Best homeowners insurance in Florida (August 23)

Wondering how to go about shopping for homeowner's insurance in Florida? We break down everything you may need to know about it in this review - including the rates, the best home insurance companies, types of disasters to include, and more.

Florida home insurance: What you need to know

The Sunshine State is one of the best places to settle with family or even own a second home! However, before you do so, make sure you take out a comprehensive Florida home insurance policy - one that doesn't leave any room for error.

The home insurance premium for each individual can vary based on factors like:

• Type of residence (primary, secondary, or seasonal)
• Number of full-time residents
• Built up area in sq ft
• Year built
• Number of rooms and stories
• Building material
• History of home insurance claims

However, the average Floridan pays nearly $2200/year as premiums on home insurance. Unlike auto insurance, state laws don't govern homeowners insurance. As a result, the cost will depend on the value of the items and structures covered by the policy.

Because of the possibility of damage from natural disasters, premiums in Florida are generally on the higher side. Hurricanes, tropical storms, tornadoes, and floods can wreak havoc on private property. It's no surprise that Florida home insurance premiums are roughly 44% higher than the national average.

What does a homeowners insurance policy cover?

A homeowners insurance policy is used to safeguard your home and reduce costs if you incur damage from issues like theft, fire, natural hazards, and more. Depending upon the kind of weather and terrain in your state, it could even cover sinkholes, earthquakes, rodents and vermin, bird infestations, etc.

Here are the broad categories of coverages included in Florida home insurance:

• Dwelling protection: This covers pays for the repair/restoration of any damage to your home's structure or exterior due to the hazards mentioned in the policy. It could also include secondary buildings like a garage/deck.
• Liability protection: This category of homeowners insurance covers any harm that may befall someone living in your house. For example, if a visitor gets an electrical shock from one of your plug points, then you can pay their medical bills through this. It also covers the costs of settlements, judgments, and legal defense if you get sued.
• Other structures protection: It covers the cost of repairing standalone buildings that are not attached to your house but still part of the private property (like sheds, fences, or a barn)
• Personal property protection: This coverage pays to restore or replace your personal belongings in a covered event like theft or fire. Your possessions may include furniture, clothing, accessories, electronics, jewelry, and other things.
• Medical payments to others: It take care of minor medical claims made by those not living in your home, regardless of fault. For instance, medical payments insurance could cover minor medical costs if a visiting friend or colleague falls on your deck's steps. The quantity of coverage is minimal, starting at just $1,000.
• Additional living expenses: It covers additional costs like a hotel stay, restaurant meals, and other necessary services, including storage, if you cannot reside in your home due to a situation covered by your policy (such as a tornado).

What risks are covered by a standard Florida home insurance policy?

The major risks covered by a standard homeowner's insurance policy in Florida include:

• Damage or loss by theft
• Structural damage due to fires
• Plumbing/water leaks
• External/interior damage from fallen trees
• Water leakage from air conditioning systems and water heaters
• Damage from natural disasters like tropical storms, hurricanes, wind

Perhaps the most important risk to be taken into account has to do with hurricanes. Florida is the most hurricane-prone state in the US, with destructive hurricanes making landfall almost every two years.

If you choose to have hurricane/windstorm coverage in your home insurance policy, you may have to pay a certain amount as 'hurricane deductible.' This ranges from between 2-10% and is usually included for policies in hurricane-prone areas. For instance, if the $300,000 cap on your home insurance and your deductible is 5%, your financial obligation would be $15,000 instead.

What is not covered by a typical homeowners insurance policy in Florida?

Though it varies based on the insurer, typical Florida home insurance policies do not cover:

• Flooding
• Sinkholes
• Earthquakes
• Losses due to power outage
• General wear and tear
• Vermin and pest infestations
• Purposeful loss
• Damage due to war

The cheapest home insurance companies in Florida

Your first instinct when looking for home insurance is to find companies offering the lowest rates possible! According to our research, Tower Hill provides the cheapest Florida home insurance with an annual rate of $1250. Nationwide comes a close second with the average premium clocking in at $1475.

However, the cheapest rates don't always mean the best coverage. We'd recommend getting quotes from multiple companies, comparing their features, and only then making a decision.

The best homeowners insurance in Florida for those with poor credit

Not everyone will be able to qualify for low rates on Florida home insurance. Companies will take a detailed look at your credit history for any missed credit card payments, late bill payments, and overall consistency. The higher your credit score, the better rates you'll get on your home insurance policy.

Poor credit scores may seem risky, but that doesn't mean it's impossible for you to get homeowner's insurance. Take a look at the average rates given to some poor credit applicants below:

Homeowners Insurance deductibles in Florida

A deductible is a certain amount that you agree to pay from your pocket in order to qualify for lower home insurance rates. In disaster-prone areas like Florida, companies always insist on a minimum deductible amount because they may not be ready to bear the entire cost of damages.

Ideally, the higher your deductible, the lower will be your premium. However, ensure that you set your deductible limit at an affordable level. You don't want to end up paying too much out of your pocket when you claim damages.

Here are the home insurance premiums in the state by deductibles.

Florida homeowners insurance costs by city

While the average cost of home insurance in Florida is $2200/year, be mindful that it can increase or decrease depending on which city you are in. Cities in coastal Florida are more prone to hurricane damage and hence charge higher insurance premiums.

