Insurance Rates for Florida Homeowners

Home insurance is a vital portion of your financial portfolio because it protects your most valuable asset, your home. Due to changes in risk experience among insurance companies, rates may change.

Shopping upon each policy expiration date for the most advantageous price and the most reliable insurance company is a relatively easy process if you follow the steps and suggestions here.

Use our FREE search tool to start comparison shopping now!

Collect Information on Your Current Policy or the Policy Purchased by the Previous Owners

You will need this information to obtain additional quotations from different insurance companies. The following information is required:

• Type of construction – frame or brick
• Age of the house
• Fire protection – distance from fire hydrants, quality of the fire department
• Amount of coverage
• Deductible amounts – in Florida deductibles vary. The usual deductibles for homeowners coverage vary from $500 to $1,000 depending upon your requirements and those of your mortgage holder
• Hurricane deductible amounts – Florida law, under Section 627.701. F.S. states the required deductibles and when special hurricane deductibles apply. Information on these can be acquired at the Florida state website.
• Value of the house – replacement cost or actual cash value

Hurricane Deductibles

It is important to pay attention to the special hurricane deductibles because they can affect your coverage. Hurricane deductibles must be offered as follows:

• $500
• 2 percent of the total value of the home
• 5 percent of the total value of the home
• 10 percent of the total value of the home

The duration of a hurricane is set as follows:

• Beginning – when a hurricane warning or watch is issued by the National Hurricane Center or the National Weather Service
• Continuing – while hurricane conditions exist anywhere in Florida
• Ending – 72 hours following the last hurricane watch announcement

Valuation of Your Home

Depending upon your choice, you may insure your home for either replacement cost, which replaces the dwelling and contents; or actual cash value cost, which is the stated value of the house.

Remember that the cost paid for the home is a reflection of the real estate valuation rather than the building cost. To get a close estimate of the replacement, access Building-Cost for a free calculator.

Examine Coverage and Perils Covered Carefully

Most people purchase the Broad Form Homeowners Policy that provides coverage against the following perils, plus personal liability:

• Fire – actual burning of the property
• Smoke – smoke damage is often caused by fires
• Windstorm – with the restriction on hurricane damage as stated
• Hail
• Lightning
• Explosion
• Vehicles – owned by others
• Civil Unrest
• Theft
• Vandalism
• Trees and other falling objects – yours or those of your neighbors
• Weight of snow, ice, and sleet
• Freezing, rupturing, or sudden and accidental overflow of plumbing, heating, air-conditioning, or sprinkler systems. (Note that backup and overflow of sewer systems or sump pumps is not covered – this may be purchased separately)
• Sudden and accidental overflow of a household appliance

Please note that insurance companies have begun to restrict the water coverage to sudden and accidental occurrences – within a short time of the claim. It is not intended to pay for lack of maintenance.

Limits of Coverage

The amounts of coverage under the homeowners policy depend upon the valuation you choose for the building:

• Building amount is reliant upon your choice – but it should be at least 80% of the replacement cost for the building
• Other structures such as sheds, gazebos, and detached garages is 10% of the coverage carried on the building
• Personal property is 50% of the amount of coverage carried on the building
• Loss of use – in the event that you may not be able to live in the building – 20% of building coverage

These amounts are set by formula on the homeowners policy, but additional insurance can be purchased on any of the sections at an additional cost.

Additional Coverage to Purchase

Some types of insurance are not covered under a homeowners policy and should be considered as additional purchases:

• Flood insurance – excluded by most insurance policies. Can be accessed through the government website at FloodSmart since it is available only through subsidized insurance.
• Coverage for paintings, sculptures, and jewelry that exceed the amount of coverage per item on a homeowners policy. To get this coverage, have the item appraised, then give a copy of the appraisal to the insurance agent to verify values. An addition to your homeowners policy or even a separate policy should be purchased for these.

Personal Liability Coverage

It is suggested that you purchase at least $100,000 of personal liability coverage and $5,000 of medical payments coverage. Personal liability provides protection against types of personal liability not usually included in an automobile insurance policy.

Medical payments coverage pays for injury to others on your own property. It is intended to pay for such things as dog bites, slip-and-fall injuries, and inadvertent actions of children. You must look at your policy provisions carefully for further definition.

Shop for Insurance Companies and Agents

All insurance companies and agents in the state of Florida are required to be licensed with the state. To examine the records of companies and agents, go to financial information for the state at Florida's financial website.

National resources to access for financial information and complaints about insurance companies are:

• A. M. Best Company
• National Association of Insurance Commissioners (NAIC)

Discuss insurance with your friends, neighbors, co-workers, and relatives to determine their viewpoints about local insurance companies. Their experience will help you make reasonable determinations about insurance.

Saving Money on Insurance

Florida has an estimating tool to give you an idea of homeowners prices. You can access this by going to the state insurance website.

Hurricanes are a definite risk in the state of Florida, and the state insurance website has information about how to get your homeowners insurance premiums reduced through Hurricane Loss Mitigation. The suggestions about how to reduce your risk of damage to your home through strengthening your home are valuable. Credits are available by implementing these repairs and upgrades.

Be sure to use the FREE comparison tool located at the bottom of this page to search for insurance!