Does my insurance policy cover any water damages in the house?

The answer is “Not necessarily”

People’s Trust Insurance just became the latest insurance company in Florida to exclude coverage of water damages from their home insurance policies on homes over 40 years old. Nonetheless they will offer $10,000 in limited water damage coverage as an option for an additional cost.

If your home is newer than 40 years you will still be covered. However, if you want to see a discount on your premium you may opt for the same new coverage terms as older homes.

The exclusion had already been adopted by other insurance companies like Federated National, Tower Hill, Heritage, United Property & Casualty and Southern Oak.

Insurance companies blame the decision on sharp increases in the number of claims made by customers for non-weather related water damages in 2014 and 2015 which caused huge losses for the companies.

The exclusion removes water damage – including penetration through roofs or walls and discharge from plumbing, heating, air conditioning units, sprinkler systems or household appliances – as a covered peril for any home more than 40 years old.

As per their data, Palm Beach, Broward and Miami Dade counties made up for 43% of all water damage claims in Florida in 2014. Homes in the South Florida area are older than the States’ average so the water damage exclusion will be felt even stronger here.

Unfortunately, many homeowners will not learn about the change until they have a claim and realize they are responsible for repairs they assume are covered under their policy.

My advice? Talk to your insurance agent and understand the terms, exclusions and co-payments in your policy. Save all receipts for updates to the home to bring it up to current code, for example a new roof or any other remodeling done to it.

As always count on me for tips and support.

Maria T. Villalobos Cell. 786-285-5855; info@BestMiamiHomes.net or visit me www.BrickellCondosInfo.com