Florida homeowners insurance rates continue to rise. Since 2016, rates have increased by 33%. However, the rates differ by county. To avoid paying a higher premium, consider taking advantage of discounts for adding certain protective devices to your home. Flood damage is one of Florida's most popular claims.
Since 2016, rates have increased by 33%
The state of Florida is seeing a spike in homeowners insurance rates. According to the Insurance Information Institute, Florida's property insurance rates have increased an average 33% per year since 2016. This increase is above the national average, which increased by 10.9%. This isn't the only reason Florida insurance prices have gone up. Small in-state insurers are having a hard time competing in the state. In fact, six Florida insurance businesses declared bankruptcy this year.
Partly, the rise in insurance prices is due to increased storms. This has resulted in an increase in reinsurance cost. Some reinsurers are withdrawing from Florida while others raise rates. The consumer pays 35% to 50% of these premiums.
Florida flooding is a frequent claim.
Flood damage coverage should be added to your homeowner's policy in case of flooding. Florida is known for its severe weather. You need to make sure that your policy covers any possible damage. Floods are a serious threat to your home that can lead to major damage and may cost you dearly to repair.
Flood damage can result in thousands of dollars worth of damage, including structural and mold damage. Homeowners are faced with the unfortunate reality of water damage, no matter if it was due to a hurricane. Florida homeowners insurance protects against flood damage. Flood damage can also happen from mudflows. One inch of water in your home could cause damage worth thousands of dollars.
Florida homeowners insurance covers liability.
Liability coverage is an important component of homeowners insurance. It covers any medical expenses you incur after an injury to someone else. It also covers other possible expenses that could arise due to negligence. Liability coverage must be sufficient to cover expenses arising from negligence if you are sued. It is a good idea to hire an agent who has experience in reviewing policies and ensuring you get the best rates.
Florida home insurance also includes liability coverage. The amount of coverage will vary depending on the type of property and its contents. If you own a detached garage, you will need separate insurance for it. Typically, the limits for these structures are 2% or 10% of the amount of coverage on the main dwelling. Higher limits can be purchased if desired. Your agent should be informed if your detached structure is rented out or used for business purposes. These types of situations might require special coverage.
Get Discounts on Protective Devices for Your Home
Homeowners who add smart home technology to their homes may be eligible for discounts from insurance companies. Farmers, Liberty Mutual, USAA and USAA all offer discounts for ADT systems. However, each state's qualifications might vary. These discounts could reduce the overall cost of smart home upgrade costs and encourage safer homes.
Smart home technology is not the only way to protect your house. You could install an alarm or smoke detector. These devices can help to protect your home from theft or fire. These devices can reduce your property insurance premiums.