Reading and Understanding Your Florida Homeowners Policy

Your Florida homeowners insurance policy is a big document. It can be confusing, but it’s important to know what it covers and what it doesn’t. Florida homes face strong storms, so read your policy carefully. This guide will help you spot key parts of your insurance, especially roof and water damage coverages. We’ll use simple language and real references (like Florida’s insurance office) to explain things.

Covered Perils and Common Exclusions

A homeowners policy pays to repair damage from certain covered perils. Covered perils usually include things like fire, lightning, wind or hail damage, and vandalism. For example, if a hurricane or tornado blows shingles off your roof or a tree falls on your house, that damage is generally covered. However, policies also list things not covered — called exclusions.

Common exclusions are:

Flooding: Water that rises from outside (rain flooding, tidal surge, swamp water) is not covered by your standard policy myfloridacfo.com. Florida law defines “flood” as rising water or runoff, so if your home floods, you need a separate flood insurance policy (often through the NFIP or a private flood policy).
Normal wear and tear: Damage from gradual wear, rust, decay or deterioration over time is excluded. For example, an old roof that leaks because it’s worn out usually won’t be paid by insurance krapflegal.com.
Poor maintenance: If a leak happens because gutters were clogged or shingles were loose and unrepaired for years, the insurer can deny the claim.
Pests and mold: Damage from termites, rodents, or mold and fungus (often caused by unnoticed long-term water leaks) is generally excluded krapflegal.com.
Earth events: Earthquakes, landslides, sinkholes, and similar events are usually excluded or require special endorsements (extra coverage).

What to look for: In your policy’s exclusions section, check for flood, mold, wear/tear, and pests. Also note if there’s a sewer backup exclusion — many policies exclude water damage from sewer lines or drains unless you buy an extra rider. If you see these, know that you’d need separate coverage or an endorsement to handle those losses.

Roof Coverage and Common Roof Exclusions

Your roof is part of your home’s dwelling coverage. This means if a covered event (like wind, hail, fire, etc.) damages the roof, your policy should pay to repair or replace the roof — up to your policy limits. Florida homes especially need strong roofs, so make sure you understand your roof coverage.

However, there are limits:

Roof Age and Condition: Insurance pays based on the roof’s condition. In Florida, older roofs often get less paid due to depreciation. If your roof is very old or in poor shape, the company may only pay actual cash value (ACV), which subtracts for age (see below). Florida law now protects homeowners: insurers cannot refuse or drop coverage just because a roof is under 15 years old floridapace.gov. For roofs over 15 years, the insurer can require an inspection and possibly ask for repairs or replacement if the roof isn’t in good shape floridapace.gov.
“Sudden and Accidental” Damage: Homeowner policies cover roof damage from sudden events (windstorms, hail, lightning). For example, if a tree branch crashes through the roof in a storm, that loss is covered. Even water leaking through that storm hole is covered, because it was caused by a covered peril myfloridacfo.com. Specifically, Florida’s definition of “hurricane coverage” includes interior water damage if the windstorm first damages the roof or structure, letting rain or hail in myfloridacfo.com.
Exclusions for Roof Claims: Insurance does not cover roof damage from gradual problems krapflegal.com. Common roof exclusions include: normal roof wear (shingles aging out), leaks from holes that were already there, and missing or worn underlayment. If the roof was neglected (old and unrepaired), a claim for its failure will likely be denied. Insurance also excludes damage from insects, rodents, birds, and molds growing in the roof over time krapflegal.com.

What to look for in your policy: Check if your policy has any special roof conditions or endorsements. Some policies have a “roof repair limit” or require you to maintain a newer roof. Look at the deductible language for roof losses (some policies may charge a separate deductible for roof/hail).

Example: If your roof is 20 years old, an adjuster will consider depreciation. Under ACV, you might only get three years of value (if the roof life was 23 years, you used 20 of 23 years, you’d be paid for the remaining 3 years). With replacement cost coverage (see below), you’d get enough to put on a new roof.

Florida Roof Age Rule: Thanks to Florida law (SB 2D, 2022), you have rights about roof age. The insurer can’t automatically deny or cancel your policy just because the roof is under 15 years old floridapace.gov. If your roof is over 15 years old, you can get it inspected and certified for at least 5 more years of life instead of being forced to replace it immediately floridapace.gov. This law helps homeowners keep coverage if their roof is simply aging but still sound.

Windstorm/Hurricane Coverage and Deductibles

Florida policies usually include windstorm and hurricane coverage, since storms are common here. Sometimes, however, an insurer can offer a policy without wind coverage — in which case you’d need a separate wind-only policy (often through Citizens or the private market) myfloridacfo.com. Check your declarations page (cover sheet) for “wind” or “hurricane” coverage. If it’s excluded, that’s a big gap.

Hurricane Deductibles: Florida laws require most insurers to offer a hurricane deductible in addition to your regular deductible myfloridacfo.com. A hurricane deductible is usually a percentage of your home’s insured value (commonly 2%, 5%, or 10%) myfloridacfo.com. For example, on a $300,000 policy with a 2% hurricane deductible, you would owe $6,000 before insurance pays for hurricane damage. This is often much higher than a normal deductible (like $500 or $1,000) and applies only to named storm losses.

