The Sunshine State may be a gorgeous place to live, but its residents also face several hazards each year. As a coastal state, Florida is susceptible to natural disasters, such as hurricanes and sinkholes, which drives premiums sky high. As recently as October 2020, Tropical Storm Eta caused more than 14 inches of rain in South Florida. Although Florida writes more flood insurance policies than any other state, flood coverage is usually not included with the average Florida homeowners insurance policy.
The average annual home insurance premium in Florida is $1,353, just slightly more than the national average rate of $1,312 per year. While there are dozens of companies on the market, rates in Florida can still vary significantly, making it that much more important for you to shop your options to find the best homeowners insurance in Florida for your home.
Best home insurance companies in Florida
There are plenty of options for home insurance in Florida, but not all are created equal. Each year, the J.D. Power & Associates U.S. Home Insurance Survey evaluates top insurance providers based on customer satisfaction. As a regional provider, Security First Insurance is not included in the survey, but all other companies make an appearance, with Allstate and State Farm receiving the highest scores from our picks.
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power customer satisfaction score|
|Allstate||$1,410||829 / 1000|
|Chubb Insurance||$1,417||778 / 1000|
|State Farm||$1,404||829 / 1000|
|Travelers||$918||803 / 1000|
Between having agents in well over 150 cities in Florida and its convenient mobile app that allows users to take full advantage of their policies, Allstate is an excellent provider for homeowners in the state. There are multiple ways to save on your premium, such as being a new home buyer or having a good payment history. As vacation homes contribute more than $27 billion to Florida’s economy, Allstate’s HostAdvantage home-sharing insurance could come in handy, which offers coverage for damage and theft caused by renters.
Chubb homeowners insurance offers extensive coverage for Florida homeowners. 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. For a storm-heavy state such as Florida, Chubb’s pre-included “extras” could also benefit homeowners with tree removal and home inspections to prevent problems before they escalate.
For those looking for Florida-based providers, Security First is a great option to begin looking for the best homeowners insurance policy as it is the most affordable on our list. You can choose your insurance based on your home’s age and receive discounts for living in a secured community and having wind-resistant home features. Security First also has a host of optional coverages, including flood, golf cart coverage and coverage for screened enclosures.
State Farm has local agents in more than 100 locations throughout Florida. Although homeowners in the state may need to make more claims due to Florida’s typical severe weather, State Farm’s above-average rating in the 2020 J.D. Power U.S Auto Claims Satisfaction Study and A++ (Superior) financial strength rating from AM Best reflect its ability to make claim payouts effectively. If you take extra precaution by installing impact-resistant roofing materials, you may even qualify for an additional discount.
Travelers offers home insurance well below the Florida average premium at $918 per year. For homeowners looking for even more savings, there are discounts available for having protective devices installed, a green-certified home and being loss-free for a period of time. Travelers also has optional coverage for water backup and sump pump failure.
Additional companies to consider
American Strategic Insurance
American Strategic Insurance (ASI) is a Florida-based insurance provider worth your consideration when you live in a high-risk area. The provider specializes in catastrophe claims and since being acquired by Progressive, has joined forces with the third-largest carrier to make bundling a home and auto policy available to an even larger consumer base. ASI offers coverage for additional living expenses, flood insurance through NFIP, and coverage for seasonal and investment home insurance.
Kin Insurance is one of the newer providers available on the market today, but it’s one that is worth a closer look. It’s mostly available to homeowners in Florida and California, two states known for their many land- and weather-related hazards. Kin uses a different formula to price its insurance policies, using local market values, property records and satellite imagery to assess value and risk. Its coverage is specifically designed to protect homeowners from hurricanes, sinkholes and floods for extra peace of mind.
Average cost of homeowners insurance in Florida
The average cost of homeowners insurance in Florida is $1,353 per year for a $250,000 dwelling, but this rate may vary drastically depending on your proximity to the coast. For example, homes that are nearer Florida’s coastlines have an increased likelihood of experiencing hurricane and flood damage, making them riskier for providers to insure.
