2005 was a record year for hurricanes in the Atlantic Ocean and Gulf of Mexico. Weather reporters had to use the Greek Alphabet to name hurricanes and tropical storms headed toward the United States. Some of these hurricanes, such as Dennis, Katrina, and Wilma, do a lot of damage on both the Atlantic and Gulf of Mexico sides of Florida.
Because Florida is right in the middle of hurricane alley for almost half the year, it is nearly impossible for most homeowners to find affordable Homeowners insurance coverage, and it is just as hard for insurance companies to keep up with and pay back these Homeowners insurance policies.
During the 1980s and 1990s, many Florida homes were insured by the Residential Joint Underwriting Association, which was run by the state. Large private Homeowners insurance companies like Allstate have only recently started selling policies in parts of Florida where hurricanes are more likely to happen, like along the coast and in the south.
No matter if you get your homeowners insurance through the state-run RJU association or a private company, it will be very expensive if you live near the coast in Florida. Because of all the extra coverage needed for hurricane season, the same house on the coast of Florida may cost three times as much to insure as it would in Ohio.
Most basic insurance policies don't cover hurricane damage because they only cover certain natural disasters that could happen anywhere in the country. Because of this, people who live in Florida have to buy extra hurricane insurance to make sure their home is covered if it gets hit by one of these storms.
In 2005, Florida passed a law that requires insurance policies to be written in plain language. This way, homeowners can easily understand the terms of their policy without getting confused by all the jargon. Before this, many Florida homeowners had to take care of themselves or ask for help from the federal government or the state. This was because many of them didn't know that even hurricane insurance doesn't always cover flood damage.
Of course, it can be hard to tell the difference, and this is where many homeowners got stuck. Even if flooding is caused by a storm surge of rising water from the hurricane, this is not covered by the hurricane because it is not damage caused by the high winds or rain of the storm, but by the ocean waters rising.
If a Florida homeowner lives in an area that could be considered a storm surge area, usually up to 25 feet from the ocean, they should think about adding flood insurance as a separate clause to their Homeowners insurance. Make sure to talk to your insurance agent about what kinds of water damage are covered by your hurricane insurance and your flood insurance. This will help you make sure you are covered from every angle if a hurricane hits.
Lawmakers are working on a bill that will limit the amount of surcharges that homeowners in Florida can be charged. This will help stop price gouging because of where people live in Florida. If the bill passes, it will help bring private and public insurance rates for Floridians closer together, making it easier for them to get insurance even though they live in a very high-risk area.
If you just moved to Florida between June and November, which is hurricane season, you may not be able to get hurricane insurance for the first season because many insurance companies don't sell new hurricane insurance policies until after hurricane season is over.
This is to stop people from getting insurance just for a short time and then getting rid of it when hurricane season is over. Before you close on the house, you might want to add the current Homeowners policy to the house contract to make sure you are covered for the first season. If this isn't possible, you might be able to get hurricane insurance, but it might be expensive.
