Why is Homeowners Insurance So Expensive in Florida?

Florida StateBeing a homeowner means you have to assume a certain amount of risk. You are now responsible for maintenance and repairs as well as homeowners insurance to protect your property. This means you also need to pick out the right amount of coverage and find the best deal on Florida homeowners insurance. As your shopping has progressed, you have probably noticed that Florida homeowners insurance is expensive. You want to know why and then what you can do about it.



Homeowners Insurance Risks Associated with Hurricanes

One of the major risks associated with owning a home is the damage that can come from a major storm. As a resident of Florida, you are surely aware of the inherent risks of living in one of the most beautiful areas of the nation. Your standard homeowners insurance policy will be more expensive because of the inherent risks your home faces, and you may also be forced by your lender to purchase a wind and hail policy in addition to the standard policy. This can possibly double your homeowners insurance premiums.


Homeowners Insurance and the Risk of Flooding

Another major risk facing homeowners and their insurers is flooding. Being close to the coast means a low-sea level and a higher risk for flooding which will certainly balloon your homeowners insurance premium payments. Flooding is such a risk that homeowners insurance companies do not cover damages caused by floods. You have to get flood insurance through the National Flood Insurance Program. You can purchase the coverage through your homeowners insurance company, but it is backed and underwritten by the federal government. Again, adding this to your standard policy will significantly increase your Florida homeowners insurance premiums.


Social and Economic Factors Affecting Homeowners Insurance Rates

A final factor that can increase the cost of homeowners insurance in Florida is related to socio-geographical circumstances. There are many areas of the state that are urban environments which increase the cost of living and crime rate. Both of which are important factors when figuring rates for home insurance. Also, homes on the coast are generally more expensive pieces of property and the houses are generally worth more. This means higher limits of coverage and thus higher homeowners insurance rates.


Other Risks Affecting Homeowners Insurance Rates

There are a few other risk factors that can increase the amount you have to pay for homeowners insurance in Florida. If you are right along the coast, you will have to worry about erosion to your foundation and salt water air damage to your home’s structure. Many areas of Florida are also prone to tornadoes, which can further increase your homeowners insurance premiums.


Use Homeowners Insurance Quotes to Reduce Rates

One way to help control rates is to shop around using Florida homeowners insurance quotes. The policies you must purchase under federal programs, such as flood insurance and extra wind and hail coverage will not be included as those are federally regulated rates, but your standard policy can vary greatly from company to company. Using homeowners insurance quotes, especially online, will allow you to quickly sort through the rates from competing companies to choose the most affordable option and possibly save you hundreds of dollars per year.



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