Top 5 Mistakes to Avoid When Purchasing Flood Insurance in Florida

Flood insurance is an essential consideration for Florida homeowners, but navigating the process can be tricky. Avoiding these common mistakes can help save you money and offer proper protection.

5 Flood Insurance Mistakes to Avoid

The following are five flood insurance mistakes to avoid as a Florida homeowner:

1. Assuming you don’t need it. Many homeowners believe flood insurance is only necessary in high-risk zones. However, many flood claims come from properties outside these areas. Florida’s flat terrain and frequent storms make nearly every property vulnerable.

2. Relying solely on NFIP coverage. The National Flood Insurance Program (NFIP) offers basic coverage, but it may not be enough. NFIP typically caps structure coverage at $250,000 and contents at $100,000. If your home’s value exceeds this, consider supplemental private flood insurance.

3. Underestimating replacement costs. Some policies cover actual cash value rather than replacement cost. This means depreciation is factored in, potentially leaving you underinsured. Always verify that your policy covers the full cost of rebuilding your home and replacing your belongings.

4. Waiting until a storm is near. Flood insurance policies typically have a 30-day waiting period before coverage begins. Waiting until a hurricane is forecasted could leave you unprotected when you need it most.

5. Failing to understand policy exclusions. Flood insurance doesn’t cover everything. For example, damage from sewer backups or mold may not be included unless specifically added. Read your policy carefully and ask your agent about exclusions and optional endorsements.

By avoiding these pitfalls, Florida homeowners can secure comprehensive flood protection and peace of mind. Don’t wait for the next storm—review your coverage today.

Learn More

For flood insurance near you, contact Lakewood Financial Services, Inc.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.