We analyzed companies with the cheapest coverage, along with some of Florida’s unique home insurance features.
Florida is a great place to live if you love the warm weather. However, there are also hazards. The state’s many natural disasters and regular occurrences small problems like leaking pipes can make homeowner’s insurance expensive. In addition, the insurers often pass on litigation costs to the consumers. These risks have led to the exodus of large insurance companies from Florida.
Residents of Florida still have plenty of options when it comes to getting cheap homeowners insurance. NerdWallet compared rates and coverage from over 100 insurance companies in Florida to determine the most affordable homeowners insurance.
Florida home insurance companies
The state is home to many of the biggest homeowners insurance companies in America. The majority of coverage is provided by smaller companies.
Universal Property
Universal Property offers standard coverage for home and property, as well as liability coverage. However, there are several optional coverage options, such utility service line or debris removal, that Florida residents may find helpful. You can also get discounts for devices that protect against wind damages.
Citizens Property Insurance
Citizens was established by the Florida Legislature in 2002 to provide insurance of last resort for homeowners who aren’t eligible for private coverage. A severe storm can prove costly for policyholders because Citizens pays all claims using premiums collected. Citizens can charge an assessment up to 45% of the annual premium if it is unable to pay all claims.
American Strategic Insurance
Progressive acquired American Strategic Insurance (or ASI) in 2015. However, the ASI name continues to be used in Florida. Progressive policyholders can access many of its services and receive discounts when they bundle with other Progressive policies.
State Farm
State Farm Florida home insurance offers residents a 20% discount on the “increased dwelling limits” add-on. This provides additional replacement cost coverage for homes that are insured for less than what State Farm estimates it will cost to replace them. State Farm’s Home Systems Protection addon covers the cost of fixing your AC if it breaks down during the summer or at any other time.
Florida home insurance at a low price
NerdWallet data analysis shows that Farmers is the best option to get cheap homeowners insurance in Florida. The average rate for Farmers is $1,300 per annum (about $108 per monthly). The complete list is here:
Here are some details about the top home insurance companies in Florida. You should keep in mind that they might not all be available in your locality and may not be the best option for you.
Farmers
Farmers provides standard coverage, with many optional enhancements via its Smart Plan Home. The Enhanced and Premier packages are available at an additional cost. They offer more coverage, such as roof replacement or personal contents replacement. This could be very useful after a major storm.
American Integrity
American Integrity is the only insurance company that offers Florida-only insurance. They offer a variety of optional add-ons to suit homeowners. You can also get coverage for home computers, service lines and watercraft. For those who are eligible, American Integrity also offers private flood coverage.
American Traditions
American Traditions provides standard homeowners insurance coverage for Florida residents even though it is focused on manufactured homes. After a wind mitigation inspection, discounts may be available for homeowners who have taken steps to protect their home from wind damage.
Security First
Security First provides homeowners with both standard and enhanced coverage. Each option covers your home, any attached structures, such as in-ground swimming pools, and liability. It also covers temporary relocation due to an event covered. The actual cost of replacing damaged items or losing them is covered, not a depreciated amount.
Florida’s average cost for home insurance
The average cost of homeowners insurance in Florida is $2,682 annually, according to a NerdWallet data analysis. Rates can vary depending on where you live.
Enter your zip code to get an idea of the average insurance rate for your location.
Why is Florida home insurance so expensive?
According to NerdWallet, Florida is the seventh most expensive state for homeowners insurance. The high cost of homeowners insurance can be explained by several factors, including:
- Extreme weather. Florida’s heat, humidity and heat can have a significant impact on homeowners. The heat and humidity can cause damage to household systems, as well as faster than normal equipment breakdowns. This could lead homeowners insurance claims.
- Natural disasters. Florida is the United States’ hurricane capital, with almost twice the number of landfalls than any other state. Insurers can take on more risk from hurricanes than tropical storms or even severe rainstorms. They pass this cost onto homeowners through higher premiums.
- Legal issues. Consumers often have to pay the costs of litigation. In Florida, there were almost $3 billion in legal expenses in 2019. The bill’s effect on premiums is yet to be seen, even though the Florida government passed legislation.
