Your homeowner’s insurance policy is designed cover you for losses and damages to an individual residence, along with furnishings and other assets of the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property. home. However, not all policies are the same, and coverages can vary from carrier to carrier. Knowing what your policy says about specific circumstances and risks, and what to expect in case of a loss, can help you make an informed decision about your coverage.
In the language of the homeowner’s insurance industry, “perils” are the circumstances which can cause a loss. HO3 policies can either cover damage caused by Named Perils only, which means that only circumstances specifically outlined in the policy are covered, or All Risk, meaning all circumstances are covered except for those specifically excluded in the policy.
For most Floridians, a standard (HO3) homeowners policy covers a range of Named Perils which typically include:
· Weather events: lightning, windstorms, hailstorms, and named storms or hurricanes
· Other events: explosions, falling objects, fire, smoke, or volcanic eruption
· Acts committed by others: theft, vandalism, malicious mischief, riot, or civil commotion
· Damage caused by vehicles: cars, aircraft, unmanned drones
Unless specifically named as covered, losses from all other situations are assumed to be not covered.
An All-Risk policy will usually have higher premiums, but can cover an even wider range of perils, including:
· Damages typically not covered without an endorsement or rider: flood, sewer backup, sump pump failure, or personal property damage caused by wind-driven rain
· Situations related to construction: building ordinance or law stipulations for repair or rebuilding after a loss, or theft of building materials and supplies
· Changes to terrain: earth movement, earthquakes, or sinkholes
· Losses due to off-premises utility service interruption: refrigerated items such as food or other perishables
An alternative to an expensive All-Risk policy is to add a comprehensive rider to a Named Peril policy. Many Companies offers optional endorsements to provide additional coverage.
There are two types of HO3 policy deductibles – one for hurricanes, and another for All Other Perils. Deductibles for All Other Perils can vary depending on a wide range of factors but can usually be lowered by increasing the monthly premium. Conversely, premiums can often be lowered by accepting a higher AOP deductible.
Hurricane deductibles are typically set at 2% of the insured value of the home. A home with an insured value of $350,000 would carry a $7,000 deductible. Many Companies offers flat rate $500 and $1,000 hurricane deductibles as an option for Florida homeowners, reducing their risk of a high out-of-pocket cost in case of a catastrophic weather event.
Ask your agent at Lehn & Vogt Insurance about what perils are covered under your HO3 policy, what endorsements are available, and how to adjust your deductibles and premiums to find the right balance of coverage and cost for your family.
Lehn & Vogt Insurance
2980 S McCall Rd E
Englewood, FL 34223
Providing Homeowners Insurance throughout the State of Florida