Homeowners Insurance in Florida

With more than 825 miles of beach, Florida has much to offer Sunshine State residents. Each homeowner can invest in homeowners insurance to protect their investment. The flip side is that Florida is subject to many hurricanes, tornadoes, landslides, earthquakes, and flooding. These types of disasters can devastate property, resulting in costly claims and insurer losses.

Homeowners insurance protects you and any lienholders from catastrophic perils that may damage or destroy your home. Along with numerous claims for natural disasters, Florida homeowners also file claims for miscellaneous property damage, lightning, fire, theft, vandalism, and water damage from burst pipes and faulty plumbing.

Although Florida homeowners insurance is not legally required, experts strongly recommend that property owners have it. If you have a mortgage, your lender will require it until you pay off the loan. They will also set your coverage limits for you. They typically escrow the premiums paid through your mortgage payment and then pay the policy each year to ensure it stays current. They protect their investment when loaning you the money to buy your home in Florida.

The national average for homeowners insurance is $2,728 yearly or $227 monthly. Florida residents pay an average of $8,770, which is grossly above the national average due to such frequent turbulent weather.

Every state has different insurance providers and types of coverage. Each carrier can decide whether or not to operate within the state. Insurers are picky when it comes to Florida because of the potential perils. The types of coverage available include:

Florida insurance providers strongly recommend that homeowners also add coverage for floods, which is extra and only offered by some insurance companies. You should also consider an umbrella policy to fill in any gaps in coverage.

FEMA (Federal Emergency Management Agency) manages the National Flood Insurance Program (NFIP) through a network of 50 providers across the U.S.

Since most homeowners insurance does not cover floods, this supplemental coverage can repair damage and replace items after a flood. It can cover the building and/or your personal belongings, depending on your options. This program is available to homeowners, renters, and businesses. Learn more about the program on FEMA's website.

Climate change and severe weather events are the number one drivers of home insurance rates today. This fact is clearly illustrated by the frequent disasters in Florida and the enormous rate increases. Across the U.S., homeowners insurance rates have spiked by 34% and as much as 60% in some areas. In Florida, rates have increased by an average of 43.2%, much more than in most states.

Florida is prone to abundant hurricanes, tornadoes, landslides, earthquakes, and flooding, making it risky for insurers. Just one claim for water damages costs insurance providers $11,650. A fire or lightning claim costs an average of $77,340, and hail and wind damage costs $11,695. From 2015 to 2019, insurance carriers in Florida lost $6,482,582,800. Florida tops the list of states with the most lightning claims in 2021, with 5,339 claims costing $88,300,000. Florida also tops the list of states with the most claims for hurricane damage. Florida residents also file many claims for dog bites, 2,026 with an average claim of $59,561. From 1980 to 2024, Florida had 89 billion-dollar disasters.

With home insurance premiums rising, especially in places like Florida, residents must find ways to save money. Some of the factors that impact your homeowners insurance cost include:

Some ways to save on home insurance in Florida include:

• Avoid High-Risks: Avoid adding anything to your home that adds risk, and eliminate those you can to save money.
• Bundle Your Policies: Bundle your home and auto insurance together with the same provider, and they will give you a discount.
• Make Your House Stronger: Reinforce your roof, windows, and siding to make your house more weather-resistant, and you could save on your premiums.
• Improve Your Credit: Improve your credit score and ask your agent to re-evaluate your rates based on the new higher score.
• Add Home Security: Install a home security system to make your house safer and reduce rates.
• Increase Your Deductible: The more you increase your deductible, the lower your premiums.
• Ask for Discounts: Ask your agent for any discounts that might apply to you.
• Don't File Small Claims: Don't file any small claims; wait for bigger things.
• Compare Quotes: Compare quotes before deciding who to sign up with.

Florida homeowners insurance protects your home against damage and destruction due to specific perils. A peril is something that causes destruction or injury, and some examples include tornados, floods, hurricanes, and even tree branches falling on your house. Most policies include dwelling coverage, personal property, liability, medical payments, and loss of use. Customers choose limits, and anything beyond those limits will not be covered.

You can get a policy easily by finding a provider and then contacting them by phone or online through their website. You can also find a local agent to help you decide on coverage limits and set you up. You must pay the first year in advance, and then after that, you can pay through your mortgage escrow or once a year.

Most providers offer the following standard discounts:

• Claims-Free Discount: Stay claims-free for as long as you can, and you should pay less than someone with claims.
• Early Quote Discount: Get quotes in advance and earn a discount on your insurance.
• Fire-Safety Discount: Install fire safety features like sprinklers, fire extinguishers, and smoke alarms to earn a discount on your home insurance.
• Security/Smart-Home Discount: Install a security system or smart home devices that monitor for issues and earn a discount on your insurance.
• New Home Discount: New construction homes earn discounts of up to 40% off.
• Non-smoker Discount: Non-smokers pay less on home insurance than smokers due to reduced fire risk.
• Location-based Discount: Some locations earn discounts for being low-risk and safer.
• Bundling Discount: Bundle multiple policies together with the same carrier for a discount.
• Senior Discount: Most providers offer seniors a discount on their home insurance.
• Military Discount: Military members are eligible for homeowners insurance discounts.
• Veteran Discount: Vets also get discounted rates on home insurance.
• Loyalty Discount: When you stay with the same company for many years, they often discount your rates as a thank you.
• Paperless Discount: Sign up for paperless statements and receive a home insurance discount.
• Auto-Pay Discount: Most providers offer a small discount for auto payments.

