Alyssa Lane
Shopping for homeowners insurance in Florida can be a challenging task. The state's frequent natural disasters, including hurricanes and windstorms, have led to rising insurance rates and even the exit of some insurance companies from the market. Floridians need to navigate a complex insurance landscape, with limited options and increasing costs. This guide will help homeowners in Florida understand the market, find the best insurance providers, and secure adequate coverage for their homes. We will also explore strategies for saving money and discuss the importance of shopping early and comparing quotes to get the best rates in this challenging insurance environment.
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What You'll Learn
Understand what's covered and what's not
Understanding what is covered and what is not under your insurance policy is crucial. Homeowners' insurance covers damage or loss by theft and against perils, which can include fire, and storm damage. It also may insure the owner for accidental injury or death for which the owner may be legally responsible. The standard homeowners' insurance policy is divided into several components. While homeowners' insurance can specifically refer to the insurance of a house, it also encompasses the insurance of other types of structures associated with personal residences, including tenants (renters) and condominium unit owners.
The basic type of homeowners' insurance covers ten perils: fire or smoke, explosions, lightning, hail and
Most homeowners' policies provide windstorm coverage, except for those located in coastal areas. If you're unable to obtain a home insurance policy that covers windstorms, you can try the Citizens Property Insurance Corporation, a state-backed insurer of last resort with restrictions. Flooding is also not typically covered under a homeowners policy. If you're concerned about flooding in your area, a private flood insurance policy or the federal government's National Flood Insurance Program (NFIP), where available, may help protect your property and belongings against flood damage.
Additionally, not all homeowners' policies cover sinkholes. Review your policy to determine if yours does. Sinkhole coverage is available as an add-on and is recommended for those who reside in Florida's sinkhole alley (Pasco County, Hernando County, and Hillsborough County). Sewage back-up or sump pump overflows are also not typically included in standard coverage. Adding water back-up coverage as optional coverage may help in the event of sewage back-up or sump pump overflow due to heavy storms.
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Compare quotes from multiple companies
Comparing quotes from multiple companies is a smart way to ensure you’re getting the best coverage for the best price. It can be a daunting task with so many companies offering different rates and coverage, but there are a few simple steps to ensure you get the most competitive insurance quotes.
Firstly, get quotes from multiple companies. This will give you an idea of the rates and coverage available in the Florida insurance market. You can do this yourself by filling out forms online, or you can use an insurance agent to do this for you. An independent agent can get quotes from multiple companies, but they will only be able to give you quotes from the companies they represent. An exclusive agent, on the other hand, works with only one insurer. You can also use an online comparison tool to quickly compare quotes from multiple providers. Progressive's HomeQuote Explorer®, for example, lets you instantly compare homeowners insurance rates and coverages from multiple companies in Florida.
When comparing quotes, make sure you are comparing like-for-like. This means looking at the same coverage levels and deductibles for each quote. You can then start comparing them side-by-side.
It is also important to research the insurance company you are considering. Make sure they are reputable and have a good track record. You can read customer reviews to get an idea of how they handle claims and customer service.
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Discounts and add-ons
When shopping for homeowners insurance in Florida, it's important to consider the various discounts and add-ons available to get the best value for your needs. Here are some key points to keep in mind:
Discounts
Many insurance providers in Florida offer discounts for bundling home and auto insurance policies, as well as for installing security systems, alarm systems, and safety features like automatic sprinklers and cameras. You may also qualify for discounts if your home meets Florida's Wind Mitigation criteria or has a Florida Building Code-certified roof. Additionally, some companies offer discounts for quoting in advance, purchasing a new home, or switching from a current renters insurance policy. Paying for your 12-month policy upfront can also earn you a discount.
Add-ons
In a state like Florida, where natural disasters such as hurricanes, floods, and windstorms are common, it's essential to understand what your standard policy covers. You may need to purchase additional coverage for disasters like flooding, hurricane damage, and sinkholes. For example, flood insurance can be purchased through the National Flood Insurance Program (NFIP) or private insurance companies. Similarly, while windstorm coverage is typically included in homeowners insurance, those in coastal areas may need to explore other options, such as the Citizens Property Insurance Corporation. Earthquake insurance is another add-on to consider, although earthquakes are rare in Florida.
