Cheap Homeowners Insurance in Florida in 2022
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In 2019, the average homeowners insurance premium was $1,989 in the US, according to the Insurance Information Institute. The average cost of premiums in Florida in 2022 is $3,585, approximately a 55% rate hike in the last three years, according to Insurify.
In recent years, natural disasters and political unrest decreased the risk appetite among providers nationwide, Ken Gregg, CEO of Orion180, a homeowners insurance provider serving independent agents in the southeastern US, told Insider.
Florida is seeing some of the highest homeowners insurance rate hikes and the most significant number of policy nonrenewals in the nation. According to data from S&P Global Market Intelligence, as of mid-April 2022, Florida’s residential insurance market saw the cancellation of approximately 37,000 policies.
Due to housing scams, frivolous lawsuits, and severe weather in the region, Florida residents are noticing a tremendous increase in
homeowners insurance
rates.
Is homeowners insurance required in Florida?
For Florida residents, homeowners insurance isn’t mandatory. However, your lender will likely require you to purchase homeowners insurance to protect your assets. In Florida, consider purchasing flood insurance as the state is susceptible to frequent flood damage. You’ll also want to ensure your policy sufficiently covers you against wind and water damage.
The cheapest homeowners insurance in Florida
Several factors affect your homeowners insurance costs, for instance, your home’s age and credit score. The Insurance Information Institute recommends gathering quotes from three insurance companies to compare policies or using an online broker tool to compare multiple quotes at once.
More than half of the policies written in Florida are from Citizens insurance. Citizens insurance was “designed as a ‘last resort’ option but is quickly becoming the only option,” according to the team at Goosehead.
Here are some of the cheapest homeowners insurance companies, based on nearly 600 policies in Florida with dwelling coverage between $240,000 and $260,000 in the past six months, according to Goosehead:
Source: Goosehead
Best homeowners insurance in Florida, based on customer satisfaction
The latest study from J.D. Power — a consumer research company that conducts consumer surveys — shows that a homeowners insurance company’s customer service and reputation are more important than price for homeowners.
Here’s how homeowners insurance companies ranked when consumers were asked about satisfaction overall:
*USAA is only for active military, veterans, and their families.
Source: J.D. Power’s 2021 home insurance satisfaction survey
Most popular homeowners insurance companies in Florida based on market share
Through S&P Global Market Intelligence, we gathered the market share of the following insurance companies in Florida. Market share refers to the total percentage of customers for each provider in Florida. Allstate has the largest share of financial assets in the state as of 2019.
Source: 2019 data from S&P Global Market Intelligence
Cheapest homeowners insurance for homes with swimming pools in Florida
Swimming pools are considered “attractive nuisances” under “other structures” of your dwelling coverage. Having a swimming pool can increase your liability as a homeowner, increasing your premiums.
Here are some of the cheapest insurance providers in Florida for homes with pools:
Source: Insurify
Cheapest homeowners in Florida for homes near the coast
Coastal communities are susceptible to frequent natural disasters such as tsunamis and hurricanes. Therefore, homeowners in this area face higher insurance rates. Here are some of the cheapest homeowners insurance companies for homes near coastlines.
Source: Insurify
Cheapest homeowners insurance in Florida for homeowners with dogs
Homeowners who own dogs are considered to be a liability to insurers, especially if their dog falls under an aggressive breed. Here are some of the cheapest insurance companies for households with a dog.
Source: Policygenius
Cheapest homeowners insurance in Florida for homeowners with poor credit
Insurance companies use credit-based insurance to determine your likelihood of filing a claim. If you have a poor
credit score
, your premiums might be higher than someone who has
good credit
.
Here are some of the cheapest homeowners insurance companies for homeowners with poor credit scores.
Source: Policygenius
Frequently Asked Questions — Florida homeowners insurance
How do I add flood coverage to my homeowners insurance policy in Florida?
Florida is susceptible to floods everywhere and all year long. Ask your homeowners insurance provider if it provides flood insurance. If not, you will need to get flood insurance through approved NFIP providers like the National Flood Services. Check the NFIP website for flood insurance providers.
What are the roofing scams in Florida and how does it affect my homeowners insurance costs?
One of the primary scams in Florida homeowners insurance involves bad-faith roofing contracts. Contractors solicit you, the homeowner, to pay for a new roof with your insurance, claiming they can offer a rebate for your deductible.
The scammer will have you sign an agreement allowing them to file a claim with your insurance provider. An adjuster will then visit your property to inspect the “damage” (the reason you filed the claim), and upon finding little to no damage, your insurance company will refuse to provide compensation. The dishonest home contractor will then sue your provider for insufficient payouts, and the insurer will either have to undergo court proceedings or settle compensation out of court.
The roof isn’t free for two reasons. One, your premiums will rise because you filed a claim for a new roof. And two, everyone buying insurance will also effectively have to pay for that new roof. As a result, the aggregate cost of premiums increases for policyholders. Due to a growing number of insurance scams and property lawsuits in Florida, insurers see tremendous losses in net income.
How do I lower my homeowners insurance cost in Florida?
Shop around
Shop and compare quotes annually to see if you can get a better deal elsewhere for the same level of coverage. Note that some insurers may charge you a fee for early cancellation.
Seek discounts
Get savings on your insurance premiums by bundling multiple products like your auto and home insurance policies. Discounts can also curtail your premiums. Insurance providers typically list the discounts they offer on their websites. Contact your insurance agent to see if you qualify for lesser-known discount opportunities.
Increase your deductible
Increasing your deductible by $500 to $1,000 could save you as much as 25% on your insurance bill, according to the Insurance Information Institute. Be aware that deductibles can be subtracted from your total coverage amount.
Routinely maintain your home
Claims may significantly increase your premiums and even be grounds for denial. Doing your due diligence by ensuring your systems are working properly and identifying early signs of foundation problems will decrease the likelihood of significant damage.
Fortify your home against wind damage
Fortifying your home’s structure and roof against wind-related damages can qualify you for wind mitigation discounts, says Gregg. Doing so is especially important in Florida, where hurricane events are frequent and damaging.
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