(WTXL) - A new law aims to create transparency between homeowners and insurance companies about what is covered and mostly importantly what is not.
Now homeowners insurance policies must contain specific language in a large, bold font in an effort to avoid confusion by policy owners.
Jeff Grady, President of the Florida Association of Insurance Agents, said the biggest misunderstanding is around what type of water damage your policy covers.
"That's when you have a busted pipe, or a tree falls through your roof and the water comes in, that's all water from above. Rising water is considered a flood and it's sold through the federal government," said Grady.
The law went into effect Jan. 1. It also includes these new rules for health, life, sinkhole, and other insurance policies.
