Note: This pamphlet is available online only.
Table of Contents
When you purchase your home, you should consider protecting your asset with property insurance. If you have a mortgage on your property, you will be required to purchase insurance to protect your mortgage company’s security interest. Also, if you live in a condominium or are part of a homeowners’ association, the controlling documents may require you to maintain property insurance.
This online pamphlet will give you a brief overview of the types of coverage your insurance policy may provide, and your rights and obligations under your insurance policy.
Below are several types of coverages that your homeowners’ policy may provide to you. You can confirm how much coverage you have by looking at your policy’s “Declaration” page, which should be located at the beginning of your policy.
Coverage A – Dwelling – Covers physical damage to your home.
Coverage B – Other Structures – Covers damage to other structures or buildings, such as a detached garage, shed, or fence.
Coverage C – Contents/Personal Property – Covers damage to, or loss of personal property. Personal property includes household contents and other personal belongings used, owned or worn by you or your family.
Coverage D – Additional Living Expenses – Covers additional living expenses when incurred. This means that the policy covers the necessary living expenses up to the stated limit, incurred by the insured to continue, as nearly as possible, the normal standard of living when the home cannot be occupied due to a covered loss.
A deductible is a specified amount of money that you must pay before an insurance company will pay a claim. The amount of your deductible can be found on your policy’s “Declaration” page.
Below are standard obligations that you have to your insurance company after a loss takes place:
- Give prompt notice of the loss.
- Protect the property from further damage, and make reasonable and necessary repairs to protect the property.
- Keep an accurate record of repairs and expenses regarding the loss.
- Prepare an inventory of damaged personal property with bills and receipts.
- Notify the police and credit card companies in case of a loss by theft.
- Show the damaged property.
- Provide records and documents.
- Submit to an examination under oath.
- Send a sworn proof of loss within 60 days of request.
You must ensure that you satisfy your obligations to your insurance company. If you do not comply with these obligations, you could forfeit coverage for an otherwise covered loss.
- Your insurance company must respond to communications from you within 14 days of receipt (Florida Statutes Chapter 627, Section 70131).
- Your insurance company also must pay or deny your claim within 90 days after receiving notice of your claim, unless there are factors beyond its control.
If you have a mortgage on your property, your insurance policy and your mortgage contract require that the mortgage company be listed as a payee on any insurance check that is issued to you for your loss. In this situation, you will need to contact your mortgage company directly to confirm its procedure for endorsing an insurance check. Typically, a mortgage company will want some type of confirmation that the repairs to your home have been completed, to protect its security interest in your property.