Besides, there could also be variations within cities depending on ZIP codes, crime rates, number of insurance claims from certain neighborhoods, etc. Here are the average home insurance rates in some Florida cities.

Home and auto insurance bundling in Florida

Did you know that combining your home and auto insurance policies in Florida can help you save on both? This makes you eligible for multi-policy or multi-line discounts which can result in 10-20% savings!

Home Insurance Discounts in Florida

You can further reduce your home insurance premiums by using any of the several discounts that companies offer applicants. However, not all companies offer every kind of discount.

It's up to you to ask for and apply for available discounts. Some popular home insurance companies and their discounts are given below.

Comparing Common Features Across Top Insurance Companies

Are you planning to buy the best homeowners insurance in Florida? Then there are some features you must look into.

Common Causes of Home Insurance Claims in Florida

Because Florida is located near both the Gulf of Mexico and the Atlantic Ocean, it has two coastlines that are very susceptible to storms. Out of roughly 300 hurricanes that have occurred in the US since 1851, Florida has been hit by nearly 120.

Depending on the severity of the storm, the state of Florida encounters economic losses of between $5-10 billion each year.

Therefore, it is necessary to buy a comprehensive, disaster-proof home insurance policy that covers all the risks associated with living in a state like Florida.

Natural disaster coverage in Florida

Do homeowners insurance cover tornadoes in Florida?

In Florida, most home insurance policies cover tornado damage. Tornadoes are classified as windstorms by the insurance industry, which is usually covered under your standard home insurance policy.

However, it's best to look at the fine print of the policy to ensure you get compensated for exterior and interior losses. Depending on your coverage type, interior damage may only be protected when it results from exterior damage, such as a broken window. The average level of coverage for detached buildings is 10% of the value of the insured home.

Does homeowners insurance cover hurricanes in Florida?

Yes, most home insurance companies in Florida are required to cover storm damage if it is classified as a hurricane by the National Weather Service . However, damages from a 'tropical storm' will not be covered - you may have to get additional windstorm insurance to recoup financial losses.

Does homeowners insurance cover floods in Florida?

Typically, flood insurance is not included under Florida homeowner's insurance - even if it occurs as a result of a hurricane or tropical storm. We recommend purchasing additional protection via the National Flood Insurance Program (or a private flood insurance provider).

Private flood insurance policies may offer different levels of coverage; however, if you purchase via the NFIP, you will get the following coverages.

• 25,000 for structural coverage
• $100,000 for personal property coverage

Factors that affect home insurance rates in Florida

Are you planning to buy Florida home insurance? Then consider these factors before buying one!

• Your location: The cost of homeowners insurance in Florida is greater for homes in high-crime zones. Insurance costs are also greater for homes in hurricane-prone regions, such as Gulf Coast communities.
• Rebuild rate: Your home insurance rate may be affected by building supplies and labor costs in your neighborhood.
• Age/condition : Insurance for newer, well-maintained properties is lower than for older ones.
• Claims history: Homeowners with a history of making house insurance claims frequently face higher insurance premiums.
• Credit history: Your credit score is a criterion that many insurance companies consider. Premiums for homeowners with bad credit are frequently higher.
• Dog breed: Be ready to pay a higher Florida home insurance cost if you buy a dog that your insurance company classifies as a 'dangerous breed.'

Tips for Buying Homeowners Insurance

• Assess your rebuilding costs: Ask your insurance agent or a reliable builder how much it would cost to rebuild your house using local labor and fair material rates. You should have at least this coverage for your home, if not more.
• Review the advantage of replacement cost over actual cash value: Think about getting replacement cost coverage for your house and possessions. You'll obtain the money you need to buy new ones to replace your old ones. You will receive a depreciated amount if you use actual cash value.
• Consider add-on coverage for your expensive items: Consider scheduling personal property for high-value things like expensive gadgets, sports, or musical instruments, as well as antiquities, if you have any. You can fully compensate them with this coverage.
• Evaluate your liability coverage needs: Find out how much liability insurance you require. Choose at least $300,000 or a sum that would cover the potential loss in the event of a lawsuit.
• Assess coverage gaps: Some house insurers provide extra benefits, like greater limits for landscaping items like trees and shrubs. It provide coverage in the case they get damaged in a covered incident or assistance with paying for damage from water or sewer backups.
• Check financial ratings: Verify the financial strength rankings by organizations like AM Best and Standard & Poor's. You may not be eligible for a mortgage from some firms unless your insurer has a financial strength rating of at least 'A.'
• Ask for discounts: Make sure you're taking advantage of all the discounts you qualify for. For instance, you might be eligible for a discount if your home has particular security measures or if you have your home and auto insurance from the same provider.
• Compare quotes from multiple insurance companies: The cost of a single Florida home insurance policy might vary greatly amongst insurance providers. You won't know how much you might save if you don't compare prices.

How to Get Florida Home Insurance with Way.com

An average home insurance cost in Florida costs you around $2200/year. However, getting low rates and a comprehensive home insurance policy at the same time can be a challenge if you don't know where to look! Don't fret - Way.com can help you find, compare, and buy the best home insurance policies in Florida.

You can visit the Way.com website or app to find the most affordable Florida home insurance rates and get free quotes. Furthermore, our Florida insurance agents can help you understand the state's complex laws, insurance terms, and discounts!