How To Get Inexpensive Homeowners Insurance In Florida: We’ve Got 10 Tips

Straight off the bat, we’ve got three no-brainer tips for Floridians:

1. You should take some time to understand hurricane deductibles.
2. You need to choose Actual Cash Value (ACV) carefully.
3. You don’t want to skip and overlook flood insurance.

But that’s just the start. Once you’ve skimmed through our guide below, you’ll have a much clearer idea of how to get cheap homeowners insurance in Florida.

Here’s a scenario to think about:

Let’s say you are relaxing with our family on your porch and enjoying the Florida sunshine…

Then, all of a sudden, dark clouds start to gather, and the wind picks up. Without any warning, a brutal hurricane rips your roof to shreds.

Will your home insurance cover the repairs? Or will you end up with a hefty bill and a sinking feeling in your stomach?

For years, Worth Insurance has helped Florida homeowners figure out what the best insurance coverage is to meet their needs.

10 Tips To Get Inexpensive Homeowners Insurance In Florida

1 - You Really Need To Shop Around & Compare Quotes

It might sound obvious, but you cannot overlook this tip. You should not settle for the first quote you receive. You need to get quotes from multiple insurance providers to compare rates and coverage options. At Worth Insurance, we have access to a wide range of insurers in Florida and can do much of the legwork for you, which will save you a significant amount of time.

Also, many Floridians bundle their auto and home insurance into a single plan. As you would expect, this results in major savings on premiums and is worth considering. You should take a read through our comparison for insights on the top home insurance companies in Florida.

2 - It Often Makes Sense To Increase Your Deductible

The deductible is the sum you’ll pay out-of-pocket before your insurance starts to kick in. Going with a higher deductible will lower your premium. You just need to make sure that you have enough savings to cover the deductible in case of a home insurance claim.

3 - Do Your Best To Maximize Any Available Discounts

As you might have seen, many insurers in Florida like to offer discounts that can end up significantly reducing your premium. If you take advantage of these discounts, it’ll make a real difference in your annual costs and potentially save you a ton of money. Installing a security system might qualify you for a discount. That’s just one example of a safety measure that may result in a discount. You will need to ask about possible discounts to avoid missing out.

4 - Choose Actual Cash Value (ACV) Carefully

With insurance payouts, you need to know how your damaged property is valued. Actual Cash Value (ACV) will factor in depreciation. What does this mean? Well, you’ll receive the current market value of the item, not the cost to buy it new. On the flip side, Replacement Cost Value (RCV) covers the expense of replacing your possessions with brand-new equivalents.

Yes, ACV usually comes with lower premiums, but you could end up paying a significant amount out-of-pocket for replacements if you have a claim. You will, of course, need to think about your budget and risk tolerance when deciding between ACV and RCV. Going with lower coverage limits can reduce premiums but may lead to inadequate financial protection during claims.

5 - You Must Understand Hurricane Deductibles

You will see that most Florida home insurance policies have separate hurricane deductibles. We’ve found that these are typically a percentage of your home’s insured value, which ranges from 2% to 5%. This means you’ll be responsible for paying this deductible before your insurance covers hurricane damage. 

Important: You should make sure you understand your hurricane deductible and have enough savings to cover it.

6 - Don’t Overlook The Need For Flood Insurance

Standard homeowners insurance policies in Florida don’t cover flood damage. When you think about how susceptible Florida is to coastal storms and heavy rainfall, it makes a ton of sense to secure your home with a dedicated flood insurance policy, regardless of your standard homeowners coverage. You can get flood insurance coverage through the National Flood Insurance Program (NFIP) or go with a private insurer.

7 - Explore Options With Citizens Property Insurance Corporation

If you’re having trouble finding affordable coverage in the private market, you should look into options with Citizens Property Insurance Corporation. This is Florida’s insurer of last resort. While their rates are not the cheapest, they can offer essential coverage when you are out of options. We first recommend contacting Worth Insurance to see what we can find for you.

