Florida has a more complex market than other states when it comes to homeowners insurance. Many home insurance companies do not offer homeowners insurance in the Sunshine State or only offer coverage in limited areas within Florida due to the volatile environment.
Understanding the challenges of obtaining Florida home insurance could help you set realistic expectations when shopping for a policy. First, it could be helpful to know that the average cost of home insurance in Florida in 2022 is $1,648 per year for $250,000 in dwelling coverage, which is higher than the national average of $1,383 per year. However, rates vary drastically based on your location within Florida, your home’s features, the carrier insuring your property and your coverage levels and deductibles. Bankrate’s extensive research and understanding of the complexities Florida homeowners face might help you on your journey to find the best homeowners insurance for your needs.
- The average cost of home insurance in Florida is 19% higher than the national average.
- Florida insurance companies may have strict eligibility requirements that could be based, in part, on your home’s features. Adding storm-resistant features to your home like hurricane shutters and roof straps might help you find the best coverage in high-risk areas.
- Homeowners who cannot purchase a private homeowners insurance policy may be able to get coverage from Citizens Property Insurance Corporation, Florida’s last-resort state-run insurance provider, although the company’s underwriting standards have tightened over the past year.
How Bankrate chose the best home insurance companies in Florida
To find the best homeowners insurance in Florida, Bankrate started by gathering current 2022 rates from Quadrant Information Services. We then reviewed each company’s coverage offerings and discounts to see which carriers offered the most impactful combination of features for Florida homeowners. We also analyzed J.D. Power’s customer satisfaction scores, as well as AM Best and Standard & Poor’s (S&P) financial strength ratings, to help homeowners get a well-rounded view of each insurance provider.
Best home insurance companies in Florida
Homes in Florida have an elevated risk for damage due to the state’s risks from tropical cyclones and other severe weather events, so you may want to ensure your insurance coverage fits your needs. To help you in your search, Bankrate analyzed the average cost of home insurance from each carrier and then reviewed coverage types, discounts and third-party scores. Based on the data, the following companies are our choices for the best homeowners insurance in Florida for 2022. Some of these companies may be unavailable for Florida homeowners in areas at higher risk for significant weather-related damage.
|Company||Bankrate Score||Average premium*||J.D. Power score||AM Best rating|
|American Strategic Insurance (Progressive home)||3.7||$863||821/1,000||A+|
|Tower Hill||Not rated||$1,332||Not rated||B++|
*Average rates are for annual policies with $250,000 in dwelling coverage
Bankrate’s editorial team confirmed these five carriers are actively writing new Florida homeowners insurance policies. However, because Florida homes face unique risks, coverage may be limited to certain ZIP codes, homes of a certain age or homes with specific safety features, like wind mitigation measures.
Working with a local insurance agent for guidance may be beneficial if you need home insurance in Florida. Some areas of the state present a particularly high risk of weather-related claims, which means that a local company representative may need to be involved in the quoting and application process.
State Farm, the largest U.S. home insurer based on market share, has local exclusive agents in more than 100 communities throughout Florida, which might be appealing if you like handling your insurance needs in person. Although the company’s average premium is already lower than Florida’s average, State Farm offers several ways to save on your home insurance. For example, if you take extra precautions by installing impact-resistant roofing materials, you may qualify for a discount.
Chubb may be a good choice for Florida homeowners with high-value homes. A few of its policy highlights include extended replacement cost coverage to rebuild your home or a cash settlement option if you decide not to rebuild after a covered loss. Chubb offers numerous extras included in its policies, which might explain the higher premiums, which could benefit homeowners, such as tree removal and home inspections.
Allstate offers Florida home insurance through its Castle Key Insurance Company subsidiary. The carrier offers numerous discounts, such as savings for being a new home buyer or having a good payment history. With exclusive and independent agents in nearly 200 cities throughout the Sunshine State, there’s likely an Allstate agent close to you who may be able to help you with your Florida home insurance needs. Allstate agents may also be able to help you work with an insurance broker if they cannot write your policy.
ASI (Progressive Home)
Progressive offers Florida home insurance underwritten by its St. Petersburg, Florida-based American Strategic Insurance (ASI) subsidiary. Florida homeowners who qualify may want to consider the company’s home replacement cost coverage, which would pay for the full replacement value of your damaged or destroyed home. Additionally, the carrier offers several discounts which could help you save even more, despite already having an average premium below the state’s average.
Although Tower Hill now offers coverage in 17 states, the carrier was founded in Gainesville, Florida, and is intimately familiar with the difficulties of the Florida home insurance environment. The company offers standard policies and options for high-value homes with its Prime Plus and Spire programs. Homeowners may be able to choose from multiple endorsements to personalize their coverage, including screened enclosure coverage, which could come in handy for Florida homeowners with screened porches or patios.
Additional Florida home insurance companies to consider
Florida Peninsula only sells home coverage in the Sunshine State, so it might be a good choice if you want to keep your coverage local. You might choose to keep your coverage relatively basic if budget is your primary concern, or you could choose from an array of endorsements to build a most robust policy. J.D. Power or AM Best does not rate Florida Peninsula because of its smaller market share, but the Boca Raton, Florida-based company carries an A (Exceptional) financial stability rating from Demotech, the highest level possible.
