The national guide covers the ISO homeowners forms and Coverages A through F. Florida layers on its own rules for hurricanes, sinkholes, roofs and loss settlement, mostly in Fla. Stat. 627.4025, 627.701, 627.706, 627.7011 and 627.714. For cancellation, claims and Citizens rules, see the property and casualty basics guide.

Hurricane coverage and deductibles

• Hurricane period: starts when a hurricane warning is issued for any part of Florida. It ends 72 hours after the last hurricane watch or warning for any part of the state ends (627.4025(2)(c)).
• Rain damage: hurricane coverage includes interior rain, hail, sand or dust damage only if the windstorm first created an opening in the building (627.4025(2)(a)).
• Required deductible options: insurers must offer hurricane deductibles of $500, and 2%, 5% and 10% of the dwelling limit. A percentage option need not be offered if it would come to less than $500 (627.701(3)).
• Annual deductible: the hurricane deductible applies once per calendar year to all hurricane losses under policies from the same insurer or group (627.701(5)). If the insured switches to a lower deductible after a hurricane loss that year, the lower deductible starts January 1.
• Disclosures (627.701(4)):
  • an 18-point bold warning that the deductible may mean high out-of-pocket costs
  • the dollar amount of the deductible on the declarations page
• Deductibles over 10%: on a home worth less than $500,000, every named insured must sign a handwritten statement, and the mortgage holder must approve in writing.
• Other perils: insurers must offer a $500 all-other-perils deductible and remind the insured of it at least every three years (627.701(7)).
• Wind mitigation: rate filings include discounts for features such as roof strength, roof-to-wall connections and opening protection. Insurers must offer either a lower hurricane deductible or a credit for mitigated homes (627.0629, 627.701(9), 627.711).
• Hurricane-damaged homes: if a home is damaged under an emergency declaration, the insurer can't cancel or nonrenew until 90 days after repairs, except for reasons such as nonpayment or claim fraud. A cancellation that would take effect during a hurricane is postponed until the hurricane ends (627.4133(2)(e), (f)).

Sinkholes (627.706)

• Every homeowners policy covers catastrophic ground cover collapse, which requires all four:
  • an abrupt collapse
  • a depression visible to the naked eye
  • structural damage, including to the foundation
  • condemnation and an order to vacate
• Settling or cracking alone doesn't qualify.
• Broader sinkhole coverage must be offered for an added premium. The insurer may inspect before issuing it. Deductibles may be 1%, 2%, 5% or 10% of the dwelling limit.
• A neutral evaluation process run by DFS resolves sinkhole disputes (627.7074).

Roofs and loss settlement (627.7011, 627.702)

• Roof age: insurers can't refuse to issue or renew solely because of a roof less than 15 years old. For older roofs, if an authorized inspection shows at least 5 years of useful life left, the roof's age alone can't be the reason.
• Roof deductible: capped at the lesser of 2% of Coverage A or 50% of the roof replacement cost. It requires a premium credit and applies only to claims settled on a replacement cost basis (627.701(10)).
• Dwelling total loss: the insurer pays full replacement cost without holding back depreciation. For partial losses, it may pay ACV first and release the rest as repairs are done.
• Personal property: insurers must offer replacement cost coverage without holdback.
• Valued Policy Law: for a building that is a total loss from a covered peril, the insurer pays the policy's face amount. If the loss was caused partly by an uncovered peril, the law doesn't apply and only the covered part is paid (627.702).
• HO-6 loss assessment: unit owner policies include at least $2,000 of loss assessment coverage, with a deductible of no more than $250. No deductible applies if one was already taken on the same loss (627.714).
• Mold: Florida doesn't require mold coverage. Insurers limit or exclude it through filed forms.

Exam traps

• The hurricane period starts at a warning and ends 72 hours after the last watch or warning.
• Required hurricane deductible options are $500, 2%, 5% and 10%, applied once per calendar year.
• Catastrophic ground cover collapse is always covered. Sinkhole coverage is offered separately.
• Roofs under 15 years old can't be the sole reason to refuse coverage.