Does Insurance Cover Water Damage in Florida?

Sudden & Accidental vs. Gradual Damage: The Key Distinction

This is the single most important concept in water damage insurance. Florida homeowners policies (HO-3 is the most common) generally work like this:

The word "sudden" does a lot of heavy lifting here. If your insurer can argue that the damage happened gradually — say, a pipe behind your wall has been leaking for months — they may deny the claim. That's why documentation is critical. When you discover water damage, call a professional immediately and get the cause diagnosed. A restoration company like DryResponse can identify whether the damage is acute or longstanding, which directly impacts your claim.

In Brevard County, aging homes in Melbourne, Palm Bay, and Rockledge are especially vulnerable. Many were built in the 1970s and 1980s with polybutylene pipes — a material known for deteriorating and failing suddenly. If your home has polybutylene plumbing, a pipe failure is more likely to be classified as "sudden" because the material is known to fail without warning.

Flood Damage vs. Water Damage: Two Very Different Things

This trips up more Florida homeowners than almost anything else. In everyday language, "my house flooded" could mean anything. But in insurance language, "flood" has a very specific definition — and your standard homeowners policy does NOT cover it.

Translation: if water comes from outside your home and rises up — storm surge, river overflow, heavy rain pooling — that's a flood. Your homeowners policy won't pay. You need a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private flood carrier.

This matters enormously in Brevard County. We're a coastal county with extensive FEMA flood zones. The barrier islands — Cocoa Beach, Cape Canaveral, Satellite Beach, Indialantic, Melbourne Beach — are largely in V and VE zones (high-risk coastal). Much of Merritt Island and areas along the Indian River and Banana River fall in A and AE zones. Even some inland areas of Palm Bay and West Melbourne have flood zone designations.

If you have a federally backed mortgage and your property is in a high-risk flood zone, your lender requires flood insurance. But even if you're not in a high-risk zone, consider this: FEMA reports that roughly 25% of flood claims come from moderate- and low-risk areas. On the Space Coast, we know better than to trust the zone maps alone.

Citizens Property Insurance vs. Private Carriers in Florida

If you own a home in Brevard County, there's a significant chance you're insured through Citizens Property Insurance Corporation — Florida's state-backed insurer of last resort. After several private carriers left the Florida market or went insolvent in recent years, Citizens' policy count surged past 1.4 million.

Here's what you need to know about Citizens vs. private carriers when it comes to water damage claims:

• •Citizens covers sudden and accidental water damage like private carriers do. The core coverage is similar.
• •Citizens often has higher hurricane deductibles — typically 2%, 5%, or 10% of your dwelling coverage. On a $350,000 home, a 5% hurricane deductible means you're paying the first $17,500 out of pocket.
• •Citizens has been known for slower claims processing due to volume. Document everything meticulously and follow up regularly.
• •If a private carrier offers you coverage, Florida law may require you to leave Citizens (the 'depopulation' program). Compare coverage carefully before switching.
• •Both Citizens and private carriers require you to mitigate further damage after a loss. This is a legal obligation in Florida — not optional.

Whether you're with Citizens or a private carrier, the most important thing after water damage is acting fast and documenting everything. A professional restoration company experienced with Florida insurance claims can be the difference between a smooth payout and a denied claim.

Florida's AOB Reform: What Changed in 2019 and 2022

Assignment of Benefits (AOB) used to be one of the most abused tools in Florida insurance. Here's the backstory and where things stand now.

An AOB allows you to sign over your insurance claim rights to a third party — typically a restoration company — so they can deal with your insurer directly. In theory, it's convenient: the restoration company does the work and handles the billing. In practice, some bad actors inflated invoices and filed frivolous lawsuits, driving up premiums for everyone.

2019 Reform (HB 7065): Required AOB agreements to include specific terms — a written estimate, a rescission period (you can cancel within a set timeframe), and limits on fees. Contractors were required to provide itemized invoices and work within the scope of the original estimate.

