Your Florida insurance policy sits in a drawer, probably still in the envelope it arrived in. Most homeowners treat it like a terms-of-service agreement: something you accept without reading. But unlike skipping past app permissions, ignoring your insurance policy can cost you tens of thousands of dollars when disaster strikes. Florida's unique weather risks, from hurricanes to sinkholes, create coverage complexities you won't find in policies from other states. Understanding how to read your Florida insurance policy means grasping exclusions, deductibles, and limits before you need to file a claim. The declarations page alone contains critical information about what you're actually paying for, yet many policyholders have never examined it closely. Hurricane deductibles work differently than standard deductibles, and that difference could mean paying $15,000 out of pocket instead of $1,000. Flood damage isn't covered under standard policies, a fact that surprises homeowners every hurricane season. This guide walks you through each section of your policy document, translating insurance jargon into practical knowledge you can use. By the time you finish, you'll know exactly where to look for coverage limits, how to spot dangerous exclusions, and what your responsibilities are after a loss.

The declarations page, often called the "dec page," serves as your policy's executive summary. You'll find it at the very beginning of your policy documents, typically running one to three pages. This single section contains more actionable information than any other part of your policy, making it your first stop when reviewing coverage.

Your dec page lists your name, property address, policy number, and the insurance company's contact information. More importantly, it shows every coverage type you carry and the dollar limits for each. Premium breakdowns appear here too, showing exactly what you pay for dwelling coverage versus liability versus other protections.

Identifying Policy Limits and Effective Dates

Coverage limits on your dec page represent the maximum your insurer will pay for each type of loss. Your dwelling coverage limit should reflect your home's reconstruction cost, not its market value or what you paid for it. Personal property limits typically range from 50% to 70% of your dwelling coverage.

• Dwelling coverage: the maximum paid to rebuild your home's structure
• Personal property: covers belongings inside your home up to the stated limit
• Liability: protects you if someone is injured on your property
• Medical payments: covers minor injuries to guests regardless of fault

Check your policy's effective dates carefully. Coverage gaps between policies leave you completely exposed, and even a single day without coverage during hurricane season creates serious risk.

Understanding Florida-Specific Hurricane and All-Other-Peril Deductibles

Florida policies feature two distinct deductible types, and confusing them leads to unpleasant surprises. Your "all-other-peril" deductible applies to most claims: fire, theft, water damage from burst pipes. This deductible is usually a flat dollar amount, perhaps $1,000 or $2,500.

Hurricane deductibles work entirely differently. They're calculated as a percentage of your dwelling coverage, typically 2% to 5%. On a home insured for $400,000, a 2% hurricane deductible means you pay $8,000 before insurance kicks in. A 5% deductible on that same home costs you $20,000 out of pocket.

The National Hurricane Center's definition determines when hurricane deductibles apply. Once a storm receives a name and the National Weather Service issues a hurricane watch or warning for your area, the hurricane deductible activates.

Your policy divides protection into distinct categories, each covering specific types of losses. Understanding these categories helps you identify gaps before they become problems. Most Florida homeowners policies follow a standardized format, making it easier to compare coverage across different insurers.

Dwelling and Personal Property Protections

Dwelling coverage, listed as Coverage A, pays to repair or rebuild your home's structure after covered damage. This includes attached structures like garages and built-in appliances. Your roof, walls, floors, and permanent fixtures all fall under dwelling coverage.

Coverage B protects other structures on your property: detached garages, sheds, fences, and pool enclosures. This limit is usually 10% of your dwelling coverage. Coverage C handles personal property, meaning your furniture, electronics, clothing, and other belongings.

• Scheduled personal property: high-value items like jewelry need separate listing
• Sub-limits apply: cash, securities, and firearms have lower maximum payouts
• Off-premises coverage: belongings stolen from your car may be covered

Liability and Medical Payments to Others

Coverage D provides liability protection if someone sues you for injuries or property damage. Your dog bites a neighbor, a guest trips on your walkway, your child breaks a window playing baseball: liability coverage responds to these situations. Standard limits start at $100,000, but most financial advisors recommend at least $300,000.

Medical payments coverage, Coverage E, pays for minor injuries to guests without requiring them to sue you. A visitor who sprains an ankle on your property can submit medical bills directly to your insurer. This coverage typically maxes out at $1,000 to $5,000 per person.

