Best home insurance in Florida 2023 (2023)

Florida homeowners struggle with this more than any other stateinsurance problems. Here's a look at the latest information and the average home insurance cost.

Cheap home insurance cost comparison in Florida

The average cost of home insurance in Florida is $2,030 per yearfor a typical home with coverage of $350,000. Florida's cheapest homeowner insurer for this level of coverage is Progressive, based on Forbes Advisor analysis of 12 insurers in the state. See more average costs below.

Average home insurance cost for $200,000 home insurance

Average home insurance cost for $350,000 home insurance

Average home insurance for $500,000 home insurance

Average home insurance cost for $750,000 home insurance

Related:The best home insurers

Florida Home Insurance "Got Got A Bully"

Florida's population is approaching 22 million and accounts for just 8% of the state's property claims. But Florida has filed more than three-fourths of all property claims, many of which lawmakers say are frivolous.

Home insurers in Florida often face a no-win situation when fighting an insurance claim in court, thanks to the state Allocation of Benefits Act (AOB). The AOB allows a homeowner to file their claim with a contractor instead of dealing with the insurance company. The contractor can then hire a lawyer, often before speaking to the insurer.

Florida law states that if the attorney makes a dollar more than the insurer offered, the insurer must pay not only for the claim - which the contractor may have inflated - but also for all legal fees, which cost thousands of dollars for one Originally there were a few hundred. On oneCase cited by State Rep. Bob Rommel, the owner received $35,000; The attorney received $756,000.

Florida Gov. Ron DeSantis said the state's AOB system has "really become a racket."

Florida's rooftops are a key pain point

Roofers are aggressive in contacting Florida homeowners who may or may not have actual roof damage. They can be so aggressive that in many neighborhoods they hang flyers on every doorknob while offering $500 gift cards. The situation got so bad that the state legislature passed a law signed by Gov restricted to "forbidden".Encourage homeowners to file insurance claims for roof damage.

However, a federal judge issued an injunction against the law when a roofer said it violated his right to free speech.And other roofersthen filed the pending lawsuit.

A major criticism is that insurers try to avoid the risk of having to pay for new roofs by turning away customers with asphalt tile roofs that are more than 10 years old.

The legal crackdown on the state could make matters worse. "Florida's insurance market is collapsing," says a report commissioned by the Florida Senate Committee on Banking and Insurance.

Latest developments in homeowners insurance in Florida

December 16, 2022:Gov. Ron DeSantis signed legislation addressing several property insurance issues in Florida, including litigation costs, fraud, claims payments, flood insurance, financial stability of insurers and the state's insurer of last resort, Citizens.

The law will:

• Reduce attorney fees for homeowners who win insurance claims lawsuits.
• Restrict eligibility to join state insurer of last resort,Citizens Property Insurance Corp., whose policyholder count has skyrocketed over the past year.
• Prevent homeowners from filing a home insurance claim with a third party, e.g. B. a contractor.
• Encourage Citizens Property Insurance policyholders to purchase flood insurance.
• Challenge home insurance companies to pay claims faster and send inspection reports to homeowners instantly.
• Add an additional $1 billion to Florida's optional reinsurance assistance program.

What to do when your Florida home insurance company goes out of business

Thousands of Floridians have had to struggle to find new home insurance after their insurers were liquidated, went bankrupt, or simply stopped selling policies in the state.

The state's chief financial officer, Jimmy Patronis, lists 13 insurers in Florida in liquidation — and that doesn't include insurers that simply went out of business in the state.

The Florida Insurance Guaranty Association (FIGA) is the state program that temporarily handles payments and claims from bankrupt property and casualty insurance companies. See what happens when your insurance company defaults and files for bankruptcy.

• A state court issues a liquidation order.
• The Florida Insurance Guaranty Association takes over the company's claims.
• Policyholders make due payments to the club and look for a new insurer.
• The association processes outstanding claims of the insolvent company before the liquidation or within 30 days after the liquidation order, unless the policyholder exchanges the policy before the end of the 30 days. The association pays covered claims between $101 and less than $300,000.
• FIGA will also refund unearned prizes. For example, if you paid for insurance for the year but your policy expires due to billing.

How to register home insurance with the Florida Insurance Guaranty Association

What happens when your homeowner's insurance company goes bankrupt days after a fire damaged your home? Learn how to file a claim with the Florida Insurance Guaranty Association.

