Florida homeowners insurance rates have been on the rise. Since 2016, rates have increased by 33%. However, rates can differ from one county to another. To avoid paying a higher premium, consider taking advantage of discounts for adding certain protective devices to your home. Flood damage in Florida is one of the most frequent claims.
Since 2016, rates have risen by 33%
Florida is witnessing a surge in homeowners' insurance rates. According to the Insurance Information Institute, Florida's property insurance rates have increased an average 33% per year since 2016. This is a higher rate than the 10.9% increase nationally. It is not the only reason Florida insurance rates have risen. It is becoming increasingly difficult for small in-state insurance companies to compete in the state. In fact, six Florida insurance businesses declared bankruptcy this year.
Partly due to an increase of storms, insurance costs have risen. This has caused an increase in the reinsurance costs. Some reinsurers are pulling out of Florida, while others raise rates. The consumer pays 35% to 50% of these premiums.
Florida is home to flood damage.
Flood damage coverage is a requirement of homeowner's insurance. Florida is known for its extreme weather. It's therefore important to make sure that your policy covers any damages. Floods can cause severe damage to your home and can cost you a lot to fix.
Flood damage can lead to thousands of dollars in damages, as well as 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. Florida homeowners insurance covers flooding damage. Flood damage can also be caused by mudflows or overflowing rivers. A single inch of water can cause flood damage that could cost thousands of dollars.
Florida's home insurance policy includes liability coverage.
Homeowners insurance should include liability coverage. It covers any medical expenses you incur after an injury to someone else. It also covers other possible expenses that could arise due to negligence. In the event that you are sued due to negligence, you should have sufficient liability coverage to cover these expenses. An experienced agent should be hired to review your policy and ensure that you receive the best rates.
Florida home insurance also includes liability coverage. The type of house and contents will determine the coverage amount. 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 can buy higher limits if necessary. You should also inform your insurance agent if you rent out your detached structure or use it for business purposes. These cases may require you to have specialized coverage.
You can get discounts on adding protective devices to the home
Homeowners who add smart home technology to their homes may be eligible for discounts from insurance companies. Farmers, Liberty Mutual, USAA and USAA all offer discounts for ADT systems. However, each state's qualifications might vary. These discounts can help reduce the total cost of smart-home upgrades and offer an incentive to create safer homes.
There are other ways to protect your home than smart home technology. You could install an alarm or smoke detector. These devices can protect your home from fire and theft. These devices can reduce your property insurance premiums.