Home Insurance in Florida


UPDATED: NOV 2020 | 3 MIN READ

The insurance market is a bit hostile for homeowners in Florida. It’s the 2nd most expensive state as far as premiums are concerned, and it has some of the highest rates of natural disasters in the country. Florida does have a FAIR program, though, and mandatory catastrophic coverage for sinkhole damage on every standard homeowners insurance policy. As far as flooding, wind, and non-catastrophic sinkhole damage goes, however, homeowners must decide for themselves what their risk is, and what they are willing to pay for financial protection.

  • Fun fact – there are no dinosaur bones in the state of Florida. During the era of the dinosaurs, the entire land mass of the peninsula was under water. 

Average Rates in Florida

There are many different statistical reporting agencies that closely track the average price of homeowners insurance in the US. As of right now, Florida is ranked #2 on the “most expensive” list. Louisiana, believe it or not, is taking up the number one spot, and Texas is right behind Florida as far as high homeowners insurance prices go. The average Florida homeowner can expect to pay around $1,951 annually for their homeowners insurance premium. 

Property values are pretty expensive in Florida, so many residents choose to rent instead. At $188 per year, renter’s insurance in Florida is $8 higher than the national average. That’s less than $1 a month extra if you’re paying your premiums monthly. So although renters insurance is more expensive in Florida, it’s unlikely to break your bank. 

Florida Legal Insurance Requirements

The state of Florida does require homeowners insurance companies to provide sinkhole coverage to their policyholders. Specifically, Catastrophic Ground Cover Collapse is mandatory. For any damage that falls short of “catastrophic”, it is up to the insurance company whether or not they want to cover it. Furthermore, it’s up to the homeowner whether or not they want to pay the extra costs associated with purchasing that coverage. But seeing as how Florida is #1 for sinkholes in the country, it’s probably a good idea. Beyond that, there aren’t any strict rules or regulations imposed by the state or federal government. But if you are paying off your home via a loan or mortgage, your lender will most likely require you to purchase homeowners insurance.

Common Risk Factors in Florida

As a Florida resident, your biggest headaches when it comes to home damages and repairs will most likely come from sinkholes, hurricanes, flooding, and wind damage. As we just discussed, your homeowners insurance company is legally required to offer you supplemental coverage against catastrophic sinkhole damage. Whether or not you choose to purchase it is another matter entirely. Most homeowners insurance policies will cover some form of wind damage, even from hurricanes. But especially in high-risk areas, most insurance providers will ask you to pay a separate and more expensive deductible in order to share costs more evenly.

Some parts of Florida are considered so high risk that you may have trouble finding coverage from your average, everyday insurance provider. Some homeowners get rejected multiple times when trying to find a company who will cover them. That’s why the FAIR program exists. In the State of Florida, the Citizens Property Insurance Corporation manages FAIR home insurance policies. Your best bet is to contact them directly, but only if you have been rejected multiple times and absolutely cannot find standard insurance coverage. The reason for this is because FAIR plans are usually exorbitantly more expensive as they are a last resort and do not have to be priced competitively with other insurance products.

Insurance Demographics/Statistics in Florida

We’ve pretty much covered the major factors that influence how affordable or expensive you can expect your annual homeowners premium to be. But there are a few other factors that, although less influential, can also make an impact of their own:

  • Home Value: Surprisingly, although this definitely differs from city to city, the average price for home in Florida is $252,309 dollars. Believe it or not, that’s a few thousand shy of the national average. Granted, such a slight difference in price probably won’t lower your home insurance premiums that much. But it could help. 
  • Crime: Much like home values, the difference between Florida crime rates and the national average isn’t that great, either. For most homeowners, the chance of being a victim of property crime across the nation is 1 in 43. In Florida, that chance is 1 in 44, or 22.82 cases of crime per 1,000 residents. 
  • Income: Making more money is great for your homeowners insurance premiums because your insurance company will know that you’re more reliable as far as making regular, on-time payments goes. In Florida, however, the average income level of $55,462 may be working against you. That’s because this is over $6,000 less than what the average US household is bringing home each year.
  • Education: Unfortunately, the same goes for education within the state of Florida. The national average of homeowners with a bachelor’s degree is 32%, or just under one-third of the adult population. But for the State of Florida, that number is only 29%. We mention this because most insurance companies – especially homeowners insurance companies – prefer to give better rates to people with a higher education. 

Where To Purchase Home Insurance in Florida

There are many different ways you can either purchase a new or switch to a different homeowners insurance policy for your home. You can ask around for help from family and friends. You can shop by yourself online, or call around to local providers yourself. Or, better yet, you can compare quotes from multiple providers online with us at AgileRates.com. 

What’s the major difference between all of these methods? Well, getting advice from people you trust can help you find a more reputable company then going off of advertising alone. Shopping around each year at renewal (which 56% of homeowners don’t do) can help you maintain the best possible price and save you money in the long run. And if you shop around Online – which only 17% of homeowners are doing currently – you can save even more money still in a fraction of the time. We can help you compare multiple quotes in a matter of minutes today if you so choose. So don’t hesitate – start saving money now!

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