The coinsurance trap
Many Florida policies contain an 80% coinsurance requirement. If your dwelling coverage is below 80% of actual replacement cost, the carrier can reduce payment proportionally on any claim.
Signs you may be underinsured
- Dwelling limit hasn't been updated since 2019 or earlier
- Rebuild estimate from a contractor exceeds dwelling limit
- Home has been improved (addition, remodel) without limit increase
- Policy uses a 2019 or earlier replacement-cost calculator
What to do
- Annual replacement-cost review at renewal
- Independent rebuild quote every 3 years
- Increase dwelling limit ahead of renewal, not after a claim