What Is The Cost Of Homeowners Insurance In Florida?

Purchasing homeowners insurance is necessary because sometimes the mortgage company dictates it and mostly because you want to safeguard your most expensive investment. Having no insurance would mean any loss or damage to property would come from the property owners’ pockets. With homeowners insurance, the financial burden is shared between the insurer and the insured. To that effect, it would be bang on the mark to say, “homeowners insurance is a necessity,” one that will save you from financial misery later.

Florida presents a challenging environment due to its complicated insurance market. The sunshine state is considered one of the costliest in terms of home insurance. The average homeowner’s insurance cost for a $250,000 home or residence is $1,353 per annum, with a monthly premium averaging at $113. 

Florida’s unique location makes it susceptible to cyclones and hurricanes. Its worst-hit areas are the Atlantic and Gulf coasts. Therefore, the rate of insurance in these areas is even higher. Each year, at least one category 3 or higher hurricane hits Florida wrecking damage in billions. Insurance is bound to be complicated in a place where such devastation is considered part of ordinary, everyday life. The insurance companies have to make several large-scale settlements in case of such losses, which can make them bankrupt if due care is not exercised.

1. Homeowners living in areas with a lower risk of hurricanes and cyclones get standard insurance coverage more easily than those living on the coast. Their insurance premiums are also lower than the latter.

2. Many private insurance companies have withdrawn their business from Florida because it presents too high a risk for catastrophic damage. They fear their company will not be able to handle the large pay-outs.

3. Increasing cases of fraud have also added to the turbulent mix adding to the cost of insurance.

There are several factors that affect the home insurance rates in Florida. The most prominent ones are:

1. Zip code of the area where your home is located.
2. Age of the home.
3. Size of the residence.
4. Condition of the home.
5. Home improvements made the home secure during hurricanes and floods.
6. Protective measures are implemented to secure the home against fire and burglaries.
7. Your claim history in context to prior home insurance claims.

As per the law, the insurance companies providing homeowners insurance in Florida have to provide hurricane insurance with the standard coverage. Consequently, keeping in mind the frequency of hurricanes, the insurance companies have a clause mentioning a separate deductible for hurricane-related losses or named tropical cyclones. This hurricane deductible is around 1% to 5% more than the deductible of the base policy.  A good and safe practice would be to buy additional coverage for losses unrelated to tropical storms. This way, all your bases will be well and truly covered.

The insurance law of Florida dictates the insurance companies to provide special discounts on the hurricane windstorm part of the insurance premiums for those homes that have upgraded their property by installing hurricane-resistant features. It includes even measures that reduce the risk of damage like roof straps, window shutters, using wind-resistant building materials, etc.

If you have not made any such upgrades, now might be a good time to set the ball rolling. The upgrades will cost money which you will be able to recover through the insurance discount. All in all, it’s a good deal and makes for a win-win situation for all.

There is a possibility that the private insurance companies deny giving you homeowners insurance coverage. When that happens, all is not lost. You can still purchase the necessary coverage from Citizens Property Insurance Corporation , which is a state-run insurer. As long as you meet its requirements, the state insurer will not deny you the coverage. Although it is considered to be the last resort insurer, yet when no others come to the rescue, you can still secure your property through them.

Every state has its own rules and regulations regarding insurance. These are based on the inherent risk the region provides. So a homeowners insurance policy will have some universal coverage at standard rates, and then the variable portion is added by the risks presented by the area. It will take into account the steps you have taken to counter the risks. For these reasons, the insurance rates differ from state to state and region to region.

There is no standard rate of homeowners insurance that applies to all. It differs from region to region, house to house, and coverage to coverage. Hence, it is almost a guarantee that your insurance policy and that your neighbors will have a different price tag. Whenever you are looking to buy new homeowners insurance in Florida, our best piece of advice is that you either go to a broker or gather quotes from several players in the market before making any final decision.

The experts at Continental Public Adjusters can guide you in purchasing the best homeowners insurance in Florida. Since we deal in claims and settlements, we know what all coverages you should apply for. With our knowledge and experience, you only stand to gain. And when the time comes to file a claim, no matter how big or small, we can expedite matters and ensure that you get the maximum possible settlement. Working in your interest (insured), we ensure that our relationship is mutually beneficial. If you want to talk to us, call us at (800) 989 – 4769 to book an appointment. Established in 1996, we have aided thousands of clients – businesses, as well as condo and homeowners associations, wade through the formidable property claims process. So can rest assured that you are in good hands.