• Write, email, fax or call FIGA to find out how to make a home insurance claim.
• The association would like to know your insurance number and the date of the damage.
• FIGA creates an application number that you should have at hand during the application process.
• FIGA will appoint an Inspectorate to process the claim and examine the compensation.
• The association processes the owner's insurance claim and offers compensation.

Common home insurance problems in Florida

Homeowners in Florida face problems not found in other states. Here are common problems and how they affect home insurance.

Home insurance prices in Florida are increasing at an unprecedented rate

According to Mark Friedlander, a spokesman for the Insurance Information Institute, homeowners in Florida pay the highest premium in the US, averaging $4,231 per year, more than three times the US average.

Average annual increases in Florida are about 33%, compared to the 9% national average, Friedlander says. Some homeowners see renovation rates in excess of 50% to 100%.

Some homeowners cannot get coverage through private insurance

Florida homeowners who have lost insurance coverage because their insurers have gone out of business or stopped renewing policies often have difficulty finding coverage in the private market. Many homeowners turn to the "last resort," Citizens Property Insurance Corp.

In 2002, lawmakers established Florida Citizens, a government organization that offers homeowners insurance to homeowners in Florida who cannot obtain coverage elsewhere. It is the state's insurer of last resort.

Many Florida homeowners are unable to qualify for coverage with a private insurance company, and Citizens has become a more common method of obtaining coverage.

But not all homeowners can qualify for a policy through Citizens. For example, homes with a replacement cost of $700,000 or more and single condos with combined homes and a replacement cost of $700,000 or more are not eligible for a policy. Homeowners in Miami-Dade and Monroe counties have a replacement cost ceiling of less than $1 million through Citizens.

Some homeowners are forced to sell their homes.

Home insurance costs and property values ​​are driving many Floridians to sell their homes because they can no longer afford insurance, says Friedlander of the Insurance Information Institute.

"This includes longtime homeowners, retirees, those on a fixed income, and low-income families who don't have disposable income to meet rising insurance costs," says Friedlander.

Reasons Florida Home Insurance Denies Coverage

Regardless of where you live, insurers may refuse to sell you coverage because of the risk, but Florida has unique factors that can lead to a refusal — many of which are beyond your control as a Florida homeowner.

The house has a history of claims.

A house with previous damage is a warning sign for insurers. Even if you never made an insurance claim, you could be penalized based on previous claims from the previous owner.

This issue is now a key component of insurance denial due to the current insurance climate in Florida, Friedlander says.

Excessive litigation in your county

Even if your home is insurable and you don't have a claims history, insurers may choose not to sell policies in a particular county because of the risk of litigation, Friedlander says.

High risk of storm damage

Companies that primarily sell insurance in Florida may choose not to sell policies in areas with a high risk of storm damage - particularly coastal counties.

What happens if an insurance company cancels or doesn't renew a policy?

Even Florida homeowners who currently have insurance are still at risk of losing coverage. Insurance companies rate the risk of insuring your home every year. If they think your home is too risky to insure, they may cancel or not renew your policy.

And, of course, Florida home insurers that close will not renew policies.

Fortunately, Florida insurers are required by law to give at least 30 days' notice if the company files for bankruptcy or terminates your policy in the medium term. In addition, the transaction must be approved by the Florida Office of Insurance Regulation.

If a Florida home insurance company decides not to renew a policy, they must give you 120 days' written notice. If this happens to you, it's a good idea to start looking for new cover immediately.

What to do if you're having trouble getting home insurance in Florida

Work with an independent home insurance agent

Independent insurance agents make up the majority of private insurers. Independent brokers can get insurance quotes for you from many insurance companies. And if you qualify, they can also get home insurance quotes from Citizens.

Agents may also purchase rates from "excess insurers" as a last resort if they do not otherwise qualify for coverage.

Another option is in-house insurance agents, but they can only create quotes from the insurance company they work for.

"In this market, it's best to expand your options and get as many quotes as possible because it's a very tight market and it's very difficult to find coverage," says Friedlander.

Explore surplus line companies

In some cases, it may be necessary to go through an excess insurer or an unlicensed entity - a non-state insurer not regulated by the Florida Office of Insurance Regulators.

Surplus carriers can charge much higher rates and may not offer the same level of coverage as a regulated insurance company. Also, they have no backup funds from organizations likeHurricane Disaster Fund, which pays claims when an insurer is unable to pay claims after a significant hurricane.

Even if insurance companies go bankrupt in FloridaFlorida Insurance Assurance Associationdeals with the claims of current policyholders. But if you buy insurance from a company with excess lines and it goes bankrupt, you don't have the warranty membership as a backup.

