Myth or fact? Florida insurance edition

Insurance attracts folklore. Everyone has an uncle with a firm opinion about red cars, a neighbor who is sure the flood zone map settles everything, and a friend who swears the roof will be replaced no matter how old it is. Some of it is harmless. Some of it costs people real money.

Here are seven of the beliefs that come up most often in Florida, and how they hold up.

1. "Red cars cost more to insure."

Myth. Paint color is not on the rating sheet. They look at the make and model, its repair costs, how often that model is stolen, its safety record and engine size, along with who is driving it and where. A red economy sedan and a silver one cost the same to insure. Where a sports car does cost more, the horsepower and the parts bill are doing that, and the red is incidental.

2. "My homeowners policy will handle a flood."

Myth, and the expensive one. Water rising from outside, whether surge, an overflowing canal or a street that fills in a downpour, sits outside the homeowners form. It gets insured separately, by the federal flood program or a private flood company. Water that comes in because wind broke a window is a different matter, and that distinction is exactly where many claims get complicated.

3. "I'm not in a flood zone, so I don't need flood coverage."

Mostly myth. A flood zone tells you whether a lender will require coverage, not whether water will ever reach the house. Properties outside the high-risk zones flood too, and because the risk is lower, the coverage there is often surprisingly affordable. Worth pricing before deciding.

4. "My deductible is my deductible."

Partly true. Florida homeowners policies usually carry two: a regular deductible for most claims, and a separate hurricane deductible that is typically a percentage of the dwelling limit, commonly 2% or more. On a large home the hurricane figure can run into five digits. Knowing which one applies to which kind of loss is worth five minutes with your declarations page.

5. "If my laptop is stolen on vacation, I'm out of luck."

Often a myth. Many homeowners and renters policies extend personal property coverage to belongings away from home, sometimes worldwide, often at a reduced limit and always subject to your deductible. It depends on the policy, so check before you travel rather than after. Items in a rental car may also involve the credit card or rental agreement.

6. "The insurance will put a new roof on no matter how old it is."

Increasingly a myth in Florida. Many policies now settle claims on older roofs using a payment schedule that reduces what they pay as the roof ages, rather than full replacement cost. Some carriers will not write a home at all past a certain roof age. If your roof is getting older, it is worth knowing which kind of settlement your policy uses.

7. "Shopping around every year is pointless; they're all the same."

Myth. Florida's market moves a lot. Carriers change their appetite by county, by roof age and by construction type, sometimes within a year. Two quotes for the same home can be far apart, and the coverage behind them can differ in ways a premium figure does not show.

Bonus: "Insurance agents all work for one company."

Depends who you ask. Captive agents represent a single insurer. Independent agents work with several and can compare them for you. Both have their place; it is worth knowing which kind you are talking to.

How K2 fits in

K2 Insurance is an independent agency in Delray Beach. If one of these surprised you and you are not sure how your own policy handles it, we are happy to read it with you in plain language. You can also browse what we cover.

This article is general information, not insurance or legal advice. What is actually covered depends on the terms of your individual policy. Speak with a licensed agent about your specific situation.