How to save money on home insurance in Florida?
Raise your deductible
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums.
- Get a wind mitigation inspection. ...
- Raise your deductible. ...
- Ask about discounts. ...
- Fortify your roof. ...
- Be strategic if you move. ...
- Lower your personal property coverage. ...
- Upgrade to hurricane clips.
Raise your deductible
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums.
- Qualify for insurance discounts. Getting more discounts that lower your car insurance premium might be easier than you think. ...
- Increase your deductible. ...
- Reduce your coverage. ...
- Compare rates. ...
- Try usage-based insurance. ...
- Take a defensive driving course. ...
- Get a car that's cheaper to insure.
Factors like where you live, your home's replacement cost, and your policy deductible generally affect your home insurance premiums the most.
The average home insurance cost in Florida is $4,218 a year, nearly $1,441 more than the national average of $2,777. These averages are based on the following coverage: $300,000 dwelling coverage. $1,000 deductible/2% hurricane deductible.
The average cost of homeowners insurance in Florida is $2,385 a year, or about $199 a month, according to a NerdWallet rate analysis. And that number is on the rise. Florida home insurance rates have shot up in recent years due to frequent natural disasters and litigation expenses that insurers pass on to consumers.
- Your Dwelling. The replacement value of your home is the biggest single factor in determining homeowners insurance premiums. ...
- Liability & Medical Payments. ...
- Location. ...
- Deductibles.
Unfortunately, paying off your mortgage doesn't reduce homeowners insurance premiums. You will no longer be required to carry home insurance as it isn't legally mandated, but your home will still require the same level of coverage to protect you from financial losses.
- location, age and type of building.
- use of building (residence and/or commercial)
- proximity of fire protection services.
- choice of deductibles.
- availability of any premium discounts.
- scope and amount of insurance coverage.
Why is my homeowners insurance so high in Florida?
Florida homeowners insurance premiums have spiked in recent years. A combination of inflation, natural disasters, and lower competition is to blame. Homeowners can shop around with different insurers and consider raising their deductibles to save money on policy costs.
A new roof can lower your home insurance premium anywhere from 5% to 35% depending on your building materials, location, and insurance carrier. Most homeowners can expect to see their home insurance policy premium reduced by 20% after replacing their roof.
The base rate determines how the company will price policies and weigh rating factors, and must be approved by the Departments of Insurance in the states where they operate. Once the rate is set, it cannot be adjusted again without prior approval, which is why you cannot negotiate car insurance rates.
Many of the defining qualities in older homes also make them riskier to insure, often leading to a higher rate and the need for specialized coverage. If you have an older home, you may still be able to get coverage with a standard homeowners policy.
There is no shortage of reasons your home insurance rates may have gone up, but the likely culprits in 2023 remain higher-than-average labor and construction costs due to inflation and expensive natural disasters.
As inflation increases, insurance companies respond by raising rates. That's because the cost of items in your home will cost more than they did last year. As the price for appliances and equipment escalates, rates will adjust as well.
Chubb offers the cheapest homeowners insurance in Florida, with an average annual premium of just over $1,750. Inflation and natural disasters, which are made worse by climate change, all impact Florida homeowner insurance costs.
Home Insurance Costs for a $400K House by State
For instance, in a state like Florida, which is prone to hurricanes and floods, the average cost of home insurance for a $400,000 home with $500,000 in dwelling coverage is $13,854 per year — $9,427 more than the national average.
The Insurance Information Institute has projected that property insurance rates in Florida could surge by up to 40% in 2023 due to inflation and the continuing impact of severe weather events. Florida's insurance rates are nearly four times the national average.
What company has the cheapest homeowners insurance?
| Company | Forbes Advisor rating | AVERAGE ANNUAL COST |
|---|---|---|
| Westfield | 5.0 | $1,164 |
| USAA | 5.0 | $1,243 |
| American Family | 5.0 | $1,251 |
| Nationwide | 5.0 | $1,309 |
In the most recent 2020 J.D. Power Auto Insurance Study, Allstate claimed the top spot for highest overall customer satisfaction in Florida.
Having a poor credit rating is likely to increase your home insurance rates in most states, but some insurance carriers may weigh credit less heavily than others. In addition to credit history, your home's characteristics, claims history and marital status can all impact your premium.
Several factors can make insurance premiums higher than what a homeowner would prefer. Some factors you have some control over, such as choice in deductible limit, additional coverages and material enhancements. Others, such as square footage, age of the home and location, are much more complicated to change.
By increasing your deductible on your homeowners insurance, it's quite possible that, within a few years, the savings on the insurance policy would be greater than the difference in the deductibles. This savings will be even greater in future claim-free years.
