Florida homeowners insurance rates are increasing. The rates have risen by 33% since 2016. 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 risen by 33%
The state of Florida is seeing a spike in homeowners insurance rates. The Insurance Information Institute tracks the rates of property insurance and found that Florida rates have increased on average by 33% since 2016. This is more than the 10.9% national average. But it's not the only reason Florida insurance rates are rising. It is becoming increasingly difficult for small in-state insurance companies to compete in the state. In fact, six Florida insurance companies 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 considering withdrawing from Florida, while other are increasing their rates. Those costs are passed on to consumers, who pay between 35% and 50% of the premium.
Florida is home to flood damage.
In case of flooding, you should seek flood damage coverage on your homeowner's insurance policy. Florida is notorious for its severe weather, so it's important to ensure that your policy covers any damage you may incur. Floods are a serious threat to your home that can lead to major damage and may cost you dearly to repair.
Flood damage can cause thousands of dollars of damages, including mold and structural damage. Water damage can happen to homeowners regardless of whether it was caused by a hurricane, a natural disaster or other factors. Luckily, Florida homeowners insurance covers flood damage. Flood damage may also occur from mudflows, overflowing rivers, and other factors. Flood damage can be as little as one inch in your home.
Florida homeowners insurance covers liability.
Liability coverage can be an important part homeowners insurance. This covers any medical expenses you may incur as a result of an injury sustained to another person. You also get coverage for other expenses that may arise from negligence. To cover the costs of negligence lawsuits, you will need adequate liability coverage. 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. You will need separate insurance if you have a detached garage. These structures typically have limits of 2% or 10% less than the main dwelling. You have the option to buy higher limits. Your agent should be informed if your detached structure is rented out or used for business purposes. These cases may require you to have specialized coverage.
You can get discounts on adding protective devices to the home
Insurance companies often offer discounts for homeowners who have smart home technology installed. For example, Farmers, Liberty Mutual, and USAA offer discounts for ADT security systems, but the qualifications may vary 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.
In addition to smart home technology, there are many other ways to protect your home. For example, you can install an alarm system or a smoke detector. These devices can help you protect your home against fire and theft. They can also lower your property insurance premiums.