Florida homeowners insurance rates continue to rise. Rates have increased 33% since 2016. The rates are different for each county. For a lower premium, you might consider getting discounts for certain protection devices. In Florida, flood damage is one of the most common claims.
Rates have risen by 33% in 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. The increase in Florida insurance rates is not caused solely by this. It's becoming difficult for small state insurers to be competitive in Florida. In fact, six Florida insurance businesses 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 deciding to withdraw from Florida, while others are raising rates. Those costs are passed on to consumers, who pay between 35% and 50% of the premium.
Flood damage is a common claim in Florida
In case of flooding, you should seek flood damage coverage on your homeowner's insurance policy. Florida is well-known as a place where severe weather can occur. Therefore, it's crucial to ensure your policy covers any potential damage. Floods can cause serious damage to your house and can prove costly to repair.
Flood damage can cause damage to homes and businesses that could cost thousands of dollars. Whether the water was caused by a hurricane or a natural disaster, water damage is an unfortunate reality for homeowners. Florida homeowners insurance provides flood coverage. Flood damage can also happen from mudflows. One inch of water in your home could cause damage worth thousands of dollars.
Liability coverage is a part of home insurance in Florida
Liability coverage is an important part of homeowners insurance. It covers any medical expenses you incur after an injury to someone else. Other expenses may also be covered by the policy, including those resulting from negligence. To cover the costs of negligence lawsuits, you will need adequate liability coverage. To ensure the highest rates, you should consider hiring an agent with experience to assess your policy.
Liability coverage is part of home insurance in Florida. The type of house and contents will determine the coverage amount. You will need separate insurance if you have a detached garage. Typically, the limits for these structures are 2% or 10% of the amount of coverage on the main dwelling. If you want to purchase greater limits, you can. Your agent should be informed if your detached structure is rented out or used for business purposes. These types of situations might require special coverage.
Get Discounts on Protective Devices for Your Home
Many insurance companies offer discounts to homeowners who add certain protective devices to their homes, including smart home technology. For example, Farmers, Liberty Mutual, and USAA offer discounts for ADT security systems, but the qualifications may vary by state. These discounts can reduce the cost of smart home upgrades, and they may be a motivator to make your home safer.
Smart home technology is not the only way to protect your house. You can, for example, install an alarm system. These devices can help you protect your home against fire and theft. They can also help reduce your property-insurance premiums.