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Florida is a highly desirable place to live in. The Sunshine State has year-round warm weather, over 600 miles of sandy beaches, and a plethora of theme parks. Florida is a family-friendly place for all ages. But, sometimes, a bit of paradise comes with a price. Insurance costs, for example, tend to run higher in Florida. Just how much is homeowner’s insurance in Florida?
The average price of homeowners’ insurance in Florida is just under $2,000 annually. On a national level, this average price is one of the highest. The location, size, and value of your home are among the many variables to consider in the cost of an insurance policy.
Insurance in Florida might be expensive, but the costs vary widely across the state. Keep reading as we explain the nuances of homeowners’ insurance and why it’s so costly in more detail.
Why Is Home Insurance So Expensive In Florida?
Insurance is expensive in Florida because the state is subject to severe threats of natural disasters like hurricanes.
Florida is a peninsula surrounded by water on three sides, making the entire state a target for severe storms. Whether it’s a hurricane, thunderstorm, or hailstorm, these natural disasters can cause serious damage to homes.
According to the Insurance Information Institute, Florida homes incurred damage in six of the ten most costly hurricanes to hit the United States.
What Is The Cost Of Hurricane Insurance In Florida?
“Hurricane insurance” is a bit of a misnomer. It’s a combination of insurance policies that include homeowners, flood, and windstorm. Like other types of insurance, the cost of premiums depends on the value of what you are trying to insure. The part of the state where you reside, the value of your house, and deductibles that you are willing to pay, all contribute to the cost. As a Florida homeowner, you will need to purchase more than one policy to have “hurricane insurance.” The other policies you need to consider are flood and windstorm insurance. We discuss the potential costs of these policies below:
Homeowners’ insurance policies don’t cover floods. Even if the flooding is the result of a storm surge, it won’t be covered. According to FloodSmart.gov, the official website of the National Flood Insurance Program (NFIP), you must contact an insurance agent to determine the exact costs for flood insurance. Premium costs are determined by the amount of coverage needed, the flood zone location, and the age of your home. The average price of a policy is about $550 but can run as much at $2,000 if you live in a high-risk flood zone.
High winds, rain, and hail are a few of the elements that come with hurricanes, tropical storms, and tornadoes. Damaged incurred by one of these events is covered by a supplemental wind policy or a homeowner’s policy that includes wind coverage.
The location of your home is the most significant factor in the price of wind insurance. If you live in Florida’s panhandle, you might pay $900 per year for a policy. Compare that amount to a policy that could cost as much as $4,000 a year if you live in Miami.
For all insurance needs, it’s best to contact a few companies and request quotes. Read the policies carefully to make sure your needs are covered in full.
Is Home Insurance Mandatory In Florida?
Zoecklein Law, a Florida based law firm with a practice area in property damage, states that Florida law doesn’t necessarily require homeowner’s insurance but likely the company that holds your mortgage will. If you decide not to insure your home, your mortgage lender has the right to acquire coverage for your property and charge you for it.
Is Hurricane Insurance Mandatory In Florida?
As we explained earlier in this post, “hurricane insurance” isn’t a single policy. That said, Florida law doesn’t mandate you to carry insurance on your home. But your mortgage lender is likely to require homeowners, flood and windstorm insurance on your dwelling. And, as we mentioned, these lenders have the right to purchase insurance on your home if you don’t. Expect the insurance they are buying to be much more expensive than a policy you could obtain.
It’s best to speak with the insurance experts and make sure to protect your home.
Is Homeowners Insurance More Expensive In FL?
The cost of homeowner’s insurance, on average, is one of the most expensive in the nation. The threat of hurricanes is one of the driving forces behind the expense.
Most of Florida is considered coastal. Even if your home is inland, storm surges can still flood your area. Severe winds from storms can cause all sorts of damage even to your home in the center of the state.
With several millions of homes at risk in Florida, natural disasters are expensive for insurance companies.
What Is The Average Cost Of Homeowner’s Insurance In South Florida?
Insurance on your South Florida home can average as much as $10,000 or more a year for $600,000 dwelling with a $1,500 deductible and $100,000 liability limits. Compare that to the average of $4,000 a year for $200,000 dwelling coverage with a $1,000 deductible and $100,000 liability limits. The average costs depend on the value of your home and where it’s located. And, the value of your home can be a lot more in South Florida than it is in Central Florida. Miami, Fort Lauderdale, and West Palm Beach are South Florida’s main coastal cities. These cities have large populations that sit just a few feet above sea level.
South Florida is comprised of three counties: Palm Beach, Broward, and Miami-Dade. Miami is the largest city in South Florida and one of the most expensive when it comes to insuring a home.
A few factors are in play when it comes to insurance in South Florida, there’s the value of your home, the likelihood of a hurricane hitting your city and the age of your dwelling. In this part of the state, homes tend to be more expensive, with a high probability of a hurricane making landfall. And, if your property is older, it might not have modern protections against natural disasters, which means it will cost more to insure. It all adds up.
It’s best to find a trusted resource to discuss your insurance needs. It’s possible to find discounts by combining policies. And, have an expert inspect your home and recommend improvements against potential damage to help reduce your costs.
You can also move inland to a lower-risk flood zone to reduce expenses. Newer construction that has better protection against the elements might get you a break in premium costs as well. Keep in mind a less expensive home will also be cheaper to insure.
Rental Property Needs Insurance Too
Florida is a popular destination. Perhaps you have an investment property that you rent out seasonally or year-round. You might need additional landlord insurance. But, for the sake of this post, it’s important to remember that you need to protect your property against natural disasters even if it’s not your primary residence. And, your mortgage lender will likely require supplemental insurance to protect against flood and wind damage. Rates will vary depending upon where your property is located.
Protect Your Home
Your house is probably your most expensive investment. It’s also your home, it’s where you live. It’s essential to protect your home with the right amount of homeowners insurance. Premiums are expensive in Florida, and the costs vary widely depending on which city you decide to live.
Find a trusted source and discuss all your potential home insurance needs. When you live in Florida, remember that a typical homeowner’s policy doesn’t necessarily protect your dwelling or assets from a disastrous storm. Serious flooding and high winds can cause a lot of damage that is expensive to repair.
Make sure to get several insurance quotes from reliable sources and read the policies carefully. Have peace of mind while you live in a piece of paradise.