There are several factors that can affect your Florida insurance premium. For example, expect to pay significantly more if you live in a hurricane zone. Hurricane Michael, which hit Florida in 2018, caused $7.4 billion in insured losses alone. Your home’s location may have the most significant impact on your home insurance rate. However, your age, gender, marital status, credit score and claims history will also impact your premium.
Home insurance considerations in Florida
Because of Florida’s location between the Atlantic Ocean and Gulf of Mexico, it has a less than ideal storm frequency. Due to the high possibility of hurricanes and flooding, it is important for homeowners to consider the potential damage that can result from these occurrences when choosing their coverage.
Florida common causes of loss
Homeowners insurance claims are frequent in Florida, especially for homes along the coastline. Here are some of the most common losses that Florida homeowners face.
Floods and water damage
Floods happen often in Florida because of the state’s coastal location. According to the Federal Emergency Management Agency (FEMA), Florida homeowners were paid for 34,995 flood claims in 2019. After a major hurricane, it’s possible for heavy rains and storm surges to cause extensive flooding and water damage. However, standard home insurance doesn’t cover flood damage, so you’ll need to purchase a separate flood insurance policy.
High winds and wind-related damage are most commonly associated with hurricanes and tropical storms. In Florida, wind-related damage can be incredibly costly. There are about 2,830,201 Florida homes that are at risk of getting damaged or destroyed by a category 5 hurricane, the most severe type. Home insurance does cover wind damage, and in Florida, carriers are required to cover hurricanes. However, a separate hurricane deductible may apply.
House fires are not uncommon in Florida. Firefighters responded to a home fire call every 93 seconds in 2019 throughout the U.S., according to the Insurance Information Institute. In 2020, FEMA indicates Florida saw 69 home fire fatalities. Additionally, hurricanes and extreme weather can cause damage to your home’s electrical system, which can start a fire. The good news is, standard home insurance policies cover 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.
Home insurance coverage options in Florida
Most Florida homeowners insurance policies come with standard coverages such as for your home’s structure, detached structures, personal property and loss of use. Common perils such as theft and fire are included with basic coverage as well. However, to be best prepared for state-specific losses, Florida homeowners will likely want to consider purchasing additional coverage.
Some coverages for homes in Florida that may be worth considering include:
- Flood insurance: Although floods can be widespread in Florida, coverage for it typically has to be purchased separately. Flood coverage can be purchased through the National Flood Insurance Program (NFIP) to cover any flood-related damage to your home and personal contents.
- Guaranteed replacement cost: Losses can be difficult to plan for as they can happen at any time. Similarly, the expense to repair or replace your home may exceed your coverage limits. To help plan ahead for extensive loss, Florida homeowners may consider home insurance companies that offer guaranteed replacement cost.
Frequently asked questions
What is the cheapest homeowners insurance in Florida?
Because rates in this state tend to be higher than the national average, homeowners may be primarily interested in finding a cheap home insurance policy in Florida. However, it is important to ask yourself what your potential losses are in the event of a major weather event, and purchase a plan that best protects your financial investments
What do I need to get home insurance in Florida?
To purchase homeowners insurance in Florida, you’ll need your personal identifying information and financial records. Your Florida insurance agent will also want to know several details about the home you are insuring, such as when it was built and what renovations or improvements have been made. There will also likely be some discussion regarding your home’s resistance to storm damage and whether there may be additional types of coverage or discounts needed.
Do Florida homeowners insurance policies cover hurricanes?
Hurricanes are required to be covered in standard Florida homeowners insurance policies. However, it could be a good idea to check your policy and add additional coverage for non-hurricane storm-related losses if needed. To avoid being stuck with significant out-of-pocket expenses following a storm, discuss policy limit recommendations with your agent when you purchase a policy.
While most Florida home insurance policies include hurricane and wind coverage, homeowners may face higher or separate deductibles for hurricane losses. However, some providers offer discounts for installing hurricane-resistant materials or taking similar precautions.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.