In recent years, insurance carriers in Florida have added many exclusions to property
insurance policies, with little oversight or public debate. These exclusions are drafted
into policy leaving consumers with less coverage for the same (if not higher) premium.
Because many policyholders rarely read every word of their large and complex policies,
they may not even be aware of what is NOT covered. Since policyholders are unable to
negotiate policy language, they are left with a choice of accepting the changes,
purchasing new endorsements or seeking a different carrier.
Examples of common policy exclusions include:
Eliminating Your Rights to Appraisal
appraisal process to settle disputes between insurance companies and the insured over
amount of loss or value of damaged property. Many insurers are restricting or
eliminating this provision, which provides important consumer protections.
– For 200 years, policies have included the bindingGiving You a Sinking Feeling
unless the sinkholes are deemed “catastrophic,” usually meaning large and sudden. But
slowly occurring sinkholes can cause catastrophic damage to a home and its value.
Damage can run into the hundreds of thousands, often more than the value of the
home, leaving many homeowners with no other choice than to walk away from their
mortgages.
– Many policies no longer cover damage from sinkholesRequiring You to See Through Walls
often stemming from damage behind walls or under slabs that doesn’t become
noticeable for weeks or months. Citizens and other insurance companies now deny
claims for leakage occurring over more than 14 days, even if it is hidden from sight. In
fact, Citizens has just announced plans to further expand its water exclusion.
– Most insurance claims deal with water damage,Eliminating Coverage for Mold
Though it is recommended that water be removed and damaged areas dried within 48
– Where there is water damage mold often forms.‐72 hours, company insurance adjusters often are unable to visit the home within that
time. No matter the reason, if mold forms, most companies will no longer cover the
cost of its removal.
Leaving Screened Structures Uncovered
to be covered under most homeowner insurance policies. Many carriers have now
added exclusions that remove screened structures from coverage.
– Popular in Florida, screened enclosures usedRe
condo (such as floor damage from a falling light fixture or fan) is covered. Citizens’ new
condo policy, however, only covers such damage if the falling objects come down from
the sky through your roof or walls. Great coverage for meteorites, but little else.
‐Defining “Falling Objects” – Typically, damage from falling objects in a home or
