Florida's Favorite Home Insurance

Florida's most popular home insurance companies include State Farm, Chubb, Nationwide, and Citizens. However, the cheapest home insurance company in Florida is Travelers, with an average annual premium of $1,315.

Home insurance rates in Florida

Florida's home insurance rates are notoriously high, with the average cost of insuring a home in the state being $2,625 per year, or about $219 per month. This is 37% more than the national average of $1,915. However, some homeowners in the state are seeing premiums as high as $6,000 per year.

There are several factors contributing to the high cost of home insurance in Florida. Firstly, the state is prone to natural disasters such as hurricanes, tropical storms, tornadoes, and floods, which can cause significant damage to homes and lead to increased claims. The high frequency of these events has also led to an increase in the cost of rebuilding or repairing homes due to rising construction and labour costs.

Secondly, there has been a surge in litigation issues and instances of roof scams in Florida, with the state accounting for 79% of lawsuits against insurance companies nationwide. This has resulted in increased operating costs for insurers, which are passed on to consumers in the form of higher premiums.

Additionally, the recent population boom in Florida has driven up the cost of living and insurance premiums. The state's insurance market has also been impacted by the departure of several major insurance companies, reducing competition and options for homeowners.

To save money on home insurance in Florida, it is recommended to compare quotes from multiple companies, speak to an agent about available discounts, adjust deductibles or coverage limits, and bundle insurance policies.

Home insurance in Florida compared to other states

Home insurance in Florida is more expensive than in other states, with an average cost of $2,625 per year, or about $219 per month. This is due to several factors, including the state's vulnerability to natural disasters such as hurricanes and tropical storms, as well as litigation expenses that insurers pass on to consumers. Florida has 9% of the country's homeowners insurance claims but 79% of lawsuits against insurance companies.

The cost of home insurance in Florida is also affected by inflation and supply chain issues, which have increased the cost of repairing or rebuilding homes. Additionally, the state's population growth has driven up the cost of living and insurance premiums.

While it is not legally required to have home insurance in Florida, lenders typically require it as a condition of a mortgage. Homeowners in Florida should also be aware of the state's unique risks, such as hurricanes and flooding, and consider purchasing additional coverage for these perils.

Compared to other states, Florida has more insurance companies pulling out or raising their rates due to the high risk of storms and litigation. This has left many homeowners struggling to find affordable coverage, with some turning to Citizens Property Insurance Corporation, the state's "insurer of last resort."

Most Popular Home Insurance in Florida

Some of the best and most popular home insurance companies in Florida include:

• State Farm: Offers comprehensive coverage options and discounts, with policies covering the basics like dwelling, personal property, and liability.
• Chubb: Serves affluent policyholders with high-value homes, offering high coverage limits and perks like complimentary property management services for seasonal homes.
• Nationwide: Provides a broad range of coverage options and discounts, including dwelling replacement cost coverage.
• Allstate: Offers coverage for primary dwelling and other structures, with options to expand coverage for valuable possessions.
• USAA: Available only to active and veteran military members and their families, offering basic coverage for homes, related structures, and possessions.
• Liberty Mutual: Offers standard coverage for dwelling, personal property, and personal liability, with flood insurance available through the National Flood Insurance Program.

How to find the best homeowners insurance in Florida

Finding the best homeowners insurance in Florida can be challenging, especially in the state's turbulent property insurance market. Here are some tips to help you find the right coverage for your needs:

• Shop around: Compare quotes from multiple insurance companies to find the most affordable rates and coverage options that meet your needs.
• Work with an independent agent: Independent agents can help you shop for coverage from multiple insurance companies and provide guidance on the best options for your specific situation.
• Consider your coverage needs: Evaluate the unique risks in your area, such as hurricanes, floods, or wildfires, and make sure your policy provides adequate protection.
• Look for discounts: Many insurance companies offer discounts for bundling policies, installing security or safety features, or maintaining a claims-free history.
• Check financial stability: Ensure the insurance company you choose has a strong financial rating from agencies like AM Best or Demotech to ensure they can pay out claims.
• Read reviews: Research customer reviews and third-party ratings from organizations like J.D. Power and the Better Business Bureau (BBB) to gauge customer satisfaction and claims handling.
• Understand your policy: Carefully review the coverage limits, exclusions, and endorsements to ensure you have adequate protection for your home and belongings.
• Consider a FAIR plan: If you're struggling to find coverage in the private market, consider Citizens Property Insurance, Florida's "insurer of last resort."

