The Fine Print Gotchas and Hidden Costs in Your Insurance Policy That Can Cost South Floridians Thousands After a Hurricane
Living in South Florida means knowing hurricane season is a waiting game. Hurricane Erin may have stayed out at sea, but the rough surf it brought to the east coast was a reminder. All it takes is one storm, and we are still in the thick of the season through November.
Most homeowners glance at their policy and think, “I’m covered if a storm hits.” The reality is often different. Storm damage and flood claims are just the beginning. The fine print is where the real surprises hide, and those surprises can be expensive.
Here are ten of the most common gaps we find when reviewing policies for South Florida homeowners.
Additional Living Expenses (ALE)
If your home is uninhabitable after a storm, ALE is what helps cover hotels, meals, or a temporary rental. On paper, the coverage looks fine, but many policies cap it at $5,000 or $10,000. In today’s South Florida rental market, that could be gone in just a few weeks, long before your home is livable again.
Replacement Cost vs. Actual Cash Value (Contents)
Your personal property like furniture, electronics, and clothing may be insured at actual cash value, which means depreciation cuts down the payout. That $2,000 sofa you bought could only be valued at $300 after a loss.
Upgrading to replacement cost coverage is a smart move, but even then the process is not always straightforward. Insurers often pay the depreciated amount first. To recover the rest, you need to replace the item and submit receipts. If you do not, you only receive the lower amount. Think of it as a two-step dance — one most homeowners do not realize they signed up for.
Roof Settlement Schedules
While your home itself is usually insured at replacement cost if you have a mortgage, some carriers in Florida have added roof settlement schedules. This is what we call a fine print gotcha. If your roof is older than a certain age, the insurer may only pay part of the replacement cost or downgrade it to actual cash value. That can turn into a very expensive surprise.
Ordinance & Law (Building Code Upgrades)
Florida’s building codes get stricter every few years. If your home is older and you do not have ordinance and law coverage, you could be paying out of pocket for things like impact windows, new roof straps, or updated electrical work. These are upgrades required by code, and they can add up quickly.
Pool Enclosures and Outdoor Structures
Screened enclosures, fences, docks, and detached garages are part of life here. They are also often limited or excluded under standard policies. Do not assume the “other structures” section gives you enough coverage.
Special Deductibles
Hurricane deductibles, windstorm deductibles, flood deductibles. Some policies also use a percentage of your dwelling value as the deductible. On a $500,000 home, a 5 percent hurricane deductible means you pay $25,000 before your policy even responds.
Sewer and Drain Backups
After heavy rains, it is not unusual for drains to back up or sump pumps to overflow. Most standard policies exclude this, but coverage is available as an add-on. Without it, you are paying out of pocket for cleanup and repairs.
Mold, Condensation, and Water Intrusion
Mold after storm damage, condensation around an air handler, or water seeping into drywall. Most policies put a hard cap on coverage, sometimes as low as $10,000. In reality, remediation often costs far more.
Most policies also include a duty to protect your property after a loss. That means doing what you reasonably can to prevent further damage. But if you have evacuated and cannot get back right away, moisture can build up and mold can spread fast. Those delays can create gray areas in a claim, which is why it is so important to understand your coverage limits before the storm.
Food Spoilage After Power Outages
Hurricanes often bring extended power outages. Many policies only offer a few hundred dollars of coverage for food spoilage. That is not enough to replace a refrigerator full of groceries, let alone a freezer.
High-Value Items and Specialty Collections
Jewelry, fine art, collectibles, wine, or musical instruments are usually capped at low limits unless scheduled separately. If you have invested in these items or upgraded your home, make sure your coverage reflects it.
Don’t Make Yourself Vulnerable
A hurricane does not just take out roofs and flood living rooms. Sometimes the real financial strain often comes from the fine print. These exclusions, limits, and depreciated payouts are what leave families scrambling after the storm has passed, even if they didn’t suffer “major” damage.
Erin may not be the storm that hits us, but hurricane season is far from over. The smart move is to ask yourself now: Do I really know what my policy covers, or am I just assuming?
📃Open your policy and take a look. If something leaves you unsure, email it to me and we’ll turn that uncertainty into confidence together.