Florida Homeowners Insurance Guide

Florida's home insurance market is as complex as it is volatile. With the state's unique risks and turbulent market conditions, finding the best homeowners insurance can be challenging. This guide aims to help you navigate the intricacies of homeowners insurance in Florida, providing insights into the best insurance companies, coverage options, costs, and more.

Top Homeowners Insurance Companies in Florida

Based on a combination of factors, including premium data, customer satisfaction ratings, financial strength ratings, and coverage offerings, here are some of the best homeowners insurance companies in Florida for 2023:

1. Allstate: Known for its extensive list of discounts, Allstate offers unique endorsements that tailor coverage to its policyholder's lifestyle. It provides additional coverage for sports equipment, business property insurance, and its trademarked HostAdvantage Homeshare Insurance for homeowners who use their home as a short-term rental.

2. Chubb: Ideal for homeowners with high-value homes and assets, Chubb offers bespoke services with more than 200 products. Policyholders who qualify for a Masterpiece home policy may have benefits like extended replacement loss coverage and $50,000 in watercraft coverage.

3. State Farm: With over 19,000 local agents across the U.S., State Farm is a top choice for local agents. It offers several ways to save on your home insurance and works with Rocket Mortgage to help owners buy and insure their homes seamlessly.

4. Kin uses unique technology and more individualized property data to underwrite its home policies. The company's standard coverage protects homeowners from expensive repair costs associated with numerous perils, including windstorms, fires, smoke, lightning strikes, hail, explosion, theft, and vandalism.

5. Tower Hill: Tower Hill offers extensive options like landscaping coverage and trampoline liability. The carrier was founded in Gainesville, Florida, and is intimately familiar with the difficulties of the Florida homeowners insurance environment.

Understanding Home Insurance Costs in Florida

The average cost of homeowners insurance in Florida is $1,981 per year for a $250,000 dwelling coverage policy. This is about 39 percent higher than the national average premium. However, your premium will depend on your specific rating profile, which includes factors like your home’s location and features, your claims history, the insurance company you choose, and the specific coverage types and limits you select.

What Does Home Insurance Cover in Florida?

Florida homeowners insurance typically covers damage from floods, wind, and fire. However, flood damage is not covered in a standard homeowners insurance policy, so you will likely need to purchase a separate flood insurance policy. Wind-related damage is generally included in home insurance, and Florida, carriers are required to cover hurricanes and tropical storms. However, a separate hurricane deductible is required for named storms. Fire damage is also covered under standard home insurance policies.

Tips for Getting the Best Homeowners Insurance in Florida

1. Start shopping early: Give yourself ample time to compare home quotes between providers and secure coverage.

2. Understand your coverage needs: Be sure you know what type of coverage and what levels of coverage you need.

3. Utilize discounts: Most insurance companies will offer discount opportunities. Typical discounts include bundling your auto and home insurance with the same company or being claims-free for a certain period.

4. Increase your deductible: Your home insurance deductible is the amount you agree to pay out of pocket if you file a claim. Increasing your deductible means you'll pay more — and the insurance company will pay less — which usually translates to a lower rate.

Remember, securing coverage should take priority, and setting realistic expectations around the cost of Florida home insurance before you start shopping is essential.

Florida Homeowners Insurance FAQ

What is homeowners insurance?

Homeowners insurance is a type of property insurance that covers losses and damages to an individual's house and assets in the home. It also provides liability coverage against accidents in the home or on the property.

Why is homeowners insurance important in Florida?

Homeowners insurance is particularly important in Florida due to the state's high risk of natural disasters such as hurricanes, floods, and wildfires. It provides financial protection against damage from these events and liability protection in case someone is injured on your property.

How much does homeowners insurance cost in Florida?

The cost of homeowners insurance in Florida varies depending on several factors, including the location of your home, its age and condition, and the amount of coverage you choose. On average, homeowners in Florida pay around $1,981 per year for homeowners insurance.

What does homeowners insurance cover in Florida?

Homeowners insurance in Florida typically covers damage to the structure of your home, your personal belongings, liability for injuries or damage to other people's property, and additional living expenses if you're temporarily unable to live in your home due to a covered loss.

How can I save on homeowners insurance in Florida?

You can save on homeowners insurance in Florida by shopping around for the best rates, increasing your deductible, improving your home's security and disaster resistance, and taking advantage of insurer discounts.

Is homeowners insurance required in Florida?

While homeowners insurance is not legally required in Florida, most mortgage lenders will require it. Even if you own your home outright, homeowners insurance is a good way to protect your investment.

How do I choose the best homeowners insurance company in Florida?

When choosing a homeowners insurance company in Florida, consider the company's financial strength, customer service reputation, coverage options, and premium rates. It can also be helpful to read reviews from other customers.

What is a deductible in homeowners insurance?

A deductible in homeowners insurance is the amount you agree to pay out of pocket before your insurance coverage kicks in if you file a claim. A higher deductible typically results in a lower premium.

Does homeowners insurance cover flood damage in Florida?

Standard homeowners insurance policies do not cover flood damage. If you live in a flood-prone area in Florida, you will likely need to purchase separate flood insurance.

Does homeowners insurance cover hurricane damage in Florida?

Homeowners' insurance typically covers wind damage caused by hurricanes. However, damage from flooding, even if it's caused by a hurricane, is not covered unless you have a separate flood insurance policy.

What is the actual cash value vs. replacement cost in homeowners insurance?

Actual cash value is the depreciated value of an item at the time of the loss, while replacement cost is the amount it would cost to replace the item with a new one of similar kind and quality.

How does homeowners insurance work if I have a mortgage?

If you have a mortgage, your lender will likely require you to have homeowners insurance. The insurance payment is often included in your monthly mortgage payment, and your lender will pay the insurance premium to the insurance company out of your escrow account.

What is liability coverage in homeowners insurance?

Liability coverage in homeowners insurance protects you if someone is injured on your property or if you or a family member causes damage to someone else's property. It can cover medical bills, legal fees, and repair costs.

What is personal property coverage in homeowners insurance?

Personal property coverage in homeowners insurance protects the items inside your home, such as furniture, clothing, and electronics, if they are damaged or destroyed by a covered peril.

What is an insurance adjuster?

An insurance adjuster is a professional who assesses property damage to determine how much the insurance company should pay for the loss. They may work for the insurance company or be an independent adjuster hired by the homeowner.

What is not covered by homeowners insurance?

While homeowners insurance covers a wide range of incidents, there are some things it typically does not cover. This includes damage from floods, earthquakes, and normal wear and tear. It also usually doesn't cover damage that results from lack of maintenance.

How much homeowners insurance do I need?

The amount of homeowners insurance you need will depend on several factors, including your home's value, your personal belongings' value, and the amount of liability coverage you want. Generally, you should have enough insurance to cover the cost of rebuilding your home and replacing your belongings.

Can I switch homeowners insurance companies?

Yes, you can switch homeowners insurance companies at any time. However, it's important to ensure you always have coverage, so don't cancel your old policy until your new one has started.

What happens if my homeowner's insurance is canceled?

If your homeowner's insurance is canceled, you could be at risk of losing financial protection if your home is damaged or destroyed. If you have a mortgage, your lender may also have the right to foreclose on your home if you don't maintain adequate insurance coverage.