Florida is a beautiful state to live in, but it’s also one of the most expensive states for property insurance. Given the recent active hurricane seasons over the past few years, insurance premiums have soared to new levels. Furthermore, we have also seen various insurance providers completely pull out of The Sunshine State altogether. For perspective, the average homeowner in Florida pays over $6,000 per year for property insurance, which is nearly four times the national average. If you are a Florida homeowner, we discuss a few strategies to lower your property insurance premiums below.
Tips to lower your property insurance
- Get a wind mitigation inspection. A wind mitigation inspection is an inspection of your home to assess how well it would withstand high winds. If your home has features that make it more wind resistant, such as impact windows and doors, you may be eligible for a discount on your property insurance.
- Raise your deductible. Your deductible is the amount of money you have to pay out of pocket before your insurance company starts paying for a claim. The higher your deductible, the lower your premium will be. However, it’s important to choose a deductible that you can afford to pay if you need to file a claim.
- Ask about discounts. Many insurance companies offer discounts for things like bundling your home and auto insurance, having a security system, and being a member of certain organizations. Be sure to ask your insurance agent about all the discounts that you may be eligible for.
- Fortify your roof. Your roof is one of the most important parts of your home, and it’s also one of the most expensive to replace. If your roof is old or damaged, it may be worth replacing it with a more wind-resistant roof. This can help to lower your property insurance premiums and protect your home in the event of a storm.
- Be strategic if you move. If you’re planning to buy a home in Florida, be sure to consider the location of the home carefully. Homes in areas that are more prone to hurricanes and other natural disasters will typically have higher property insurance premiums.
- Shop around for insurance. Needless to say, it is highly recommended that you shop around to obtain various quotes for your property insurance. In doing so, you may be surprised at some of the ranges beings charged for these premiums.
- Consider working with an insurance broker. An insurance broker can help you to compare quotes from multiple insurance companies and find the best policy for your needs.
- Maintain a good credit score. Insurance companies use your credit score to assess your risk as a policyholder. A good credit score can help you to qualify for lower premiums.
- Know your flood zones. Throughout the State of Florida and other coastal locations, the flood zones may vary substantially. Depending on your flood zone category, your property insurance can vary substantially.
Summary
Unfortunately, given the current state of insurance costs, many Florida homeowners are being forced to make some difficult decisions. If you are currently looking to buy a home in The Sunshine State, it is important to inquire about flood zones and overall insurance rates for any particular areas that you are interested in. While many home buyers estimate what their monthly mortgage and property tax costs will be for a particular home, many forget to accurately estimate their insurance costs.
Are you looking to buy or sell a property in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet.
