Florida is many things. A vacation destination, a state replete with the best beaches in America, home to the oldest city in the country, a place with a booming economy and an emerging arts scene. The Sunshine State also tops out another list. Florida has the highest homeowners insurance rates in the country. What’s the root cause of this surge, and what do you need to know about homeowners insurance in the Sunshine State. In a process created by noted industry veterans, your Realtor and BKS risk consultant partner to ensure the intricacies of your property’s architecture, location, and purchase logistics are all taken into consideration for a smooth closing. Smith’s risk consultants assess more than 25 insurer partners to customize an insurance program tailored to your lifestyle. We navigate complex coverage needs such as sinkhole, high-risk flood zones, and hard-to-place historic homes with unbiased, holistic advice, providing personalized coverage for even the most complex and unique properties. Here’s where you need to know about Insurance Rates in the Sunshine City:

Flood not covered by Homeowners Insurance Policies in Florida

Homeowners insurance policies don’t cover damage done by floods. Flood insurance must be purchased as a separate policy and is available through many insurance carriers via the National Flood Insurance Program (NFIP), which is designed to keep flood insurance rates affordable.  

What’s the cost?

On average, an insurance policy premium in Florida is $700. Due to the likelihood of flooding, homeowners are strongly encouraged to purchase a policy to protect themselves. Florida Homes are Uniquely Susceptible to Storm Damage We live in a flat state. Florida’s “highest elevation” is the lowest high point of all the states, and Florida also has the least difference between the highest and lowest elevation across the state. Florida also has the most coastline out of the lower 48 states, bordering both the Atlantic Ocean and the Gulf of Mexico. These factors culminate to make homes highly vulnerable to storm damage.  

High Florida Property Values Lead to High Rates

Property values are on the rise in the state of Florida; properties along the coast especially. Those coastal properties more often than not fall into the luxury property category. Fixing up a luxury residence after a storm can prove costly, and those inferred costs can adversely affect homeowners insurance rates. This is why it’s so important that you secure an accurate home valuation. This will help ensure you are adequately covered but not overpaying for your homeowners insurance.  

Homeowners Insurance Fraud in Florida has Skyrocketed

A huge reason behind high homeowners insurance rates in Florida is the ever-increasing issue of homeowners insurance fraud. Assignment of Benefits (AOB) fraud accounts for a huge percentage of this kind of fraud. It is extremely important to always call your insurance agent first if you suspect damage to your home has occurred. Don’t sign an AOB form or allow contractors access to your home or roof without your insurer’s approval.  

Not all Homeowners Insurance Policies are the Same

While there are certain basics that most standard homeowners insurance (HO3) policies adhere to, not all policies or insurers are the same. A slightly higher premium can make a big difference in coverage and could also lower your deductible. When shopping for a Florida homeowners insurance policy, discuss your situation with an agent, and look beyond pricing to help ensure you are getting the best policy for your specific needs. Floridians live in a unique state, so it shouldn’t be surprising that their homeowners insurance needs may also be unique. Understanding the ins and outs of insurance and the specific challenges Florida poses can help you make an informed choice.

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