Florida homeowners insurance rates are increasing. The rates have risen by 33% since 2016. The rates are different for each county. For a lower premium, you might consider getting discounts for certain protection devices. Flood damage is a common claim in Florida.
Rates have increased by 33% since 2016
Florida is experiencing an increase in homeowners insurance premiums. According to the Insurance Information Institute which tracks property insurance rates, Florida rates have increased by 33% on average since 2016. This increase is much higher than the 10.9% nationwide average. However, it is not the only reason for the spike in Florida insurance rates. It's becoming difficult for small state insurers to be competitive in Florida. In fact, six Florida insurance companies declared bankruptcy this year.
The rise in insurance costs is partly due to a rise in storms, which has led to an increase in reinsurance costs. Some reinsurers are pulling out of Florida, while others raise rates. The consumer pays 35% to 50% of these premiums.
Florida flood damage is a very common claim.
Flood damage coverage should be added to your homeowner's policy in case of flooding. Florida is well-known for its extreme weather. Make sure your policy covers any damage. Floods can cause serious damage to your house and can prove costly to repair.
Flood damage can result in thousands of dollars worth of damage, including structural and mold damage. Water damage is a common reality, regardless of whether the water was caused a hurricane or natural disaster. Florida homeowners insurance protects against flood damage. Flood damage can also result from mudflows and overflowing rivers. Just one inch of water within your home can cause flooding that can cost you thousands of bucks.
Florida offers liability coverage as part of its home insurance.
Liability coverage is an important component of homeowners insurance. It covers all medical expenses you might incur because of injury to another person. You also get coverage for other expenses that may arise from negligence. If you are sued for negligence, you must have adequate liability coverage to cover such expenses. It is a good idea to hire an agent who has experience in reviewing policies and ensuring you get the best rates.
Florida's home insurance policy 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. You have the option to buy higher limits. Also, let your agent know if you intend to rent out your detached property or make it available for business use. You may need specialized coverage for these situations.
Protective devices can be added to your home at a discounted price
Homeowners who add smart home technology to their homes may be eligible for discounts from insurance companies. Farmers, Liberty Mutual and USAA offer discounts on ADT security systems. However, the eligibility requirements may differ by state. These discounts may lower the overall cost for smart home upgrades and can be used to encourage you to make your home more secure.
Smart home technology is not the only way to protect your house. You can also install an alarm system and a smoke detector. These devices can help to protect your home from theft or fire. They can also lower your property insurance premiums.