8 - Everything Is Easier With A Clean Claims History

While it’s not always possible, you should aim to avoid small claims. Taking time to focus on home maintenance can help keep your insurance costs down. A history of few or no claims demonstrates lower risk to insurers and can positively impact your premiums.

9 - Think About Ways To Improve Your Home’s Security

If you want lower insurance premiums, it’s a really good idea to take steps to improve your home’s security. Also, at the same time, it helps protect your belongings! You’ll find that most insurers will offer discounts to homes with security systems, smoke detectors, and other types of safety features. It makes sense to take these steps and improve your home security.

10 - Review Your Policy Regularly

It’s really important to review your policy annually or whenever you make significant changes to your home. This will ensure that you have adequate coverage and help you identify potential savings or discounts you might have missed.

6 Homeowners Insurance Coverage in Florida

It’s super easy to get lost in the jargon of insurance policies, especially when there are so many factors to think about. But knowing what your insurance actually covers is crucial for making smart decisions and making sure you have the right protection. You also need to understand coverage limits to balance cost and protection. Let’s go through it all in plain English:

1 - Dwelling Coverage

This is the core of your policy. Dwelling coverage protects the physical structure of your house itself, such as the walls, roof, floors, and even built-in appliances. You can think of it as the insurance that would help you rebuild if a fire or hurricane damaged your home.

2 - Other Structures Coverage

If you’ve got a garage, shed, fence, or even a swimming pool, this coverage should be on your radar. This will protect those detached structures on your property. It’s important to make sure this coverage adequately reflects the value of these structures.

3 - Personal Property Coverage

Personal property coverage is what protects the belongings inside your home. So, this includes furniture, electronics, clothing, and appliances. Those types of belongings are all covered under this section. It’s worth taking an inventory of your possessions every once in a while to make sure you have enough coverage to replace them if they’re damaged or destroyed.

4 - Loss of Use Coverage

What if a fire forces you out of your home while repairs are being done? Where would you stay? Loss of use coverage helps pay for those extra living expenses, such as hotel stays, meals, and even pet boarding, while your home is uninhabitable.

5 - Personal Liability Coverage

Accidents happen. If someone gets injured on your property and you’re found liable, personal liability coverage is designed to protect you financially. It can help cover legal fees, medical expenses, and any settlements or judgments against you.

6 - Medical Payments Coverage

This coverage helps pay for medical expenses if someone is injured on your property, regardless of who is at fault. It can help avoid potential lawsuits and ensure the injured person gets prompt medical care. Consulting insurance commissioners can provide valuable information on typical rates and consumer complaints.

Why Is Florida Home Insurance Premium So Expensive?

Florida homeowners face some of the highest insurance premiums in the nation. But why? Well, it’s not just bad luck. There is (quite literally) a perfect storm of factors contributing to this insurance crisis. Here are just some of the contributing factors:

Lawsuits & Fraud

As you may be aware, Florida has become a hotbed for insurance-related lawsuits. Many of these are frivolous or even fraudulent. This massively drives up costs for insurers, who pass those costs on to homeowners in the form of higher premiums. Individuals with poor credit often face higher home insurance premiums.

Hurricane Alley

Florida is a prime target for hurricanes - and these powerful storms cause widespread damage, which leads to a huge number of insurance claims. The financial strain of these frequent and costly claims forces insurers to raise rates to stay afloat.

Reinsurance Costs Skyrocket

It’s best to think of reinsurance as insurance for insurance companies. As the risk of hurricanes and other catastrophes in Florida increases, so does the cost of reinsurance. These costs inevitably trickle down to homeowners’ insurance premiums.

The consequences of this crisis are hitting homeowners hard in Florida. Here’s what’s happening:

Soaring Premiums

Florida’s average home insurance rates are now significantly higher than the national average. This makes it a major financial burden for many residents.

Shrinking Options

We’ve seen some insurance companies simply stop writing new policies in Florida. Others have become extremely selective about who they insure, which can make property owners in Florida feel like they have to jump through many hoops to get the coverage they need.

