What it may cover
- Dwelling coverage to rebuild or repair the structure
- Personal property coverage for belongings inside
- Liability protection if someone is injured on your property
- Other structures like fences, sheds, and detached garages
- Additional living expenses if you're displaced after a covered loss
- Screened enclosures and pool cages, often with separate wind limits
- Ordinance or law coverage for the added cost of rebuilding to current code
Who it's for
- First-time homebuyers securing a mortgage
- Long-time homeowners reviewing coverage at renewal
- Owners of older homes needing wind mitigation review
- Families wanting liability protection beyond the structure
- Owners who've made storm-hardening upgrades since their last policy review
Why it matters
Mortgage lenders require homeowners insurance, but the minimum required by a lender may not reflect the true cost to rebuild in today's construction market. Construction and labor costs in South Florida have risen steadily, so a dwelling limit set a few years ago at renewal time may no longer be enough to fully rebuild after a total loss.
Common coverage options
Replacement cost
Pays to rebuild or replace at current costs, with no deduction for depreciation.
Actual cash value
Lower premium option that factors in depreciation on claims.
Extended replacement cost
Adds a buffer above the dwelling limit in case rebuild costs spike after a major storm.
Ordinance or law coverage
Covers the added cost of meeting current building codes when rebuilding an older home.
What affects the price
- 01Home age, construction type, and roof condition
- 02Distance to the coast and flood zone designation
- 03Wind mitigation features like impact windows or a hip roof
- 04Claims history on the property
- 05Coverage limits and hurricane deductible chosen
Questions to ask before buying
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Frequently asked questions
Coverage details depend on the carrier, selected policy, applicable state laws, underwriting criteria, and specific exclusions. This content is for informational purposes only and does not constitute legal or financial advice.
