Miami, Florida is the second-most populated city in Florida, and is surrounded by beautiful ocean waters as well as being home to amazing culture and nightlife. But living in this vibrant city will cost you more in homeowners insurance, with averages of $2,954 per year for $250,000 in dwelling coverage — well above the national average of $1,312 per year. Bankrate set out to examine a number of carriers to see which ones offer cheap homeowners insurance in Miami, while offering other benefits such as multiple coverage options, discounts and high customer service ratings.
Best cheap home insurance companies Miami
There are a wide range of national carriers available, and several of them offer both competitive rates for premiums and high customer service ratings. Allstate and State Farm are two examples of offering cheap insurance rates in Miami and ranking higher for overall customer satisfaction in the 2020 J.D. Power Home Insurance survey.
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Nationwide offers a wide range of insurance products, including complete homeownership policies. Nationwide also features the Brand New Belongings program, which replaces or repairs your belongings, no matter the age or the condition. Nationwide has a generous discount program for additional savings on your premiums. Discounts such as bundling, gated community, a home renovation credit and a roof rating discount are a few examples of the many ways you can save with Nationwide.
While Travelers may not be the least expensive or have the highest J.D. Power rating on our list, it does offer highly competitive homeowners insurance rates. The long list of potential discounts available, such as policy bundling and a green home discount, are worth a second look as well. Travelers has a financial strength rating of A++ Superior from AM Best, which highlights the strength of one of the country’s largest insurance providers.
Like other carriers, Progressive offers a full lineup of homeowners insurance options and discounts. The discounts are quite numerous, and cover potential savings for everything from paperless statements to requesting your policy quote in advance of the renewal date. Progressive was middle-of-the-road as far as our rate quotes, but the rates were still well below the overall average, showing how much you might be able to save through Progressive.
As one of the largest insurance providers in the U.S., Allstate offers a full range of policy options, discounts and digital assets for policy management. The highly rated app gives you a long list of features available right at your fingertips, including submitting claims and making updates to your policy. You can also have your list of personal belongings in the app, which acts as your digital locker in case you need to file a homeowners policy claim later on.
State Farm, which is the largest provider of insurance in the U.S., uses a network of over 19,000 agents to help achieve its strong customer service ratings, such as the J.D. Power score. But if you prefer to work solo, you can start your quote, purchase a policy and complete all policy management either online or via the popular mobile app. And though State Farm has the highest rates of the carriers reviewed, the insurance rates in Miami were still far less than the annual average of $2,954.
Other Miami home insurance coverages to consider
With Miami located at the Southern tip of Florida, it is exposed to a number of perils, including hurricanes, flooding and windstorms. Although homeowners insurance is not legally required in Florida, it offers additional protection in case of damage from theft or extreme weather effects. But not all coverages are standard, which means it is a good idea to review all possible coverage options with a licensed insurance agent who is familiar with peril events in Miami.
- Flood insurance: Flood insurance is not typically included in a homeowners insurance policy. However, because of the risk of storm surge after a hurricane or other severe thunderstorms, adding this additional coverage to your policy could offer a greater level of protection from flood damage.
- Wind/hurricane: Another peril associated with severe storms and hurricanes is excessive wind. Wind is a covered peril with most homeowners insurance policies, however, hurricanes may be excluded from this type of coverage. You may be required to purchase a separate hurricane policy to cover events, such as damage from wind, for an added benefit.
- Extended replacement coverage: If you are concerned about the cost of replacement or rebuilding becoming too expensive due to a peril event, you can purchase extended replacement coverage which offers additional dwelling coverage.
Home insurance discounts in Miami
Since Miami is subject to multiple perils, this does drive up the homeowners insurance costs in the area. Taking advantage of as many discounts as possible is a great way to save on your premiums. Look for eligible discounts such as:
- Multi-policy/bundling: If you already have an existing policy with a carrier such as your auto insurance, ask about bundling and saving more by adding your homeowners insurance in Miami to the same carrier.
- Monitored systems: Installing a monitored burglar alarm and/or fire systems is another way to save. You not only have the added benefit of possible prevention of a peril, such as fire or theft, but you could also save on your premiums.
- New homebuyers: If you purchase a new construction home, ask your licensed insurance agent about possible new home savings. Carriers may offer savings if your home is less than 12 months old.
Finding cheap homeowners insurance in Miami requires research and exploring all possible discounts for maximum savings. The three mentioned above are only a few of the numerous possibilities. Other discounts, such as being a non-smoker or living in a gated community, may help you save even more on your policy.
Frequently asked questions
What is the best home insurance company?
The best home insurance company is one that works best for your coverage needs and offers the best protection for your budget. Homeowners may use factors such as financial ratings, customer service reviews and coverage options to determine the best carrier to choose. Bankrate has reviewed several national carriers and found USAA, Lemonade, Travelers and AAA are all highly-rated carriers worth considering.
How much does home insurance in Miami cost?
The average cost of homeowners insurance in Miami is $2,954 annually for a $250,000 in dwelling coverage policy. However, your insurance rates are established based on personal inputs, including the exact zip code, coverage options and eligible discounts you choose, plus your credit score.
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 may be different.