Best Home And Auto Insurance Carriers In Florida

Florida residents have several options when it comes to home and auto insurance. However, insurance rates in the state are skyrocketing due to frequent natural disasters, litigation expenses, inflation, and supply chain issues. Many insurance companies have raised rates, stopped selling policies, or gone out of business.

Some of the largest home insurance providers in Florida include Universal Property, State Farm, Tower Hill, Florida Peninsula, and Citizens Property Insurance. Citizens Property Insurance is a government entity that serves as an insurer of last resort for those who cannot obtain coverage elsewhere.

When it comes to auto insurance, major providers such as Progressive and Farmers Insurance have stopped selling new policies in Florida. However, other companies like State Farm and Nationwide continue to offer coverage.

It is recommended that Florida residents shop around and compare quotes from multiple insurance companies to find the best rates and coverage options.

Home insurance in Florida is expensive because of hurricanes and excessive litigation

Home insurance in Florida is expensive, with the average cost of $3,391 per year, 24% higher than the national average. However, in South Florida, near the coast, premiums are closer to $6,000 annually. This is due to the high risk of hurricanes in the state, as well as issues with excessive litigation and fraud.

Florida is prone to hurricanes, tornadoes, and wildfires, which can cause severe damage to homes and lead to high numbers of insurance claims. As a result, insurers hike premiums to cover the cost of these claims. In addition, the state has experienced a population boom, increasing the cost of living and insurance premiums.

Another factor contributing to the high cost of home insurance in Florida is excessive litigation and fraud. The state has a high number of lawsuits, which has increased operating costs for insurers. This is partly due to fraud related to roofing claims, where contractors offer "free" roofs to homeowners and then file inflated claims with insurance companies. These fraudulent lawsuits have contributed to the financial instability of insurance companies, leading to some companies leaving the state or increasing premiums.

To combat these issues, Florida has implemented several reforms, including limiting solicitation by contractors and banning assignment of benefits forms, which previously allowed contractors to file lawsuits on behalf of homeowners. These measures aim to reduce fraudulent claims and stabilize insurance premiums. However, it may take time for the effects of these reforms to be seen, and in the meantime, homeowners in Florida continue to face high insurance costs.

Citizens is the state's insurer of last resort

Florida's insurance market has been in turmoil, with several insurers leaving the market, dropping risky policies, and tightening eligibility requirements. Citizens Property Insurance Corporation, a not-for-profit, tax-exempt government entity, serves as the state's insurer of last resort. It was established by the Florida Legislature in 2002 to provide property insurance to eligible Florida property owners who are unable to obtain coverage from private insurers.

Citizens Property Insurance Corporation is committed to promoting access, stabilisation, and market competitiveness for Florida consumers, carriers, investors, and the overall property insurance industry. They strive to ensure that their customers receive service comparable to private-market standards, even though their policies are often more expensive than those of other providers.

The state-backed insurer fills a gap in the private property insurance market, as many banks and mortgage lenders require proof of insurance to issue mortgage funds. This becomes challenging for aspiring or current homeowners in areas with high risks, such as hurricanes, wildfires, high winds, high crime rates, or earthquakes.

Insurers of last resort, like Citizens, play a crucial role in shoring up local economies. While they may require property owners to take basic steps to protect themselves from risks, they also provide a safety net for those who cannot obtain coverage elsewhere. However, state-subsidised insurance plans can distort the actual cost of living in areas affected by climate change and create perverse incentives for homeowners to settle in zones that are increasingly uninhabitable.

Chubb, Nationwide and State Farm are some of the best home insurance companies in Florida

Chubb

Chubb is one of the best Florida home insurance companies in 2024, according to Bankrate. Chubb is a good choice for Florida homeowners with high-value homes or valuable possessions. The company boasts "bespoke" coverage with more than 200 products and services and 48 offices in North America. Policyholders who qualify for a Masterpiece home policy may have benefits like extended replacement cost coverage, which can extend your home's replacement cost limit over 50% above the policy’s dwelling coverage limit, and offers $50,000 in watercraft coverage.

Chubb has the lowest rate of customer complaints in our analysis and a Superior rating with AM Best, which means it’s a financially sound company that most customers are satisfied with. However, as a surplus lines carrier, Chubb's rates are not regulated in Florida.

State Farm

State Farm is the largest U.S. home insurer based on market share. It has local exclusive agents in more than 200 communities throughout Florida, which is convenient for policyholders who prefer doing business in person. State Farm also offers several ways to save on your home insurance. The company offers auto, landlord and umbrella policies, in addition to home insurance.