"Although purchasing insurance from an unlisted carrier is risky, homeowners in coastal areas or with uninsurable homes may have no choice but to purchase a deductible policy," says Friedlander. "In any case, you should work with an insurance agent who has the experience of navigating a property insurance 'minefield' in Florida."

Avoid self-insurance

You are not legally required to have homeowners insurance if you own your home and do not have a mortgage. Opting for self-insurance may seem like a viable option to avoid the headache of finding home insurance in Florida, but opting for self-insurance means you are financially responsible for any damage or destruction to your home.

Some Floridians choose to simply get homeowners insurance that covers everything but storms. These homeowners are financially responsible for any damage to their homes caused by a hurricane, leaving them at extreme financial risk.

“Nationally, about 5% to 7% of homeowners do not have property insurance. However, we strongly advise against doing so because Florida is highly susceptible to severe weather events such as hurricanes and catastrophic property damage,” says Friedlander.

"So when you buy Florida insurance, you are finding the best way to financially protect your home and family and avoid financial ruin."

Cost factors of home insurance

Several factors can determine your ability to get cheap homeowners insurance in Florida, including:

• the age of the house
• The materials that make up your home
• The cost of rebuilding the house
• The fire rating of your location
• Your location's claim history
• Your personal claims history
• Coverage Limits and Deductibles
• your credit

Related: Cheapest home contents insurance 2023

What does home insurance cover?

A standard homeowner's insurance policy (designated HO-3) covers your home against all accidents not excluded in the policy. Common exclusions include sinkholes, power failure, neglect or wear and tear, nuclear hazard, vermin and insect infestations, and willful damage.

Your personal belongings are covered by certain "perils" listed in a standard homeowner's insurance policy. Theft, vandalism, tornadoes, fire or lightning and smoke are just some of themProblems covered by home insurance.

Normal homeowners insurance consists of these main types of insurance:

• Housing:This part of the policy pays for your home to be repaired or rebuilt if it is damaged. Also covers additions such as decks or garages.
• Other structures:It's worth repairing or replacing structures that aren't attached to your home, like fences, sheds, or underground pools.
• Personal property:This pays for repairing or replacing your belongings after an event such as fire or theft. Your personal belongings include items such as clothing, jewelry, furniture, appliances, carpets, and other household items.
• Responsibility:This pays for property damage and injuries that you or other family members accidentally cause to others. For example, if you let your dog off the leash and it bites a person passing by, your liability insurance could pay for a settlement or court judgment against you -- and legal defense costs -- if the person files a lawsuit.
• Medical payments to third parties:This covers minor medical claims made by someone outside your home, regardless of who is responsible for the injury. For example, if a friend trips over a loose rug and sprains their ankle, health insurance can pay for the medical care they receive. The coverage amounts are usually low, e.g. B. $1,000.
• Additional living expenses:If you are unable to live in your home due to an event covered by your policy (such as a fire or tornado),additional coverage for living expensescan compensate you for money spent on restaurant meals, hotel rooms and other necessary services such as pet boarding.

Related: How Much Home Insurance Do You Need?

What is not covered by home insurance?

Common exclusions found in a standard Florida home insurance policy include events such as power outages, flooding, earthmoving (sinkholes, landslides, mudslides, earthquakes), neglect, wear and tear, bird, vermin and insect infestations, and willful loss.

It's always good to double-check your policy to understand what's excluded from coverage.

Wildfires threaten homes in Florida

Nearly 44% of Florida homes have at least a 0.03% chance of being damaged in a fire this year, equivalent to more than 3.9 million, according to a report by the First Street FoundationFeed the flames.

A few counties in Florida have experienced increased wildfire risk over the past 30 years, including Columbia, Jefferson, and Sumter counties. According to the report, environmental changes have led to increased risk, which includes drought conditions, higher temperatures, lower humidity and drier vegetation.

County in Florida with most properties at risk of wildfires this year

Most common disasters in Florida

The Sunshine State's sunny skies can occasionally be darkened by a variety of disasters. Florida has seen its fair share of severe storms, but has been hit hardest by hurricanes and wildfires.

Florida has experienced 45 declared disasters from major natural disasters over the past 65 years. The 2020 hurricane season had a record 30 named storms, and December 2021 had 21. While Florida has been spared major hurricane damage over the past two years, homeowners need to be prepared.

