What is the Average Home Insurance Cost in 2022?
Factors That Determine How Much You Pay for Home Insurance
Florida is a great place to live, with its temperate climate, stunning ocean views, and rich wildlife. If you own a home or are thinking of buying a home in Florida, it’s important to understand that homeowners’ insurance is a bit different compared to other states.
Florida is in Mother Nature’s crosshairs, resulting in a widespread risk of property damage due to storms and hurricanes. As a result, Florida presents a challenging insurance market. This means the cost of homeowners insurance tends to be on the higher end. That said, you can still get enough coverage for an affordable premium if you understand your home insurance basics.
Because Florida homes face unique risks, it’s advisable to understand these threats. You should work with a local insurance agent to figure out your risk profile before starting the quoting and application process.
Factors That Impact Your Cost of Homeowners Insurance in Florida
Based on a policy with a $250,000 dwelling coverage limit, the cost of home insurance in Florida averages at $1,637 per year, higher than the national average of $1,393.
Even so, your specific rate will vary based on your zip code, the features of your home, and the home insurance company you choose to partner with. The threat of natural disasters also plays a significant role in determining your average home insurance cost.
So, why are home insurance costs so high in Florida?
When calculating your home insurance cost, your insurance agent will weigh several factors.
- The square footage of your house plays a big part in how much you’ll pay for homeowners insurance because it impacts the cost to rebuild. Other factors include local construction costs, the type of structure, and the age of your home, with older homes costing more to insure.
- Location is also a major consideration. With homeowners in Southeast Florida and the Florida Keys subject to higher premiums due to the increased risk of hurricanes and storm surges. Your home’s location may be the most significant factor affecting your property insurance rate.
- Claims history – if you’ve filed an insurance claim in the past on a homeowners insurance policy, you’re more likely to pay a higher premium.
Homeowners insurance also varies from person to person. Like bank lenders, many homeowners insurance companies will also take your credit score into account. Your marital status can also impact rates for both home and auto insurance. Married couples will typically qualify for lower rates as they’re assumed to be more responsible and less likely to take risks.
Keeping in mind that your risk profile determines how likely you are to file a claim, the bigger the risks you face, the higher your premiums.
What Are The Most Common Homeowner Insurance Claims in Florida?
Florida’s location between the Atlantic Ocean and the Gulf of Mexico makes the Sunshine State vulnerable to hurricanes. As such, homes in Florida are at an increased risk of sustaining internal and external damage.
Here are the most common causes of loss and property damage in Florida.
- Flood and water damage
Florida has a long coastline that increases the possibility of flooding, and the near sea level terrain does nothing to offset this risk. Heavy rains and storm surges also result in extensive flooding and water damage even in inland locations.
For this reason, flood damage is generally not covered under your standard homeowners insurance policy. You’ll have to buy a separate policy to cover flood damage, thereby increasing your homeowners insurance costs. It’s important to note that water damage from burst pipes, plumbing issues, and malfunctioning appliances such as dishwashers are generally covered.
- External wind damage
Hurricanes and tropical storms are accompanied by high and heavy winds, which can lead to road and external property damage. Wind-related damage can be incredibly costly in Florida. But fortunately, home insurance typically covers wind damage. A separate hurricane deductible may apply.
- Theft and Vandalism
You can install home security systems to dissuade would-be burglars, but the reality is theft and vandalism are a fact of life. As a general rule, it’s a good idea to keep inventory of your personal belongings and valuables to ensure your homeowners insurance policy is adequate to cover losses.
Components of Homeowners Insurance Policies
As mentioned, homeowners insurance doesn’t typically cover damage from flooding. So, what does homeowners insurance actually cover?
- Dwelling coverage, equal to the cost of rebuilding your home including attached structures like carports or garages.
- Other structures that aren’t attached to your house including fences, sheds, and detached garages.
- Personal property coverage that pays for your personal belongings if they are stolen or damaged.
- Liability coverage that covers medical expenses if you happen to injure someone through negligence. It also covers accidental damage to others’ property.
- Medical payments coverage for persons injured on your property, regardless of fault.
- Loss of use coverage should you need temporary housing while your home is being repaired after a recovered claim.
It’s important to note that not every insurance policy is the same. The components of an insurance policy differ as rates differ from one carrier to the next.
Choose The Best Home Insurance Company: Choose Coleman Insurance
Purchasing a home is one of the biggest investments you can make. Protect your investment with Coleman Insurance Agency. We’ll help you choose an appropriate home coverage type and we can even bundle your auto and home policies so you can save on the costs. Contact us today to schedule a free consultation.
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