in part. Upgrading old plumbing (like cast-iron to PVC) can prevent leaks. These investments can save money when you file a claim.
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Ask About Endorsements. Some insurers allow you to buy back full water damage coverage (removing the $10k cap) for a higher premium. Even a small increase in your premium might be worth it to avoid a big out-of-pocket repair after a leak.
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Work with Your Agent. A good insurance agent will explain these limits and help you find the best coverage. If you’re unsure, get a second opinion or contact the Florida Department of Financial Services for guidance on standard policy terms.
By understanding these coverage changes and taking action, you can avoid unpleasant surprises later. Knowledge is your best protection.
For trusted help with roof and water damage repairs in Florida, turn to Orange Contracting & Roofing. We know how upsetting it is when insurance doesn’t cover what you thought. Our friendly team can inspect your roof and home for damage, and fix any leaks or roof problems before they get worse. We work with homeowners and realtors across Florida, so if you need a contractor who understands both roofing and insurance issues, give us a call.
Call Orange Contracting and Roofing at 407-205-2676 or email [email protected]
The company’s office is located at 105 Candace Dr., Suite 129, Maitland, FL 32751. Taking this step can help ensure a home is well-prepared to face the demands of the Central Florida climate for years to come.
Stay safe this hurricane season, and make sure your coverage is what you expect! We’re here to help when you need us.
Sources: Information in this article is based on recent Florida insurance updates and expert insights. All details should be verified with your agent, as policies may vary.