From its beautiful landscapes to its vibrant nightlife, Florida offers many attractions. However, when it comes to home insurance, the state is considered as one of the most challenging places to live and for you and your family to be safely insured.
In this article, we’ll dive into the reasons why these issues are occuring. We aim to shed light on these major concerns and you get to have a greater understanding of the current real estate market.
Key takeaways:
- The average cost of homeowner insurance in Florida is $4,200 per year for full coverage policies.
- Home insurance in Florida has gone up 40% since last year.
- Six Insurance companies have either gone bankrupt or left due to natural disasters.
how much does florida home insurance cost in 2023?
Home insurance in Florida are costing on average $4,200 and all the way up to $7,200 annually in certain cities, also is known to be a very difficult state to try and make a claim. Making Florida the highest cost for insurance and will continue going up at a very quick rate.
Why is Florida Insurance increasing by 30-50% annually? The reason for this is because of hurricanes and natural disasters causing roughly 116 Billion in damages in 2022 alone. A significant concern for homeowners is obtaining homeowners insurance due to the condition of your roof. Most insurance companies will no longer insure you if the roof is older than 5 years.
Home Insurance chaos leaving 80,000 uninsured
Florida has encountered a challenging hurricane season in 2022, in which has resulted in the bankruptcy of Southern Fidelity, an insurance provider that had no choice but to call it quits. Due to the collapse of Fidelity many other insurance companies had gone under triggering a widespread of disasters. As a result of this, over 80,000 homeowners in Florida found themselves without any home insurance coverage.
Insurance companies that filed bankruptcy or departure in 2022.
- AMERICAN CAPITAL CORP
- AVATAR PROPERTY INSURANCE
- FEDNET INSURANCE COMPANY
- FLORIDA SPECIALTY COMPANY
- FIDELITY INSURANCE
The departures of these insurance companies in the previous year should raise huge concern for the upcoming hurricane season. Which companies are next to file bankruptcy? I strongly advise to take proper precautions to ensure with the right company before you fall victim of not being insured and dealing with lots of problems.
florida home insurance rates by companies
- Towerhill: $1,242
- State Farm: $1,871
- Progressive: $2,065
- Universal: $2,076
- Florida Peninsula: $2,437
- Heritage: $2,441
- HCI: $2,456
- Chubb: $3,175
However trying to do a claim can be quite difficult according to a reddit thread many people who are insured by State Farm have a very difficult time going back and forth to finally have there claim go forward. State Farm also has a strong financial rating, which could increase the safety for you, having a higher probability they won’t go bankrupt.
choosing the right home for the best insurance rates
Selecting the right home is crucial in the home insurance process. Purchasing a property with many flaws, from attic issues to plumbing will increase insurance costs and possibility being denied coverage. Until the repairs are completed than you’ll be insured. Purchasing a home that has a good condition roof and overall condition is great then you’ll be alright.
- Location “properties located in areas prone to natural disasters, such as hurricanes, floods or fires, typically increase premiums.
- Age and condition of the property: Older homes with older properties such as plumbing, heating systems and roofs increase the insurance cost.
- Construction materials: The type of materials used to build the home is crucial for insurance companies, it is important to have a good durable.
- Claims History: A clean history of no claims will greatly decrease your insurance because you’re seen as less of a risk to insure.
- Security features: Purchasing a home equipped with security features such as smoke detectors, fire alarms, and other safety measures will decrease your insurance so it’s important to add those safety features before applying for home insurance.
conclusion
As we conclude this article, it is important of conducting more research when deciding if Florida is a place you’ll like to live, taking in consideration the risks involved with home insurance coming this decade. I hope I had provided valuable insights, prompting you to have a deeper understanding of the current market in Florida.
