Why Are Homeowners Insurance Premiums so High in Florida?

Homeowners depend on homeowners insurance to protect their property and personal belongings against common hazards, ranging from theft and vandalism to fires and windstorms. Lenders also typically require borrowers to have homeowners insurance before being approved for a mortgage, making it a necessity for anyone that wants to purchase a home.

Unfortunately for Florida homeowners, home insurance premiums are often more expensive in the Sunshine State than elsewhere in the United States. This can make it difficult for Florida residents to find affordable policies that offer sufficient coverage against common disasters.

Read on to learn why homeowners insurance premiums are higher in Florida and what you can do about it.

Why Is Homeowners Insurance Expensive in Florida?

Florida residents may be faced with higher homeowners insurance premiums due to the simple fact that there is a greater risk of natural disasters that can cause extensive damage.

Due to Florida’s location between the Atlantic Ocean and the Gulf of Mexico, the state and its residents are exposed to natural disasters approaching from both coasts. Hurricanes, in particular, cause extreme damage over large areas, making it more likely for Florida homeowners to suffer damages than homeowners in other states.

Since hurricanes can cause damage to large areas at once, this means that insurance companies are likely to receive a lot of claims at the same time, which can be costly and difficult to manage.

To compensate, Florida homeowners often have to pay higher insurance premiums. Some insurance providers have stopped offering home insurance altogether, driving prices up even more due to there being fewer homeowners insurance providers in the state.

What Is the Average Cost of Homeowners Insurance in Florida?

Homeowners insurance in Florida is more expensive than almost every other state in the United States.

According to the Insurance Information Institute, the average premium for homeowners insurance in Florida in 2019 was $1,988 compared to a national average of $1,272. The only two states with higher average premiums in 2019 were Oklahoma at $2,000 and Louisiana at $2,037 — both of which are also considered at high risk of natural disasters.

These high insurance prices can make it difficult for Florida residents in cities like Miami, Kendall, and Pembroke Pines to find affordable coverage, which can be a major obstacle on their road to home ownership.

How Can I Lower my Homeowners Insurance in Florida?

While homeowners insurance premiums in Florida are higher than in most other states in the country, there are some steps homeowners can take to lower the cost of their homeowners insurance.

If you’re still shopping for a home, you should look for a home in an area that is at lower risk of being struck by a hurricane. While most of Florida is vulnerable to hurricanes, some areas are at higher risk and some are at lower risk. When looking at homes, ask your real estate agent about the history of hurricanes in the neighborhood.

You can also ask your insurance provider to pull a Comprehensive Loss Underwriting Evaluation (CLUE) on properties you’re considering purchasing. This will let you know whether or not the property has ever had insurance claims.

If you already own a home in Florida and want to lower your premiums, you can start by making upgrades to your home that make it less susceptible to hurricane and storm damage. This may include ensuring your home has a working sump pump, reviewing your home’s exterior and mending any cracks or holes that could let in water, and installing hurricane shutters if your home doesn’t already have them.

Homeowners should also shop for other home insurance policies before renewing their existing policies to check if there are more affordable options available.

Lastly, choosing a policy with a higher deductible may lower your premium. However, it’s important to keep in mind that this means you’ll face higher out-of-pocket costs if your home suffers covered damages, which is more likely in a state like Florida.

What Is the Best Homeowners Insurance in Florida?

While the home insurance market in Florida may be more limited than it is in other states, there are still several great options for residents of the Sunshine State to choose from, including:

FIB Insurance

● State Farm

● Chubb Insurance

● Allstate

● Tower Hill

● Nationwide

At FIB Insurance, we have over 20 years of experience helping Florida homeowners find affordable and comprehensive homeowners insurance policies that protect them against a wide range of common disasters, including hurricanes. If you’re looking for an affordable home insurance policy in Florida, contact us today to request a quote.

Request a Homeowners Insurance Quote Today

While homeowners insurance premiums are typically higher in Florida than they are in most states, that shouldn’t stop you from getting the coverage you need to protect your home and personal belongings. At FIB Insurance, our experienced and knowledgeable agents will work with you to find a policy that meets your coverage and financial needs. To learn more about homeowners insurance in Miami and the surrounding area, contact us today for a custom quote. We look forward to helping you!

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