Florida insurance after a leak
What a Florida homeowners policy usually pays after water gets in.
Sudden water is usually covered, gradual water usually is not, flood needs its own policy, and mold is often capped. Here is what Florida's own regulator says, and the one form you should not sign.
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What Florida's regulator says
Covered, not covered, capped
Sudden water is a covered peril
The Florida Department of Financial Services lists accidental discharge or overflow of water or steam among the standard perils in a homeowners policy.
Flood is not
The Department says most homeowners policies exclude flood damage (rising water). That needs a separate flood policy.
Mold is often capped
Mold that results from a covered peril is typically covered, but the amount can be limited. The most common limit the Department sees is $10,000, and some insurers exclude mold entirely.
Check for a limited water damage endorsement
The Department's sample declarations page includes a "Limited Water Damage Coverage" form. If yours has one, read it before you call anyone.
Source: Florida Department of Financial Services, Homeowners Insurance toolkit, March 2024. View source
Assignment of Benefits
You do not need to sign an AOB to get repairs done
An AOB transfers your insurance claim rights to the contractor. The Florida Department of Financial Services describes it as letting a third party file the claim, make repair decisions and collect the insurance payment without your involvement.
In Florida, it is no longer valid for most people: the Department says recent law prohibits a policyholder from assigning post-loss benefits of a residential or commercial property policy issued or renewed on or after January 1, 2023.
In every state, the Department's advice holds: you do not need to sign an AOB to get your claim processed or your home repaired.
If someone hands you one tonight
- Say no tonight. Ask for a written scope and price instead.
- Call your insurer yourself and open the claim in your own name.
- If you are in Florida and your policy was issued or renewed on or after January 1, 2023, the AOB is not valid anyway. Do not sign it.
- Ask the company to bill you or the insurer through a normal direction-to-pay, with you still in control of the claim.
- Photograph the paperwork they gave you.
- Get a second bid in the morning.
Source: Florida Department of Financial Services, Assignment of Benefits. View source
Claim or no claim
Three questions decide it
Was it sudden? The Texas Department of Insurance says home and renters policies cover sudden and accidental water damage (burst pipe, toilet overflow, broken washer hose) and do not cover gradual leaks or seepage, or flood.
Is it bigger than the deductible? Water damage restoration averages $3,868 nationally and typically runs $1,383 to $6,369. A one-room clean water dry-out is often below a $1,000 to $2,500 deductible.
Did you protect the property? The Texas Department of Insurance warns the insurer may deny the claim if you do not.
Where this comes from
Water still coming? That comes before the claim.
Stop the water, photograph everything, then call your insurer yourself.