Loss of Use and Additional Living Expenses

When covered damage makes your home uninhabitable, loss of use coverage pays for temporary housing. Coverage F reimburses hotel costs, apartment rent, and increased living expenses while repairs happen. Restaurant meals, laundry services, and pet boarding can qualify if they exceed your normal expenses.

Most policies limit loss of use coverage to 20% to 30% of your dwelling coverage. Time limits also apply, often capping coverage at 12 to 24 months. Keep all receipts during displacement, as insurers require documentation for reimbursement.

Every insurance policy excludes certain perils, and Florida policies contain exclusions specific to the state's risks. The exclusions section tells you what your policy won't cover, making it arguably more important than the coverage sections. Reading exclusions carefully prevents the shock of denied claims.

Identifying Flood and Sinkhole Exclusions

Standard Florida homeowners policies exclude flood damage entirely. This exclusion appears in bold language, yet homeowners still express surprise when hurricane-driven flooding isn't covered. Flood insurance requires a separate policy through the National Flood Insurance Program or a private insurer.

Sinkhole coverage presents another Florida-specific issue. Insurers must offer catastrophic ground cover collapse coverage, but this only applies when your home's foundation is damaged and the structure becomes uninhabitable. Actual sinkhole coverage, which responds to ground movement without structural collapse, costs extra and isn't automatically included.

• Flood: never covered under standard policies, regardless of cause
• Sinkhole: limited coverage unless you purchase an endorsement
• Mold: often excluded or severely limited after water damage
• Wear and tear: gradual deterioration isn't covered

Reviewing Law and Ordinance Coverage for Building Codes

After major damage, rebuilding often requires meeting current building codes. If your home was built before Florida's stricter post-Andrew codes, upgrades can add significant costs. Standard policies pay only to restore your home to its previous condition, not to meet new code requirements.

Law and ordinance coverage fills this gap. This endorsement pays for code-required upgrades during reconstruction. Without it, you're responsible for the difference between old construction standards and current requirements. Given Florida's evolving hurricane codes, this coverage is particularly valuable for older homes.

The conditions section outlines your obligations and the claims process. Missing deadlines or failing to follow procedures can jeopardize your claim. These requirements aren't suggestions: they're contractual obligations you agreed to when purchasing coverage.

Your duties after a loss include:

1. Notify your insurer promptly, usually within 24 to 72 hours
2. Protect your property from further damage with temporary repairs
3. Document damage thoroughly with photos and video before cleanup
4. Provide a sworn proof of loss statement if requested
5. Cooperate with the insurer's investigation

Florida law requires insurers to acknowledge claims within 14 days and make coverage decisions within 90 days. Keep records of all communication with your insurer, including dates, names, and conversation summaries. Written communication creates a paper trail if disputes arise.

Insurance policies use specific definitions that may differ from everyday language. The definitions section, usually near the policy's end, explains exactly what terms mean within your coverage. A word's legal definition in your policy controls how claims are handled, regardless of common usage.

Actual Cash Value vs. Replacement Cost Definitions

Replacement cost coverage pays to replace damaged items with new equivalents. If your five-year-old television is destroyed, replacement cost coverage buys you a comparable new television. This coverage type costs more but provides significantly better protection.

Actual cash value coverage deducts depreciation from your payout. That same television might be valued at only 40% of its original price after five years of depreciation. You receive a check for the depreciated value, leaving you to cover the difference for a replacement.

Check whether your dwelling coverage and personal property coverage use the same valuation method. Some policies provide replacement cost for the structure but actual cash value for belongings. Understanding these definitions before a loss helps you budget appropriately for potential out-of-pocket costs.

Florida requires insurers to include specific notices in your policy documents. These mandated disclosures explain your rights, available discounts, and special assessments. Reviewing these notices ensures you're receiving all legally required information.

Look for notices about hurricane mitigation discounts. Florida law requires insurers to offer premium reductions for wind-resistant features like hurricane shutters, roof straps, and impact-resistant glass. If your home has these features and you're not receiving discounts, contact your insurer immediately.

Citizens Property Insurance Corporation policyholders face potential assessments after major hurricanes. These surcharges can appear on your policy even if you don't have Citizens coverage, as the state-created insurer can assess all Florida policyholders to cover catastrophic losses.

Your Florida insurance policy is a contract protecting your most valuable asset. Reading it thoroughly before you need to use it puts you in control. Schedule an annual policy review, ideally before hurricane season, to ensure your coverage keeps pace with your home's value and your family's needs. Contact your agent with questions about anything unclear: that conversation costs nothing but could save you everything.