Best home insurance companies in Florida
- 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.
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.
When shopping for home insurance, Florida residents may want to work with a local insurance agent for guidance. 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 could benefit homeowners, such as tree removal and home inspections. Although its coverage comes at a higher-than-state-average price tag, Chubb offers some of the most robust protection in the state.
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 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 and AM Best do not rate Florida Peninsula because of its smaller market share, but the company, which is based in Boca Raton, 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 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.
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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: $150,000, $250,000, $350,000, $450,000, $750,000
- Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
- Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
- Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
- Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
- 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.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to an analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.
What is the average cost of 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.
Average annual premium by dwelling coverage
The amount of coverage you purchase is one of the biggest factors that impacts your home insurance premium. More coverage generally costs more money, but also provides more financial protection. Below are the average rates by coverage level for each of our top picks for Florida home insurance.
|American Strategic Insurance (Progressive home)||$563||$863||$1,137||$1,339||$1,700|
Why is homeowners insurance so expensive in Florida?
Florida has always been a relatively risky state from an insurance perspective. Its long coastline and subtropical climate make it susceptible to tropical storms and hurricanes, and its narrow shape means that even inland cities are at a higher risk for damage than in many other states. When the risk of damage is higher, insurance companies have to charge higher premiums to ensure they can afford to pay claims.
However, 2022 has brought fears that the Florida home insurance market could collapse. On top of the risk of natural disasters in the state, there has been an increase in fraudulent roofing scams and litigation. These schemes are putting massive financial pressure on Florida home insurance companies. Many carriers have voluntarily left the state, canceled tens of thousands of policies or gone insolvent. The companies that are left have little choice but to raise rates in an attempt to stay financially healthy enough to operate in such a tumultuous environment. The Florida legislature recently passed a home insurance reform bill aimed at improving the long-term health of the market. Eventually, Florida homeowners may see premium reductions, but rates are likely to still be high for the next several years.
How to save money on homeowners insurance in Florida
Insuring a home in Florida isn’t likely to be cheap. Having realistic expectations for your premium may be important as you shop for coverage. However, there are some strategies you can use to find the lowest premium possible:
- Understand your coverage needs: While finding cheap coverage may be important, price isn’t everything. Before you try to find the lowest-priced policy, be sure you know what kind of coverage and what levels of coverage you need. Undercutting your coverage to get a lower rate could leave you in a stressful situation if you file a claim.
- Shop around: As you can see from the average rates of our top picks, rates vary widely between companies. Shopping around and comparing quotes can help you see how different companies stack up for the coverage you need.
- Install wind-mitigation features: By law, Florida home insurance companies have to offer you discounts for certain wind-mitigation features like roof straps and hurricane shutters. Not only could these features help protect your home from damage and give you peace of mind, but they could lower your insurance premium.
- Maintain your roof: Newer roofs generally help qualify you for lower rates, since it’s less likely that they’ll be damaged than older roofs. In a state so prone to wind damage, having a newer roof, or at least a well-maintained roof, could help you save.
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 the best 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?
- When is hurricane season in Florida in 2022?