Homeowners insurance in Florida

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Homeowners insurance in Florida

Karla Simmons
Vacaville, CA · Member since 2019 · 218 posts · 140 votes

I keep hearing that homeowners insurance is high in Florida because of hurricanes, which makes sense. I am assuming it is not high state-wide, but in the areas that have history of hurricane damage to homes. Is this true? Would somewhere inland such as Orlando or Gainesville have less expensive insurance? And can someone quantify what high insurance cost is? An example possibly? Such as a $300,000 home has annual or monthly premium of $X amount.

Thank you!

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Eric Starks
Investor · Orlando, FL · Member since 2021 · 73 posts · 42 votes
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I live in Orlando and my primary home is worth a little over $300K.  I switched from Securities First this year.  They were jacking up my insurance a rediculous amount each year.  I switched from them to State Farm and I now pay $1,265 which is less than half what I was paying for Securities First.  Now I get this rate by getting as many discounts as possible like, bundling home and auto, getting a wind mitigation inspection, going paperless, etc.  I should point out I switched from State Farm to Securities First years ago because State Farm kept raising my rates.  I guess in Florida, you just have to shop around every 5+ years to see who is offering the best rate. 

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  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes
    4y
    Quote from @Karla Simmons:

    I keep hearing that homeowners insurance is high in Florida because of hurricanes, which makes sense. I am assuming it is not high state-wide, but in the areas that have history of hurricane damage to homes. Is this true? Would somewhere inland such as Orlando or Gainesville have less expensive insurance? And can someone quantify what high insurance cost is? An example possibly? Such as a $300,000 home has annual or monthly premium of $X amount.

    Thank you!

    Several factors:
    1. Florida is a high fraud state and lots of fake claims have been submitted over the years.
    2. Florida is taking the blame for what's going on in other states.

    The first is self-explanatory. Let's look at the second one....in recent years, how many hurricanes have hit Florida compared to other places? After Wilma in 2005, South Florida did not have a cane until Irma in 2017. So that's 1 cane over the past 16+ years. Other parts have been hit, but overall there hasn't been much action in well over a decade. Meanwhile the gulf coast (MI, LA, TX) have been hit, the Outer Banks are getting beat up regularly. Who is paying for that damage? No doubt FL is helping. The excuse has always been that we're refilling the coffers. That made sense at first, but it's been years of filling. 
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  • Account Closed
    New York City / Space Coast FL · Member since 2021 · 16 posts · 15 votes
    4y
    Doesn't need to be a hurricane to cause damage, tropical storms and depressions also cause damage. Further, it matters how homes are constructed and where they are located. This is a slightly biased source, but the data they have does not lie - the number and aggregate value of homes at risk from tropical weather is higher in Florida than anywhere else in the country by a long shot: https://www.iii.org/fact-statistic/facts-statistics-hurricanes
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  • Shawn K HicksBusiness Member
    Real Estate Agent · Gainesville, FL · Member since 2019 · 128 posts · 107 votes
    4y
    Quote from @Karla Simmons:

    I keep hearing that homeowners insurance is high in Florida because of hurricanes, which makes sense. I am assuming it is not high state-wide, but in the areas that have history of hurricane damage to homes. Is this true? Would somewhere inland such as Orlando or Gainesville have less expensive insurance? And can someone quantify what high insurance cost is? An example possibly? Such as a $300,000 home has annual or monthly premium of $X amount.

    Thank you!


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  • Shawn K HicksBusiness Member
    Real Estate Agent · Gainesville, FL · Member since 2019 · 128 posts · 107 votes
    4y

    Up until the last 2 to 3 years, home owners insurance in Gainesville was dirt cheap. For example, an 1,800 square foot home that is 25 to 40 years old with the Roof, HVAC, electrical, plumbing, hot water heater etc in generally good condition, you could expect to pay 850 to 1,500 (1,200 being the sweet spot) annually depending on coverages selected and deductibles. Now, you can raise those figures by 15-20%. Also, many carriers will not cover roof related issues if for example a 3 tab shingle roof is over 15 years old. Some carriers the cut off mark is 10 to 12 years. Some carriers the same goes for hot water heaters & HVAC. They can be working perfectly, but if they're over 15 years old, many carriers will not insure unless they are updated. (Architectural shingles up to 22-23 years old can still pass with an acceptable 4 pt inspection.) 

    Insurance on a new construction comparable square footage home though still more affordable, those costs have gone up as well.

    [email protected]352-871-5770
    Shawn Hicks Realtor530 Reviews
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  • Patricia Bisciotti
    Investor · New Smyrna Beach, FL · Member since 2016 · 4 posts · 3 votes
    4y

    Any thoughts on what insurance company to call in florida for homes that have roofs over 12 years old? Roof is in perfectly good condition. Any companies that do roof exclusions? Insurance costs have skyrocketed  and it's making the rents go way up. Becoming very unaffordable for many tenants. Florida needs to get a handle on this.

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  • Barclay Chan
    Rental Property Investor · San Lorenzo, CA · Member since 2016 · 22 posts · 7 votes
    4y
    Quote from @Patricia Bisciotti:

    Any thoughts on what insurance company to call in florida for homes that have roofs over 12 years old? Roof is in perfectly good condition. Any companies that do roof exclusions? Insurance costs have skyrocketed  and it's making the rents go way up. Becoming very unaffordable for many tenants. Florida needs to get a handle on this.

     @Patricia Bisciotti, were you able to find an insurance company? I am in that boat now. Please DM me your insurance agents contact information

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