When reviewing your policy, pay close attention to deductibles and exclusions. For instance, a standard policy may not cover windstorms or hurricane-related flooding. You may need to purchase a separate policy or add-on to ensure comprehensive protection.
It's always a good idea to compare rates and coverages from multiple insurance companies to find the best fit for your needs. Remember that your location, type of home, and coverage limits will impact the cost of your homeowners insurance.
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Flood insurance
Flooding is common in Florida due to storm surges, high average rainfall, and low, flat terrain. Flood insurance is a separate policy from homeowners insurance, and it is important to protect your home, business, and possessions. Flood insurance covers losses directly caused by flooding, including damage to buildings and their contents. It is available to anyone living in one of the 22,600 participating NFIP communities.
The National Flood Insurance Program (NFIP) is managed by FEMA and delivered to the public by a network of more than 47 insurance companies and the NFIP Direct. The NFIP provides flood insurance to property owners, renters, and businesses, helping them recover faster when floodwaters recede. The program offers two types of coverage: building coverage and contents coverage. The cost and extent of coverage depend on where you live, the type of house, its age, and how it is built and arranged.
To purchase flood insurance, you can get a quote with the NFIP Quote Tool and then share the quote with an agent or call your insurance company. Remember that there is typically a 30-day waiting period for an NFIP policy to go into effect, so plan ahead.
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Wind mitigation and hurricane coverage
Florida is no stranger to hurricanes, and when those storms hit, they can cost insurance companies a lot of money. To account for this added risk, Florida home insurance companies typically charge higher rates. While you're automatically covered for wind damage in a standard HO-3 policy in Florida, you do have the option to exclude it to save on premiums. Although Florida is a high-risk state for wind damage, insurance companies must include wind coverage.
Wind coverage is included in Florida home insurance, but you can opt out. Most homeowners policies provide windstorm coverage, except for those located in coastal areas. If you're unable to obtain a home insurance policy that covers windstorms, you can try the Citizens Property Insurance Corporation, a state-backed insurer of last resort with restrictions.
Living in a higher-risk area can significantly increase your insurance costs, but there are still ways to save. Several state-run programs can assist homeowners in lowering their costs, such as programs designed to help homeowners offset their risk of windstorm damage. In addition, Florida requires that insurers offer windstorm credits, which are essentially discounts for making home improvements to mitigate wind damage. You may also be able to carry a higher windstorm insurance deductible in exchange for a lower rate, but remember that a higher deductible means more expenses are paid out of pocket in a claim situation.
By Florida law, any homeowner with wind and hurricane-resistant features is entitled to wind mitigation credits, enabling them to receive a discounted insurance rate for windstorm coverage. You could earn credits for:
- Having plans in place for securing outdoor objects, such as dog houses, garbage cans, and picnic tables in the event of a storm
- Bolting manufactured housing to the foundation using anchor bolts
- Roof covering, roof deck attachment, roof-to-wall connection/attachment, opening protection, roof shape/geometry, and secondary water resistance
A wind mitigation inspection may be required as many lenders require Windstorm/Hurricane coverage when financing a home. While it is not required by the state for property insurance in Florida, it can yield savings if your policy includes wind loss. A qualified and/or licensed inspector must complete the Florida Wind Mitigation Form to qualify for the policy discount.
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Frequently asked questions
Chubb, Amica, and USAA are among the best home insurance companies in Florida. However, USAA is only available to those affiliated with the military. Allstate is another good option and offers specific discounts to Floridians.
Homeowners insurance is not required in Florida unless you're financing your home through a mortgage lender. However, it's crucial to protect your home and family from the unique risks of the Sunshine State, such as hurricanes, floods, and windstorms. Before shopping for insurance, take the time to understand how to read a home insurance policy and familiarize yourself with terms like replacement cost coverage and actual cash value coverage.
Windstorms, flooding, and earthquake damage are not always covered under a standard homeowners insurance policy in Florida. You may need to purchase separate policies or add-ons for this type of coverage.
You may qualify for credits or discounts on your homeowners policy if your home meets Florida's Wind Mitigation criteria. Additionally, some companies offer discounts for bundling home and auto insurance, having a newer home, or installing a home security system.
Consider purchasing Scheduled Personal Property coverage for high-value or sentimental items to ensure they're well-protected. Opting for a higher deductible can also lower your premium, but it means higher out-of-pocket expenses in case of a loss, so it's wise to create an emergency fund.
