In Part 1 of our look at homeowner’s insurance, (PART 1 HERE) Momentum spoke with Jim Pihl, Agency Owner of The Pihl Agency with Brightway Insurance, about the rise in premiums for Florida homeowner’s insurance, and the importance of understanding the difference between market value and replacement value insurance. Today, Jim suggests two ways that homeowners might save hundreds or thousands by choosing a different type of hurricane deductible, and by doing a Wind Mitigation Inspection of their roof.

Insurance for hurricane damage often has a huge deductible … and most homeowners don’t even realize it. 

As hurricane season (June 1 to November 1) begins, it’s important to understand how the hurricane damage deductible -- the amount you must pay before the insurance company starts paying – works. Suppose a hurricane destroys your fencing and it’ll cost $6,000 to replace. Like most homeowners, you probably figure you’ll be OK because your regular homeowner’s coverage has a $500-$1,000 deductible, right? Wrong. In areas like Florida, which have a high hurricane risk, insurance for hurricane-caused damage usually has a deductible that is calculated on a percentage of the insured value of your home.  So, if you have a home with an insured value of $250,000, and – as is common in Florida -- your deductible is based on 2% of home value, your deductible would be $5,000! 

“In Florida, this ‘percent’ deductible policy has been sold as the only option for 25 years,” Jim says, noting that many homeowners are unaware of this different deductible until they submit a claim for hurricane damage. “But, in the last year or two, some companies have been offering hurricane coverage with flat deductibles, like $500 or $1,000, for a very small additional cost, maybe $20-$50 per year. Homeowners should check their policies to see what their deductibles are for hurricane damage, and if it is a percentage deductible, consider switching to a plan with a flat deductible.”   

Jim urges homeowners who experience hurricane damage to immediately protect the rest of their home from more damage. “For example, if you have roof damage, the first thing to do is get a company out to put on a tarp. The insurance will pay for it.”

Jim also recommends keeping homeowner’s insurance papers, including contact information for the agent or company, in a safe, easily accessible location. “That way, you can take them with you if you have to evacuate, and you can quickly turn in a claim if you have to.”

Reduce your policy premiums with a Wind Mitigation Inspection.  

“One big thing a lot of people don’t know about is the “Wind Mitigation Inspection,” Jim notes. “If your house was built before 2000, but your roof was replaced after 2001, there is a good chance this inspection could save you several hundred dollars a year or more.” 

The reason? Jim explains that in 2001, Florida enacted tougher code requirements for residential roofs to withstand stronger winds. For homes built after that time, homeowner policy costs are lower because they are based on those roofs meeting the new code. For older homes, insurance companies assume the roofs are also older, and don’t meet the new code, so they charge a higher premium. But if you replaced your roof since 2001, that assumption probably is wrong – and costing you more money.

“For a cost of about $75-100, a licensed contractor or home inspector can evaluate your roof to determine whether you meet the new code requirements,” Jim says. “They go into your attic and check three things that affect how well your roof is attached, and whether it meets the newest code. If it does, you can submit this inspection report to your insurance company and get a rate decrease for the life of your policy with that company. Or, you can use the inspection to show your roof meets the new code for 5 years if you want to shop for a new insurance company. Florida law requires the companies accept that inspection form.”  

Jim notes there is no guarantee that your new roof will meet the newest code, but he says the chances are good: “Nine times out of 10, we see a savings of over $300.” 

Momentum gets that reviewing your homeowner’s policy may not be stimulating reading, but it could save you big bucks. Agents such as Jim can help you review your policy to ensure you have the best coverage for your needs at the most budget-friendly price.  

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Jim Pihl, a Jacksonville native, is Agency Owner for Brightway Insurance, The Pihl Agency. His company is the first Brightway Agency in Jacksonville, operating since 2005. It represents 50+ homeowner’s insurance companies, virtually all of those currently operating in Florida, making it easy to compare companies, coverages, and costs. The Pihl Agency is located at 10991 San Jose Blvd Suite 4, Jacksonville, FL 32223. Jim can be reached at 904-262-2886 or jim.pihl@brightway.com.