Policy Cancellations

Florida homeowners are even facing policy cancellations and non-renewals. That leaves them scrambling to find new, often more expensive, coverage.

While the situation is undoubtedly very challenging, having a basic awareness of the above factors will help you browse through the Florida insurance market more effectively.

5 Steps For Filing A Home Insurance Claim In Florida

We hope you never have to file a claim, but preparedness is key. Here are some tips to help you whizz through the process with confidence at an uncertain time:

1. Document the damage thoroughly with photos and videos.
2. Report the damage as soon as possible to your insurance provider.
3. Make sure you are present during the adjuster’s inspection to point out all damage.
4. Carefully review the claim estimate and negotiate if necessary.
5. Hire reputable contractors for repairs and keep all receipts.
6. Receive payment from your insurance company, minus your deductible.

What Do You Need To Know About Bundling & Discounts?

As we briefly mentioned earlier, bundling your home and auto insurance policies is a fantastic way to save money on your insurance premiums. You’ll find that many insurance companies offer discounts for bundling multiple policies, which can range from 5% to 15% off your total premium. Insurance companies view customers who bundle their policies as lower-risk, as they are more likely to be loyal and less likely to file claims.

In addition to bundling discounts, many insurance companies also offer other discounts for things like:

• Security systems or smoke detectors in your home.
• Being a non-smoker or having a smoke-free household.
• Membership to professional organizations or alumni associations.
• Working in a certain occupation and having a good credit score.

We should also mention that it’s always a good idea to ask your insurance agent or company representative about any discounts you may be eligible for. You can shop around and compare rates from different insurance companies to find the best deal.

Do Home Improvements & Security Actually Make A Difference?

Yes, they sure do! Trying to make improvements to your home can increase the property’s value and potentially lower your insurance premiums at the same time. When it comes to finding things to improve, there is no shortage of low-hanging fruit. Here are some examples of home improvements that can lead to lower insurance rates:

• Installing storm shutters or impact-resistant windows.
• Upgrading your roof to a more durable material.
• Installing a security system or burglar alarm.
• Adding deadbolt locks to your doors.
• Installing a fire suppression system.

These types of improvements can help reduce the risk of damage to your home, which can lead to lower insurance premiums. Some insurance companies may offer discounts for certain types of home improvements, so it’s always a good idea to check with your insurance agent or company representative. If you invest in these upgrades, you will bolster your home’s safety and possibly save money on your insurance rates. It’s really a win-win.

How Should You Manage Your Insurance Policy?

There are a few things you can do to make your life easier when it comes to managing your insurance policy as a homeowner in Florida:

• Keep track of your policy limits and coverage levels.

• Make sure you have enough insurance to cover your assets.
• Review your policy regularly to ensure it still meets your needs and budget.
• Think about increasing your deductible to lower your premiums.
• Double-check that you have enough savings to cover the deductible.
• Always take advantage of discounts and special incentives offered by the provider.

If you have the above at the front of your mind, it’s hard to go wrong with managing your policy.

So, How Can Worth Insurance Help You As A Floridian?

At Worth Insurance, we have plenty of experience getting great deals in the Florida home insurance market for property owners - and we’ve learned a thing or two along the way.

Our experienced agents can:

• Compare quotes from multiple insurers to find you the best coverage at the best price.
• Find customized coverage and tailor policies to your specific needs and budget.
• Provide expert advice and guide you through the insurance process.
• Assist with claims and represent your interests with insurers.

We Can Help You Find Affordable Home Insurance In Florida

There is no reason why this process has to be stressful, especially when you have dedicated insurance agents who are ready to represent your interests with insurers and help you find the best possible coverage. At Worth Insurance, we are firmly committed to helping you protect your home and peace of mind. Our experienced agents are ready to answer your questions!

Contact us for a personalized quote, and we’ll help you find suitable coverage in the Florida insurance market.