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SEAN MICHAEL SHAW
Insurance Consumer Advocate

Advisory for Homeowners

Home ownership is considered an “American Dream” and for most of us it is our primary financial investment. For this reason, it is important that informed decisions be made when it comes to protecting this investment through the purchase of homeowners insurance. In recent years, insurance premiums have risen dramatically due to the hurricane exposure in our state. In order to make insurance premiums more affordable many of the standard homeowners policy provisions are now offered as coverage options. While intentions of this new practice are well founded, many homeowners may find that they do not have adequate insurance coverage to repair or rebuild their homes or to replace possessions after a loss. Some of the basic steps that you should consider when reviewing your current homeowners insurance policy or before purchasing homeowners insurance are:

  • Visit the Department's Consumer Services website to obtain copies of the Consumer Guide - Insuring your Home and the Consumer’s Quick Check Guide for Homeowners Policy.
  • Evaluate the value of your home. (Remember that at the time of a loss, your home must be insured at a limit that will allow you to repair or re-build your home with current building codes and costs.)
  • Inventory your possessions and purchase an adequate amount of replacement cost coverage. We also recommend that you update pictures of your home inside and out on an annual basis.
  • Review the Checklist of Coverage and the Outline of Coverage that accompanies your policy. This is the time to ensure that your homeowners policy provides the coverage you requested and to address coverage concerns.
  • Shop and Compare - If you see advertisements which promise substantially lower premiums, we recommend that you carefully review and compare all coverage limits and options with your current homeowners policy.
  • Caution: We recommend that you do not cancel your current homeowners policy without first reviewing the replacement policy to ensure that it provides all coverage limits and options as requested. In addition, if you request that your current homeowners policy be cancelled prior to the expiration date you may be required to pay a penalty.

Homeowners insurance policies are complex legal contracts, if you have any questions or concerns, do not hesitate to contact the Department of Financial Services, Division of Consumer Services at 877-MY FL CFO or 877-693-5236 or visit the website at http://myfloridacfo.com.