Only one applies: Importantly, if hurricane coverage and deductible apply, that deductible replaces the regular one myfloridacfo.com. You don’t pay two deductibles. Florida law says: “When a hurricane deductible is applied, no other deductible under the policy may be applied” myfloridacfo.com.
Annual reset: Hurricane deductibles are usually applied on a yearly basis myfloridacfo.com. This means if one hurricane claim used up the deductible, and another hurricane strikes later that year, you typically use whatever hurricane deductible remains (or your normal deductible, whichever is higher) for the second claim myfloridacfo.com.

What to check: Look at your policy’s deductible section. It should list any special hurricane or wind deductible. Confirm the percentage or amount. Also note the standard deductible for other losses (often $500, $1,000 or a percentage). Knowing these numbers helps you estimate out-of-pocket costs for claims.

Named Perils vs. All-Risk Coverage

Home insurance policies can be written two ways:

All-Risk (Open Perils): This means your home (dwelling) and sometimes other parts of the policy cover all causes of damage except what is specifically excluded progressive.com. Most Florida HO-3 policies for houses work this way for the structure. For example, such a policy covers your roof for any damage that is not on an exclusion list. Common exclusions (as above) still apply, but otherwise covered.
Named Perils: Other parts of your policy (often personal property or condo coverage) might be “named peril” only. This means only the events listed by name in the policy are covered progressive.com. For instance, jewelry might only be covered if stolen or lost due to a listed cause. If a peril isn’t named, it’s not covered.

What to check: Look at the top of each coverage section. It may say “Coverage A — Dwelling (Special Form)” or “Coverage C — Personal Property (Broad Form, named perils)”. If it says “Special Form” or “All Risk” for the dwelling, that means your home is on open peril coverage (everything except exclusions). If it says “Broad” or “Basic” form for personal belongings, those items are likely named-peril. You should read which perils are named (often fire, theft, wind/hail, etc.). If your home is all-risk, good — but still read the exclusion list carefully. If it’s named-peril, make sure key events (like wind/hail or fire) are indeed listed.

Replacement Cost vs. Actual Cash Value

When your home or roof is damaged, your policy will pay either actual cash value (ACV) or replacement cost value (RCV). These terms are critical:

Actual Cash Value (ACV): This pays for the item’s current value, taking off depreciation. In simple terms, older things (like an old roof or furniture) get less money. Your insurer pays what the damaged item is worth right before the loss. For example, a 15-year-old roof might be valued much lower than a brand-new roof. ACV is basically replacement cost minus age/wear.
Replacement Cost Value (RCV): This pays the cost to repair or replace with new materials at today’s prices, without deducting for age. In other words, you get enough to rebuild or replace with similar new items. This usually requires higher insurance limits or a special endorsement.

Florida’s insurance site explains it clearly: “Actual cash value refers to a policy that covers items for their value at the time they are lost or stolen. Replacement cost refers to the cost to replace an item, regardless of how old it may be” myfloridacfo.com.

What this means for your roof: If you have ACV coverage on your roof, expect the payout to be smaller. The company will subtract depreciation (based on the roof’s age and condition). If you have RCV (replacement cost) coverage, they would pay the full cost to put on a new roof (up to your limit). Many standard home policies cover the dwelling structure (including roof) on a replacement cost basis, but verify this. Sometimes the roof itself is still subject to ACV, especially if it’s older than 20 years (Florida companies often do this). Ask your agent: if your roof is 10+ years old, does your policy treat it as ACV? Having RCV can save you thousands in a claim.

Flood Insurance and Other Gaps

Remember: floods are not covered. Heavy rain, storm surge, or overflowing lakes are considered flooding and are excluded from homeowners policies myfloridacfo.com. In Florida, even if you’re not in a high-risk zone, flooding can happen. The state urges homeowners to buy separate flood insurance myfloridacfo.com. Without it, flood damage is out of pocket.

Other common gaps:

Sewer Back-up: Water coming in from drains or sewers usually isn’t covered unless you buy a sewer backup endorsement. If you have a basement or low drains, ask about this rider.
Sinkhole: Standard policies in Florida exclude sinkhole collapse (ground cave-ins). If you need it, get a sinkhole coverage endorsement.
Earthquakes: Not included. In Florida it’s rare, but still separate.
Loss of Use: Most policies do cover additional living expenses (hotel, food) if your home is uninhabitable after a covered loss, but check the limits.

What to do: Make a list of events you’re concerned about (hurricane flooding, pool accidents, etc.) and see if your policy mentions them. If something seems missing, talk to your agent. Many common risks (like flood or sinkhole) are well-known gaps in Florida policies.

Make Sure You’re Prepared — Get a Roof Inspection!

Insurance is one part of staying safe. The other part is keeping your roof in good shape. If you’re unsure about what your policy covers or how your roof will hold up in a storm, Orange Contracting and Roofing can help. Our experts will inspect your roof, point out any weak spots, and explain how they relate to your insurance. We can also work with your insurance adjuster after a storm, if needed.

Call Orange Contracting and Roofing today at (407) 205-2676, visit myorangecontracting.com or email [email protected] to schedule a free roof inspection. Don’t wait for a big storm to find gaps in your coverage or problems on your roof. Stay protected — get Orange to check your roof and help you understand your insurance now.

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.