State Farm has a very low level of customer complaints. Its complaint ratio is 0.35, which is well below the national average of 1.0.

Nationwide

Nationwide offers a variety of ways to customize your policy. For example, you can add coverage for things like identity theft, high-value items and backed-up sewers and drains.

Nationwide charges less than the state average for homeowners insurance. The company offers an average annual rate of $2,480 per year. The company offers a variety of discounts, including one for bundling policies and another for going claim-free for at least three years.

The average cost of homeowners insurance in Florida is $2,625 a year

The Impact of Natural Disasters: Florida is prone to natural disasters such as hurricanes, tornadoes, and floods, which can cause significant damage to homes. As a result, the state has some of the highest insurance rates in the country. The average cost of homeowners insurance in Florida is $3,391 per year, which is 24% higher than the national average. However, in high-risk areas near the coast, premiums can be closer to $6,000 annually.

The Role of Inflation and Population Growth: Inflation and natural disasters, exacerbated by climate change, have a direct impact on insurance costs in Florida. Additionally, a population boom in the state has increased the cost of living and insurance premiums.

The Importance of Comparing Quotes: Comparing quotes from multiple insurance providers is crucial when shopping for homeowners insurance in Florida. By gathering quotes from different companies, you can find the best coverage and price for your needs.

The Benefits of Bundling Policies: Bundling your home and auto insurance policies with the same carrier can often result in significant savings. Many insurance companies offer discounts for customers who bundle their policies.

The Impact of Location: The location of your home can significantly affect the cost of insurance. Homes near the coast or in areas prone to flooding and hurricanes will likely have higher insurance premiums.

The Influence of Home Age and Construction: Older homes and those with wood-frame construction tend to be more expensive to insure. Insurance companies may offer lower premiums for newer homes or those with brick or block construction.

The Significance of Claims History: Maintaining a claim-free history can result in discounts and lower premiums. Insurance companies often reward customers who have not filed any claims in the past three to five years.

The Role of Credit Score: A good credit score can positively impact your insurance rates. Insurance companies may offer lower premiums to individuals with strong credit histories.

The Need for Flood and Wind Insurance: Standard homeowners insurance policies in Florida typically do not include flood insurance. If you live in an area prone to flooding, consider purchasing a separate flood insurance policy or adding flood coverage to your existing policy. Additionally, while wind damage is usually covered, it's important to review your policy carefully to ensure adequate protection.

The Availability of Specialized Coverage: If you own a high-value home or have specific concerns, consider specialized insurance carriers or policies. For example, coastal homes may require additional coverage for windstorms, hurricanes, and flooding.

The Option of Citizens Property Insurance: If you are unable to obtain insurance coverage from private companies, Citizens Property Insurance, the insurer of last resort in Florida, offers coverage to state residents who cannot find it in the private market. However, their policies tend to be more expensive.

By considering these factors and comparing quotes from multiple carriers, Florida homeowners can make informed decisions about their insurance choices and find the best coverage to protect their homes.

Home insurance rates in Florida are rising due to inflation and supply chain issues

Home insurance rates in Florida are rising due to a combination of geographical, legislative, and economic factors. The average cost of home insurance in the state is currently $3,391 per year, but in South Florida, near the coast, premiums are closer to $6,000 annually. This is significantly higher than the national average of $1,700. There are several reasons for the increase in insurance rates in Florida.

Firstly, Florida's geographic location makes it particularly susceptible to hurricanes and other destructive weather events, which drive up insurance costs. The increasing frequency and severity of natural disasters due to climate change have led to more costly claims for insurers, who then pass these costs on to consumers in the form of higher premiums.

Secondly, reinsurance costs, which provide a "shock absorber" for local insurance companies, have increased significantly in recent years due to the impact of climate change on weather patterns. This has contributed to the overall rise in insurance rates in Florida.

Thirdly, litigation and fraud-related issues have also played a role in increasing insurance rates. Florida has a "legal system that invites litigation," and insurance-related lawsuits are common in the state. Additionally, there have been issues with the misuse of assignment of benefits (AOBs), where contractors have solicited unnecessary and fraudulent claims from homeowners.

Finally, economic factors such as inflation and supply chain issues have also contributed to rising insurance rates. The cost of raw materials and construction has increased significantly, and this has a direct impact on the cost of repairing or replacing homes, leading to higher insurance premiums.

Overall, the combination of these factors has resulted in rising home insurance rates in Florida, and it remains to be seen how effective recent legislative efforts to curb litigation and fraud will be in reducing premiums for consumers.

Frequently asked questions