Keep this in mind when buying home insurance in Floridaspecial deductibles for hurricanes. These are usually percentage based and are calculated based on the amount of coverage you have for your home. For example, if your coverage is $300,000 and your deductible is 5%, that equates to $15,000.

And while Florida hurricanes are well known, more fires have actually been declared than disasters over the years. For example, in May 2020, the Five Mile Swamp Fire lasted for five days due to extremely dry conditions. It caused a two-day closure of Interstate 10, burned about 2,300 acres, and destroyed 14 homes.

type of disaster report			Number since 1953 in Florida
	Biological	4
	Chemical	0
	coastal storm	2
	Dam/dyke breach	0
	Seca	0
	earthquake	0
	Fogo	65
	fishing losses	0
	flood	13
	Freeze	6
	human cause	1
	hurricane	45
	mud/landslide	0
	Others	1
	Strong ice storm	0
	Strong storms	22
	NO	0
	Terrorist	0
	Tornado	1
	poisonous substances	0
	Tsunami	0
	typhoon	0
	Vulkan	0

Disasters by Month in Florida

March through October has historically been the busiest time of year for reported Florida disasters, with May and September being the busiest months.

disasters in Florida each year

For the past 20 years, Florida residents have faced an average of 3.5 reported disasters per year. In 2001, one of its most catastrophic years, Florida experienced nine wildfires, severe freezes, severe thunderstorms, tornadoes, and one tropical storm. In 2020, Florida survived three wildfires, Hurricane Isaias, and Covid-19 was declared a biological disaster.

Florida flood insurance

Normal household contents insurance does not cover flood damage. And with flooding becoming more common, especially with the severe storms Florida gets, you might want to think about itflood insurance.

Florida is no stranger to back-to-back storms or hurricanes, which can quickly dump large amounts of rain and cause major flooding problems. In November 2020, Hurricane Eta made landfall in South Florida with 16 inches of rainfall in some areas of Miami-Dade County. It flooded urban areas, including businesses and neighborhoods.

Many areas in the US experience catastrophic and costly flooding, but these events may not have been declared a federal disaster. Here's a look at the number of recent floods in Florida.

Government financial support following a flood may be limited. It is best to take out your own flood insurance. Most people who have flood insurance buy it through the National Flood Insurance Program (NFIP), a federal program. Private flood insurance is also possible.

FEMA's Individuals and Families Program (IHP) can provide financial and direct assistance after a disaster or emergency if you qualify. This program helps people find housing after a problem directly caused by a disaster that is not covered by insurance or other sources.

Earthquake in Florida

According to the US Geological Survey, Florida is one of the two states with the fewest earthquakes. (North Dakota is the other state.) Florida is simply far from tectonic plate boundaries. However, there are rare instances when earthquakes do occur. For example, in 2020, a magnitude 4.0 earthquake was recorded near the Florida-Alabama state line in Santa Rosa County.

Tips on taking out home insurance

Whether you're foreclosure on your first or seventh home, or have decided to switch insurance companies, you want to be sure you're getting good homeowner insurance coverage. Here are suggestions for newcomers and longtime owners alike:

• Estimate your conversion costs.Ask your insurance company or a well-known home builder how much it would cost to rebuild your home with similar materials based on labor costs in your area. You want your home cover value to match that estimate.
• Check replacement cost benefit versus actual present value.Consider getting replacement cost coverage for your house and belongings – you will get the amount needed to replace your house and belongings with new versions, not a written-off amount.
• Consider adding extra coverage for your large items.If you have high-value items, antiques, or expensive sports or music equipment, determine whetherpersonal wealth planningExtra coverage is what you need
• Assess your liability insurance needs.Be sure to buy an amount equal to your assets that can be taken from you in a lawsuit, or at least $300,000.
• Assess coverage gaps.Some home insurance policies offer additional endorsements to cover things that your standard policy doesn't cover. For example, pay for damage caused by water or sewer lines, or set higher limits on landscaping if damaged by theft or fire.
• Check the financial ratings.Research financial strength ratings from companies like A.M. Best or Standard & Poor's. Some financial institutions will not approve your mortgage unless your insurance company has at least an "A" financial strength rating.
• Ask about discounts.It never hurts to ask if you're getting all the discounts you can get. For example, you might get a discount for smart home features like flood sensors, or for buying home and auto insurance from the same company.
• Compare quotes from multiple insurers.The price for the same policy can vary widely between insurers. Purchasing gives you the peace of mind that you have found the best policy at the best price.

methodology

Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with $300,000 residential coverage and $100,000 general liability coverage.