Q&A: Homeowners insurance policy

If your house was damaged by Hurricane Charley, you’re probably confronting your homeowners insurance policy for the first time in a long time.

You’re not alone. Homeowners insurance -- with its arcane rules, sliding deductibles and various exclusions -- is a mystery to most people because they rarely need to use it.

Orlando-area residents are even less knowledgeable than their coastal counterparts because inland parts of Florida rarely suffer a direct hit from a hurricane.

Here are the answers to some common questions being asked by homeowners throughout Central Florida:

Question: I’ve heard there is something called a “hurricane deductible” that’s different than my deductible for theft or other kinds of damage. What is it, and how much will it cost me?

Answer: After Hurricane Andrew in 1992, the state approved higher deductibles just for hurricane damage. These special deductibles, payable by the homeowner, were designed to help insulate insurance companies, which were threatening to stop doing business in the state, from catastrophic losses. Hurricane deductibles range from 2 percent to 5 percent of the insured value of your house. So a resident with a home valued at $100,000, for example, would have to pay for the first $2,000 to $5,000 worth of repairs before the insurer takes over.

Q: Do I pay the deductible before or after the repairs are made?

A: That varies by insurance company. Generally, the insurer will cut you a check based on the estimated total loss -- but with your deductible amount already subtracted. And to ensure that all of the money is spent on repairs or new possessions, some insurers will make the check out to both you and your mortgage company, which will then disburse the funds as needed.

Q: How does my insurance company decide how much it’s going to give me?

A: In most cases, an adjuster will visit your home and make a preliminary estimate of what it will cost to make repairs and replace damaged possessions. Keep in mind that most insurance policies cover the current value of your possessions -- discounted for condition and age -- and not the actual cost of replacing or repairing them. The same is true of the home itself unless you have a “replacement value” policy. So an insurer might reimburse more for a 2-year-old roof than it would for a 10-year-old one.

Q: I’ve been told it could take days before an adjuster can get to my house. What kind of repairs can I make in the meantime without jeopardizing my claim?

A: Again, insurers have different rules. Generally, they don’t want you to make repairs before an adjuster can survey the damage. But they still want you to protect your home from further damage. Holes in roofs should be covered with tarpaulins to prevent rainwater from getting inside. If you must hire repair crews, such as roofers or tree-trimming services, make sure you document all the work.

Q: I heard that I should save my roof tiles and other debris for the adjuster to inspect. True?

A: To prevent fraud, most insurers want you to show them as much evidence of the damage as possible. If the tiles are still on your property, go ahead and keep them. But combing the neighborhood for stray roof tiles would be a bit excessive. Just don’t throw out any of your damaged possessions.

Q: My neighbor’s tree fell on my home. Whose insurance company is responsible for the damage and cleanup?

A: Yours. Most policies cover damage only within the boundaries of the insured property, regardless of where the tree came from.

Q: Will my policy cover damage to my shed or pool screen?

A: The answer depends on what your policy says. Most policies cover pool enclosures as long as they are structurally attached to the house. But review the policy and look at the fine print to make sure they aren’t excluded. The same goes for room additions or suites: If attached to the house (not just connected by a sidewalk), they should be covered. Backyard shelters or sheds are covered only if you had the insurer write a separate “declaration” into the policy specifically addressing such freestanding structures.

Q: My car was damaged in the storm. Will my homeowners insurance cover it?

A: No. You must file a claim with your auto insurer.

Q: I think the value of my home has risen considerably since I bought my insurance. Has my insurance coverage kept up?

A: Most insurers factor rising home values into the premiums when policies are renewed each year.

Richard Burnett of the Sentinel staff contributed to this article. Greg Groeller can be reached at 407-420-5471 or [email protected].