Separate elections
Homeowners’ insurance and flood insurance are distinct options. Selecting one does not automatically activate the other.
Paragraph 19 · Addendum H
In Florida, “insurable” and “affordable to insure” are not the same question.
Addendum H lets the parties create negotiated homeowners’ and flood-insurance protections based on whether coverage can be secured by a deadline and within the selected first-year premium limit.
What Addendum H does
It turns insurance availability and price into negotiated contract questions.
The rider contains one option for homeowners’ coverage—including windstorm—and a separate option for flood coverage. Each selected option can state a maximum first-year premium as either a dollar amount or a percentage of the purchase price, plus a deadline for securing coverage.
If the buyer cannot secure the selected coverage within the negotiated limit and timely delivers written cancellation notice, the rider provides for return of the deposit and release of the parties from further contract obligations.
Six moving parts
The protection depends on the boxes, blanks and buyer’s performance.
Insurance contingencies work only as written; assumptions about lender requirements or flood zones do not complete the rider.
Homeowners’ coverage
The homeowners’ option addresses coverage including windstorm from a standard carrier or Citizens Property Insurance Corporation.
Flood coverage
The flood option addresses coverage through the National Flood Insurance Program or qualifying private flood insurance.
First-year premium cap
Each selected option can use a negotiated dollar cap or percentage of the purchase price. The two premium limits need not be identical.
Coverage deadline
The buyer must secure coverage within the rider’s timeframe—not merely begin shopping or request a quote before the deadline.
Written cancellation
When the selected coverage cannot be secured within the limit, the buyer must deliver written notice within the applicable timeframe to use the rider’s cancellation right.
If the deadline blank is empty30 / 10whichever occurs earlier
The default deadline
The earlier date controls—not the later one.
When a selected insurance option’s deadline is left blank, the current rider uses the earlier of 30 days after the Effective Date or 10 days before Closing. In a shorter contract, the “10 days before Closing” date may arrive well before day 30.
The deadline applies to securing coverage and delivering any cancellation notice based on inability to obtain the selected coverage within its premium limit.
Calculate the actual date from the complete contract and Paragraph 18. A quote that is still subject to underwriting, inspection, roof documentation or lender review may not establish that coverage has been secured.
A crucial distinction
Wind, water and rising floodwater may involve different coverage.
“The house has insurance” does not answer every hurricane-related coverage question.
Damage covered by the property policy
Homeowners’ coverage commonly addresses hazards such as fire and theft, while windstorm protection may be included, separately issued or subject to special deductibles. The declarations page, endorsements and exclusions control.
Damage caused by flooding
Standard homeowners’ policies generally do not cover flood damage. Flood protection is typically obtained through an NFIP policy, a private flood policy or an eligible endorsement—and may be required by a lender or by Citizens eligibility rules.
Before the insurance deadline
Move underwriting questions into the inspection period.
Florida insurance problems often originate in the roof, electrical, plumbing or wind-mitigation details—not simply the flood-zone label.
Buyer review
- Confirm which Addendum H boxes are selected and whether each premium cap is stated in dollars or as a percentage.
- Request written quotes early and disclose the intended occupancy, loan type and property use accurately.
- Ask whether a four-point, wind-mitigation, roof certification, elevation certificate or other report is required.
- Compare deductibles, coverage limits, exclusions and effective dates—not premium alone.
- Verify that the lender accepts the carrier, policy form and coverage amount.
- If relying on cancellation, deliver written notice through a contract-authorized method before the deadline.
Seller preparation
- Gather available roof permits, replacement invoices, wind-mitigation reports and prior insurance documentation.
- Expect insurers to evaluate roof age, plumbing, electrical panels, water heaters and property condition.
- Do not represent that the property is insurable merely because the seller currently has a policy.
- Consider how an older roof or unresolved inspection issue could affect multiple buyers—not only the current offer.
- Review any proposed repair, credit or price change in relation to both contract rights and actual underwriting requirements.
- Put negotiated changes in a signed written amendment.
“I received a quote, so the insurance contingency is finished.”
Common misconception
A preliminary quote may still have conditions.
A premium estimate can change after underwriting reviews inspections, roof documentation, replacement cost, claims information or other property details. The carrier may also require repairs or decline to bind coverage.
Addendum H focuses on the buyer’s ability to secure the selected coverage within the negotiated first-year premium limit. Buyers should confirm the policy can be bound, meets lender requirements and will be effective when needed—not rely only on the first number provided by an agent or online portal.