Is it mandatory to have homeowners insurance in Florida?

If you live in the Sunshine State, you may be wondering if it is mandatory to have homeowners insurance in Florida. Florida law doe not require you to obtain a homeowners policy, but, your mortgage company very well may.

A policy of insurance that covers your home or commercial building is a legal binding contract. However, this is not the type of contract that is bargained for. Basically, the insurance company provides you with the policy and you either take it or leave it.

When you take out a policy for Florida homeowners insurance at, it will provide coverage for the insurer in the event of a loss. The majority of policies in Florida provide coverage for the insured structure and often includes a list of exclusions for which will not be covered.

If you fail to maintain an insurance policy, most lenders will obtain coverage for you and then add the cost to your mortgage amount. This is considered a forced-placed policy.

Most policies will place limits of liability on certain items of your personal property such as antiques, jewelry and artwork. It is advised that you talk with your agent about the particular caps that are specified in your policy.

When you select your policy, you want to make sure you understand the coverage that you are purchasing and exactly what it will cover should the need arise. In the event that you do have a loss and have to file a claim, you do not want the unexpected news that you did not have the coverage that you thought you did.

One of the most important things you should understand when you have homeowners insurance in FL is that there is a difference between the replacement cost of your items and the actual cash value. This is often where the confusion comes in when a claim is filed and people become upset. Replacement cost will provide coverage for the amount of replacing or repairing the damaged items. Actual cash value will only provide coverage for the amount that you will need to replace or repair the items less the depreciation value. Sometimes this can be a substantial difference in money.

When you are considering your policy from, take your time to shop around and speak with several different agents to make sure you are getting exactly what you are looking for in your policy. You do not want any unexpected surprises should the need arise.