Kin’s coverage is only available to homeowners in Florida and Louisiana, states known for significant impacts from natural disasters. Kin uses a unique underwriting formula to price its insurance policies compared to traditional insurers, using local market values, property records and satellite imagery to assess value and risk. The company’s standard coverage is specifically designed to protect homeowners from expensive repair costs associated with numerous perils, including windstorms, fires, smoke, lightning strikes, hail, explosion, theft and vandalism. Flood and sinkhole coverage can be purchased separately as endorsements. Like Florida Peninsula, Kin is rated A (Exceptional) by Demotech.
Learn more: Kin Insurance review
How much is home insurance in Florida?
The average cost of homeowners insurance in Florida is $1,648 per year for a $250,000 dwelling coverage policy. This is about 19% higher than the national average premium of $1,383 per year for the same amount of coverage. However, the average rate in your area may vary drastically depending on your proximity to the coast and other risk factors. The average premium in coastal Miami is $3,090 per year, for example, while homeowners in inland Orlando pay an average of $1,432 per year.
Several additional factors also affect your Florida insurance premium. Your home’s location may have the most significant impact on your property insurance rate and the availability of standard coverage. However, the age of your home, roof age, marital status, credit-based insurance score and claims history can also impact your Florida premium.
Common causes of home damage in Florida
Florida’s location between the Atlantic Ocean and the Gulf of Mexico is a prime area to be hit by tropical storms. Florida endures more hurricane landfalls than other states. Due to the high possibility of hurricanes and flooding, Florida homeowners should consider the potential damage resulting from these occurrences when choosing their insurance coverage.
Common causes of claims in Florida
Understanding the common causes of home damage could help you choose the appropriate coverage. Homeowners insurance claims are frequent in Florida, especially for properties along the coastline. Here are some of the most common types of damage that cause Floridians to file home insurance claims.
- Floods and water damage: Floods often occur in Florida because of the state’s coastal location and near sea level terrain. Heavy rains and storm surges can cause extensive flooding and water damage, even to inland locations. However, flood damage is usually not covered in a standard homeowners insurance policy, so you will likely need to purchase a separate flood insurance policy.
- Wind: High winds and wind-related damage are commonly associated with hurricanes and tropical storms. In Florida, wind-related damage can be incredibly costly. Millions of homes are at risk of being damaged or destroyed by hurricanes. Home insurance typically includes windstorm coverage, and in Florida, carriers are required to cover hurricanes and tropical storms. However, a separate hurricane deductible is required for named storms and typically runs 1-5% of your dwelling coverage amount.
- Fire: House fires are not uncommon in Florida. Hurricanes and extreme weather can cause damage to your home’s electrical system, which might start a fire. The good news is standard home insurance policies cover accidental fire damage. However, you may want to consider whether you have enough dwelling coverage to rebuild your home if it gets destroyed by a fire and personal property coverage to replace your items lost from a fire.
How to find home insurance in Florida
The Florida homeowners insurance market is the most volatile in the U.S. and ever-changing. Rampant roof replacement fraud schemes and runaway property claim litigation impact all Florida residential insurers financially. As a result of major underwriting losses due to these factors, numerous carriers have either non-renewed policyholders in the last year or have stopped writing new business in the state to reduce their risk. Of the insurance providers that continue to write new business in Florida, many only offer coverage in certain locations if your home has certain damage-mitigation features or a roof less than 10 years old.
If you live in an area further inland, you may have more home insurance options. You may be able to get quotes online and purchase coverage more conventionally. But if you live in a higher-risk area, especially near the coast, your shopping process may be more challenging. You may have a harder time securing homeowners insurance coverage due to the risk of catastrophic damage in your area. However, it is possible to find the best homeowners insurance in Florida in these areas, too. These tips could help you secure coverage in the Sunshine State:
- Start shopping early: When shopping for home insurance in Florida, you will likely want to give yourself plenty of time to secure coverage. You may need more time to find a homeowners insurance company that fits your needs due to the nature of the market.
- Check with your preferred provider: Although coverage in higher-risk areas may be restricted, asking if your preferred insurance carrier writes homeowners policies in your ZIP code can’t hurt.
- Talk with a local agency: Local insurance agents are likely to have experience insuring homes in higher-risk zones.
- Work with a broker: An insurance broker works for you, not an insurance company. If you are not sure where to turn to get coverage in a higher-risk area, a broker could help you navigate the complex market.
If you cannot find homeowners insurance coverage, you may need to turn to Citizens Property Insurance Corporation as a last resort. Citizens is Florida’s “Fair Access to Insurance Requirements” (FAIR) plan carrier. Although coverage might not be as robust as a private insurer plan, Citizens typically offers standard coverage to homeowners who have no private market options, but it is not guaranteed based on your risk profile. In some cases, you may need to obtain coverage through a surplus carrier, which is a non-admitted insurer that is not regulated by the state’s Office of Insurance Regulation and can charge above-market rates.
Frequently asked questions
- Is the Florida homeowners insurance market on the brink of collapse?
- Florida flood insurance
- Florida windstorm insurance
- First-time home buyers insurance
- Cost of flood insurance
- Hazard Insurance
- Does homeowners insurance cover roof leaks?