Common Rates Offer by Homeowners Insurance Firms

New homes cost far less to insure than older homes. In some cases, homeowners cost as much as 40% less, and homes five years or younger cost about 26% less. In Florida, new construction homes cost roughly $4,234. However, your actual premium will depend on your age, credit profile, claims history, and other factors.

Top 10 Home Insurance Firms in Florida and Average New Home Savings

Home upgrades can drastically enhance your living space, make more room for everyone, and help you love your home again. However, home renovations can also significantly impact your home insurance rates. Some updates increase value and your rates. Others increase or reduce risk, affecting your rates. Still, others have no net effect by essentially doing both.

Home Renovations that Increase Rates

Some home renovations that increase your rates include:

• Luxury Upgrades: If you upgrade your kitchens or baths with high-end fixtures, appliances, flooring, and countertops, your home insurance will increase because it will cost more to rebuild after a qualifying event.
• Fireplace: Fireplaces add warmth and coziness to your home but also increase your fire risk and raise your rates.
• Metal Roof: Metal roofs can be more robust in the event of a storm, but they are expensive to replace, and your rates will increase if you add one.

Home Renovations that Decrease Rates

Some home renovations that decrease your rates include:

• Weather-Resistant Materials: Adding hurricane shutters, shatterproof windows, and stronger siding will make your home safer in a natural disaster and decrease premiums.
• Home Security: Install a sound home security system to keep your home safer from break-ins and vandalism, and your agent will reward you with a discount.
• Fire Safety: Install smoke alarms, sprinklers, and fire extinguishers to lower your fire risk and your rates.

Typically, upgrading your siding will enhance your house's resilience and lower your premiums, but your rates will most likely increase if you use expensive materials.

Voluntary home upgrades are not covered by homeowners insurance. Your policy only covers damage and destruction due to a covered peril, such as a windstorm or fire. Other things not covered are rodents, animal damage, and pest infestations.

Always discuss any renovations with your insurance agent before starting work. They can help you understand how the project will affect your rates and coverage and if any changes are necessary.

Renters insurance is homeowners insurance for renters. It does not include any dwelling coverage, but it does include personal property coverage replacing your items after a qualifying event like theft, windstorm, fire, or vandalism. Most policies also include liability coverage, medical payments, and loss of use. Your policy will have limits, and expensive items like jewelry, furs, and collectibles won't be covered.

Some of the items renters insurance will replace are:

Insurance providers price renters insurance based on three concepts; they are as follows:

Florida renters pay an average of $13.92 monthly, or $167 a year. The national average is between $15 and $20 a month, but Florida renters pay less than the national average.

Condo insurance is for condo owners and is a slightly different type of homeowners insurance. Condo associations have master policies that protect the dwelling. After a covered disaster, that insurance will pay to replace the building and restore it to its original condition (when it was first built). However, that may not include any upgrades to flooring, appliances, kitchens, and baths made by subsequent owners. Condo insurance (AKA HO-6) restores the condo's interior back to its most recent condition with all the updates. Condo insurance also includes liability, medical payments, personal property, loss of use, and loss assessment coverage.

Unlike renters insurance, condo insurance has dwelling coverage, but it only covers the interior, referred to as "walls-in". Plus, the liability insurance only covers people who are injured inside the condo, not outside or on common grounds.

After a fire, windstorm, theft, or other disaster, condo insurance pays to replace the following items:

• Appliances
• Flooring
• Interior Walls
• Wiring
• Plumbing
• Light Fixtures
• Cabinets
• Countertops
• Personal Belongings

The average Florida condo owner pays roughly $94/month or $1,130 a year, which is much higher than the national average of $625. An average policy typically covers $60,000 of personal property, $300,000 of liability, and a $1,000 deductible.

Some ways to save on condo insurance include:

• Raise Your Deductible
• Review and Adjust Your Policy Every Year
• Improve Your Credit
• Stay Claims Free
• Shop Around for the Best Rates
• Bundle Policies
• Improve Home Security
• Install Fire Safety Devices
• Ask for Discounts
• Remain Loyal to the Same Provider

Florida leads the nation in homeowners insurance-related litigation, accounting for 79% of the lawsuits nationwide. Much of the reason is due to roof-related scams and hurricanes. Because of this, many providers have pulled out of Florida, leaving residents with few options for coverage. In 2022, insurance providers lost substantial money from Hurricane Ian. These catastrophic losses have caused much concern about the future of Florida home insurance.

Florida residents suffer from many natural disasters, including hurricanes, tornadoes, landslides, earthquakes, and flooding. These frequent events are wreaking havoc with the homeowners insurance industry, and if the trend continues, some providers will have to limit coverage or cancel high-risk customers.

No federal agency regulates the insurance industry. Instead, each state appoints an agency to monitor providers and rates, investigate customer complaints, and sanction guilty firms. In Florida, that agency is the Office of Insurance Regulation, located at 200 East Gaines Street, Tallahassee, FL 32399.