Friday, August 19, 2022 by rob bhatt
Quotewizard’s analysis of Florida home insurance rates reveals that Tower Hill offers the lowest average rates, $1562 a year or $130 a month.
As homeowners insurance rates increase and some companies reduce their offers, it’s important to find a company that can offer reliable protection at a reasonable price. Here’s what you need to know to find the best and cheapest home insurance in Florida.
what are the cheapest homeowners insurance companies in florida?
tower hill offers the cheapest median rate for home insurance in florida at $130 a month, followed by state farm at $186 a month. both companies exceeded the state average.
what is the cost of home insurance in florida?
Our research shows that the average cost of home insurance for a typical Florida home is $2,414 a year, or $201 a month, the 11th highest rate among all states and the District of Columbia.
Insurance companies evaluate various rate factors about you and your home to determine your premium. the most common include:
- the replacement cost value of your home
- the age and construction features of your home
- its location
- its history insurance, including recent claims
Because each company evaluates these and other factors differently, you may qualify for a lower rate with a company that charges higher rates to others, or vice versa. You may also qualify for more or better discounts with one company than others. Here are some of the top reasons to get quotes from multiple companies when shopping.
florida home insurance rates by deductible
Deductibles also affect your home insurance premium and it’s something you can control. If you want to lower your annual premium, increase your deductible, which is the amount of money you must pay for an insured loss.
On average, we find that raising your homeowners insurance deductible from $1,000 to $2,000 can save you more than $300 a year.
florida homeowners insurance rates by county
As an example of how your location can affect your rates, the average cost of homeowners insurance in miami-dade county is $451 a month, compared to $127 a month in pinellas county. In general, households in coastal counties with higher risks from tropical storms and hurricanes pay more for home insurance than those in counties that don’t experience the brunt of extreme weather.
the best home insurance providers in florida
Based on rates, customer service metrics, and financial strength, Tower Hill and State Farm are the best insurance companies in Florida. Universal and Progressive are also competitive, but Progressive recently stopped insuring homes with roofs that are more than 15 years old.
best regional operator: tower hill
tower hill was established in florida in 1972 and has since expanded to 16 more states. the company has an exceptional rating from demotech, which rates the financial strength of regional, specialized and independent insurance companies. Tower Hill’s favorable complaint rate from the National Association of Insurance Commissioners (NAIC) reflects good customer service.
best national carrier: state farm
state farm stands out for its combination of competitive rates, favorable customer service scores, and financial strength. your classification in j.d. Power’s overall customer satisfaction rating is 835, which is higher than the industry average of 825, based on a 1,000-point scale. State Farm’s Homeowners Insurance Subsidiary in Florida is rated A-, Excellent Financial Strength by AM Best.
best for grouping: progressive, state farm and tower hill
state farm and progressive offer generous discounts to customers who combine auto and home insurance, or any other policy. although tower hill does not offer auto insurance, it does offer a multiple policy discount to insurance customers of safeco automobile.
better customer service
owners choice, progressive and tower hill had the best scores in the complaint index in 2021, according to the naic.
Florida’s home insurance market is dominated by regional companies that don’t always receive national rankings or ratings from agencies like J.D. power and I am better. however, all insurance companies appear in the naic complaint index, which compares insurance companies by substantiated complaints, which are complaints that lead to a finding of fault.
The national complaint rate is 1.0. a company with a complaint rate of 2.0 has twice as many confirmed complaints as expected for a company of its size, while a complaint rate of 0.5 reflects half of what is expected. a lower complaint rate reflects better performance.
based on 2021 data, tower hill, progressive and home owners choice had a complaint rate of 0.0, while state farm’s complaint rate was 0.02.
improved financial stability ratings
Of the seven companies in our analysis, progressive has the highest financial strength rating, a+, from am best. am best gives state farm florida an a- rating, but state farm’s parent company has an a++ rating. Homeowners Choice, Heritage Insurance, Tower Hill and Universal all have an Exceptional rating from Demotech, which gives Fednat a Substantial S rating.
A company with a strong financial strength rating is typically in a better financial position to meet its long-term customer obligations than one with a low financial strength rating.
the cheapest home insurance in florida city
Among Florida’s largest cities, rates range from $118/month in Tallahassee to $412/month in Miami.
cheapest home insurance rates in jacksonville
in jacksonville, tower hill’s home insurance rate is $104 per month, which is significantly lower than universal’s available rate of $138 per month.
the cheapest home insurance rates in miami
state farm offers the cheapest homeowners insurance rates in miami at $274/month, slightly lower than tower hill’s rates of $276/month and considerably lower than universal’s rates of $329/month.