2022 Reform (SB 2-D and SB 4-D): Florida's special session in December 2022 went further. One-way attorney fees were eliminated for insurance claims filed after the new law took effect. This was a major change — previously, if a policyholder (or their assignee) won a dispute, the insurer had to pay the attorney's fees. Removing that incentive significantly reduced litigation but also made it harder for homeowners to challenge underpayments.

What this means for you: You can still use AOB with a restoration company, but read what you're signing. Make sure the agreement includes a clear scope of work, a detailed estimate, and your right to cancel. At DryResponse, we work directly with your insurance carrier and explain every step of the process — whether or not you sign an AOB.

Understanding Your Deductibles

Florida homeowners policies typically have multiple deductibles, and they can be confusing:

• •All-Other-Perils (AOP) Deductible: This applies to water damage claims from non-hurricane events (burst pipes, appliance failures). It's usually a flat dollar amount — $1,000, $2,500, or $5,000 are common.
• •Hurricane Deductible: A separate, usually higher deductible that only applies when the damage is caused by a named hurricane. It's typically a percentage (2%, 5%, or 10%) of your dwelling coverage. For Brevard County homes valued at $300,000–$500,000, this can mean $6,000 to $50,000 out of pocket.
• •Flood Insurance Deductible: If you have a separate flood policy, it has its own deductible — typically $1,000 to $10,000.

Pro tip: Check your declarations page (the summary at the front of your policy) right now — before you have a loss. Know your deductible amounts. Many Brevard County homeowners are shocked to discover their hurricane deductible is much higher than they expected. If you can't find your dec page, call your agent and ask them to email you a copy.

What to Do When Your Water Damage Claim Is Denied

It happens more than you'd think. Florida insurance companies deny water damage claims for a variety of reasons. Here's what to do:

• •Get the denial in writing. Your insurer is required to provide a written explanation of why they denied your claim. Read it carefully — the reason matters for your next steps.
• •Review your policy. Look at the specific exclusion or condition they cited. Sometimes denials are based on technicalities that can be challenged.
• •Don't accept the first 'no.' Insurers deny claims that are later reversed all the time. A firm, documented appeal with additional evidence can change the outcome.
• •Consider a public adjuster. A licensed public adjuster works for YOU (not the insurer) and can re-inspect the damage, prepare a detailed estimate, and negotiate with your carrier. They typically charge 10-20% of the claim payout.
• •File a complaint with the Florida Department of Financial Services (DFS). They investigate consumer complaints against insurers and can sometimes accelerate a resolution.
• •Consult an insurance attorney. With the 2022 elimination of one-way attorney fees, litigation is less common — but for large claims, it may still be worth pursuing. Many Florida insurance attorneys offer free initial consultations.

The strongest thing you can do to prevent a denial is to document everything from the moment you discover damage and have a professional restoration company on site quickly. Insurers are much less likely to deny a well-documented claim with professional assessments and moisture readings.

Brevard County's Unique Insurance Challenges

Living on Florida's Space Coast comes with specific insurance realities:

• •Hurricane exposure is extreme. Brevard County has been impacted by Hurricane Matthew (2016), Hurricane Irma (2017), and was within the cone for Hurricane Ian (2022). Premiums reflect this risk.
• •Coastal flood zones cover a huge portion of the county. From Titusville south to Melbourne Beach, waterfront and near-waterfront properties face mandatory flood insurance requirements.
• •The Indian River Lagoon can flood during heavy rain events and king tides, even without a named storm. Properties along the lagoon in Cocoa, Rockledge, and Melbourne often experience nuisance flooding.
• •Citizens Property Insurance has a heavy presence in Brevard. Many private carriers have pulled back from coastal Florida, leaving Citizens as the only option for thousands of local homeowners.
• •Florida's insurance market has been called a 'crisis' for years. Premiums have risen 30-60% for many Brevard homeowners since 2020. Understanding your coverage has never been more important.

Frequently Asked Questions