Understanding Your Florida Homeowners’ Insurance: Coverages Explained

A homeowners’ policy in Florida combines various types of property and liability coverage that a homeowner typically needs into one convenient package. Understanding the key coverages included in your policy will help you better understand what is included in your policy and identify areas that may need supplemental coverage.

6 Essential Coverages in One Policy*

• Coverage A - Dwelling Coverage:
• Coverage B - Other Structures:
• Coverage C – Personal Property:
• Coverage D – Loss of Use: This is also known as Additional Living Expense and Rental Value.
• Coverage E – Personal Liability Coverage:
• Coverage F – Medical Payments:

Coverage A - Dwelling Coverage

For Florida homeowners, dwelling coverage is a crucial part of their policy. This coverage safeguards the structure of your home in the event of a covered loss.

Your policy will cover you up to the limits of liability stated in your policy. This is typically the cost to rebuild your home, but it's essential to confirm this with your agent. Understanding your limits of liability is vital, especially in the case of a total loss, such as a fire.

Note: Many homeowners policies now exclude Hurricane/Named Storm Coverage.

Coverage B - Other Structures

If your property includes additional structures, Coverage B offers protection up to 10% of the limits of liability under Coverage A.

Other structures may include:

• Sheds
• Fences
• Detached garages

Coverage C - Personal Property

While Coverage A protects the structure of your home, Coverage C covers your personal belongings. Typically, personal property is covered up to 50% of the coverage you have under Coverage A at no additional cost. If your belongings exceed this amount, additional coverage can be purchased. This can cover either actual cash value or replacement cost, depending on your policy.

Personal property includes:

• Household items
• Clothing and personal effects
• Furniture
• Other personal items

Coverage D - Loss of Use

If your home becomes uninhabitable due to a covered loss, Coverage D helps cover expenses like hotel stays. This coverage can range from 10% to 30% of the limits of liability from Coverage A, covering additional expenses incurred from being unable to live in your home.

Coverage E - Personal Liability

This coverage pays for all sums you become legally liable for due to bodily injuries or property damage to a third party. However, it does not cover personal injury claims like libel or slander.

Coverage F - Medical Payments

This coverage pays for medical expenses incurred within three years of an accident on your property or due to your actions, those of a pet, or another resident. It covers medical expenses regardless of legal responsibility but does not cover your medical expenses or those of household members.

Some policies have a maximum limit of liability for all injured persons, which may differ from the limits of liability discussed in Coverage A.

*Note: Not all coverages are included in every homeowners policy. For example, an HO4 or renter’s policy does not include Coverage A or B. Always discuss the details of your policy with your insurance agent.