Miami’s average homeowners insurance rate is $412 a month, which is more than double the statewide average. In general, susceptibility to extreme weather events makes homeowners insurance more expensive in Miami and neighboring South Florida communities than in other parts of the state.
cheapest home insurance rates in tampa
heritage offers the cheapest rate for homeowners insurance in tampa at $131 a month, which is slightly better than tower hill’s rate at $140 a month. the next lowest rates are available at universal, $160/mo., and state farm, $169/mo. all four companies offer rates below the city average of $170 a month.
cheapest home insurance rates in orlando
in orlando, tower hill offers the lowest rate for homeowners insurance, $130 per month, which is noticeably lower than tower hill’s next best rate, $148 per month.
cheapest home insurance rates in st. petersburg
heritage offers the cheapest home insurance rate in st. petersburg, $85 a month, followed by tower hill, $95 a month.
the average cost of homeowners insurance in st. petersburg costs $122 per month. This is lower than the average rate in many other Florida cities, including nearby Tampa, where the average rate is $170 a month.
cheapest home insurance rates in Tallahassee
tower hill also offers the lowest rates on homeowners insurance in Tallahassee, $69/month, which is considerably lower than the next best rates available at Heritage, $108/month, and Universal, $113/month.
florida homeowners insurance rate factors
It’s no secret that Florida homeowners face environmental threats. There have been 19 natural disasters in Florida since 2009, according to FEMA. of these disasters, seven were hurricanes or severe storms, five were fires, and two were tropical storms.
Homeowners insurance typically covers damage from hurricanes and fires, but never from floods. however, some companies exclude windstorm coverage for high-risk areas, so you should always check with your insurance company to make sure you’re fully protected.
wind storms: hurricanes, tornadoes, high winds and cyclones
the state of florida does not require homeowners to have windstorm protection, but some mortgage lenders do. what the state requires, however, is that insurers give their customers the option of windstorm coverage, except in a few particularly high-risk areas.
We recommend adding windstorm and hail coverage to your homeowners policy, with tornado, hurricane, cyclone and high wind protection included. it is possibly the most important protection for Floridian homeowners due to the state’s high risk in these areas. If you’re not sure if your policy covers windstorms, check with your insurance agent or company.
Most home insurance policies have a hurricane deductible. Florida requires businesses to offer hurricane deductibles of $500, 2%, 5%, and 10%. Percentage-based deductibles refer to your homeowners coverage, or how much your home is insured. so if your home is insured for $200,000 and has a 2% hurricane deductible, your insurance kicks in after you pay a $4,000 deductible.
flood insurance in florida
Flooding is not covered by homeowners insurance. To protect your home and belongings from flood damage, you must purchase a separate flood insurance policy. There are two main options: flood insurance through the NFIP (backed by the US government) or flood insurance through a private flood insurance company. The average cost of flood insurance through the NFIP is $628 a year.
It’s hard to tell if a private flood insurance policy or an nfip policy is cheaper. There are times when NFIP policyholders may overpay compared to a private company, but the reverse can also be true. therefore, the best thing you can do is collect quotes from multiple companies to ensure you receive the right coverage at the right price.
many parts of florida are also susceptible to sinkholes. While all Florida homeowners insurance policies include catastrophic ground collapse coverage, this coverage only kicks in if a sinkhole renders your home uninhabitable and you meet other criteria. Separate, separate sinkhole insurance is available to cover expenses resulting from non-catastrophic sinkhole damage.
frequently asked questions about homeowners insurance in florida
why are homeowners insurance rates going up in florida?
Unprecedented natural disasters and rising cost of building materials are blamed for driving up homeowners insurance costs across the country. In Florida, the insurance industry blames false and inflated claims and excessive lawsuits for contributing to price increases.
how much does homeowners insurance cost in florida?
The average cost of a standard Florida homeowners policy is $2,414 a year or $201 a month. Most insurance companies offer discounts that can lower your rates a little or a lot, depending on how much you qualify for.
who has the cheapest home insurance in florida?
tower hill offers the lowest average statewide rate on homeowners insurance in florida, followed by state farm. however, rates vary by location and these companies do not necessarily offer the lowest rates in every city or county in Florida.
We collect non-binding quotes from every zip code in Florida for a standard ho-3 homeowners insurance policy. We use the following coverages:
- Dwelling coverage: $275,000
- Other structures coverage: $27,500
- Personal property coverage: $137,500
- Loss of use coverage: $55,000
- Liability coverage: $100,000
- Medical payments: $5,000
- Deductible*: $1,000
*Your deductible is the amount you pay out of pocket for a claim before insurance funds kick in. In Florida, insurance companies often offer a separate, usually higher, deductible for hurricane damage.
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