Hurricane damage and Florida homeowners insurance

Florida is prone to hurricanes, which can cause extensive damage to homes. While there is no specific insurance policy called "hurricane insurance", homeowners can protect themselves by purchasing a combination of insurance policies that cover wind and flood damage.

There is no separate policy known as "hurricane insurance". Instead, hurricane coverage is provided through a combination of different types of insurance policies, including:

• Homeowners insurance: This typically covers damage caused by wind and rain during a hurricane. However, some areas, particularly those along the coast, may require a separate windstorm policy as the risk of damage is higher.
• Flood insurance: This is not included in standard homeowners insurance policies and must be purchased separately, usually through the National Flood Insurance Program (NFIP) or a private insurer.

Generally, homeowners insurance covers hurricane damage from wind and rain. However, this can vary by insurance company and location. In some hurricane-prone areas, such as Florida, Texas and Louisiana, standard homeowners policies may not cover windstorm damage, and a separate windstorm policy is required. It's important to carefully review your policy to understand what is and isn't covered.

Hurricane insurance and flood insurance are not the same. Hurricane insurance typically refers to coverage for wind and rain damage, while flood insurance specifically covers damage caused by flooding, including storm surges. Flood insurance is usually purchased separately and is available through the NFIP or private insurers.

The cost of hurricane insurance in Florida can vary depending on factors such as location, the amount of coverage required, and the insurance company. On average, the cost of homeowners insurance in Florida is $2,625 per year, and the cost of flood insurance is $781 per year. However, these costs can be significantly higher in hurricane-prone areas.

There are several steps homeowners can take to reduce the risk of hurricane damage:

• Install hurricane clips: These steel connectors help to secure the roof and prevent it from being ripped off during a storm.
• Trim trees: This helps to make trees more resistant to strong winds.
• Reinforce the garage door: A reinforced garage door can help prevent flooding and wind damage.
• Clean gutters: Clogged gutters can lead to water damage on the roof and basement.
• Maintain the sump pump: A faulty sump pump can lead to basement flooding.
• Keep the roof in good condition: Regular maintenance and repairs are important as most insurance companies will not insure a home with an old or damaged roof.

Home insurance discounts in Florida

Home insurance in Florida is getting more expensive and harder to find. However, there are still ways to save money on your policy. Here are some of the most common discounts available to Florida homeowners:

• Multi-policy discounts: Most insurance companies offer discounts to customers who bundle their home and auto insurance policies, or add other types of coverage such as pet or life insurance.
• Protective devices discounts: You can often get a discount on your home insurance if you install protective devices such as a home security system or smoke alarms.
• Claim-free discounts: If you have a history of being claim-free for a certain period of time, you may be eligible for a discount on your home insurance.
• Loyalty discounts: Some insurance companies offer loyalty discounts to customers who have been with them for a certain number of years.
• New home credits: If you've recently built or bought a new home, some insurance companies will offer you a credit on your new policy.
• Early shopper, new roof, and new/renovated home discounts: Some companies offer discounts if you buy a policy early, install a new roof, or renovate your home.
• Discounts for reduced risk of wind damage: Florida law requires insurance companies to offer discounts to policyholders whose homes are less likely to suffer wind damage. You can get an inspection to assess your home's risk of wind damage, and if you pass, you'll receive a discount on your insurance.
• Discounts for other risk-reducing measures: You may be able to get a discount on your insurance if you take other measures to reduce the risk of damage to your home, such as adding fire-resistant roofs or gutters.

Frequently asked questions