10 Areas To Review
Florida homeowners insurance premiums can vary dramatically from one house to another, even when the properties seem similar. Your home’s value matters, but insurance companies consider much more when calculating what you pay.
Understanding the factors that affect your premium can also reveal opportunities to reduce costs. Here are 10 things that may make your Florida homeowners insurance more expensive.
1) Where Your Home is Located
Location plays a significant role in homeowners insurance rates. Insurers consider the city, county, ZIP code, wind exposure, local claims experience, and available fire protection.
A coastal home may face greater hurricane and wind exposure, but inland Florida homes aren’t risk-free. They must consider:
● Severe thunderstorms
● Hurricanes
● Lightning
There are a number of similar losses that can affect premiums throughout the state.
2) An Older Roof
Your roof represents one of your home’s first defenses against Florida weather. Insurers may consider its age, condition, material, and remaining useful life when evaluating a property.
An aging roof can increase premiums or affect available coverage options. Florida law provides certain protections based on roof age and inspection results, but insurers can still consider the roof’s condition during underwriting.
3) An Older Home
Older homes may cost more to insure because their systems and construction can create additional risk.
Insurance companies may look closely at the home’s electrical, plumbing, HVAC, and roofing systems. An insurer may also request a four-point inspection when evaluating an older property.
4) Higher Replacement Costs
Homeowners insurance focuses heavily on what it would cost to rebuild your home after a covered loss, not simply what someone would pay to purchase it.
Here are some examples:
● Renovations
● Additions
● Upgraded kitchens
● Custom finishes
● Increased construction costs
Any of these can raise the amount of insurance you need. More dwelling coverage can mean a higher premium, but carrying too little can create a much bigger financial problem after a major loss.
5) Previous Insurance Claims
Your claims history can influence your insurance options and premium. Multiple prior claims may indicate a greater likelihood of future losses from an insurer’s perspective.
That doesn’t mean homeowners should avoid legitimate claims. However, understanding your deductible and discussing a loss with your agent can help you make an informed decision before filing.
6) Gaps in Insurance Coverage
Allowing a homeowners policy to lapse can create another problem when shopping for coverage. Some Florida insurers consider whether you’ve maintained continuous prior homeowners insurance. A gap in coverage may reduce your options or contribute to a higher premium.
7) Missing Wind Mitigation Features
Florida homeowners can potentially lower the windstorm portion of their premium by documenting qualifying hurricane-resistant construction features. These may include stronger roof-to-wall connections, qualifying roof coverings, secondary water resistance, and approved opening protection for windows and doors.
A wind mitigation inspection can document eligible features and determine which credits may apply.
8) Choosing Lower Deductibles
A lower deductible means the insurance company assumes more of the cost when you have a covered claim. That convenience can result in a higher premium. Increasing a deductible may lower your insurance costs, but make sure you could comfortably pay that amount after a loss. Florida homeowners should pay particular attention to both their standard deductible and hurricane deductible.
9) Missing Available Home Discounts
Home improvements don’t always increase insurance costs. Some can help reduce them. Depending on the insurance company, discounts may be available for monitored security systems, fire alarms, certain roof improvements, updated electrical or plumbing systems, and other safety features.
If you’ve upgraded your home since your last policy review, make sure your insurance agent knows about it.
10) Policy Hasn't Been Reviewed Recently
Sometimes the problem isn’t one particular feature of your home. Your existing policy may simply no longer reflect your current situation. Your roof may have been replaced. You may have completed wind mitigation improvements, installed an alarm system, or renovated the property. Insurance companies and available policy options can change, too.
An annual review gives you an opportunity to compare coverage, verify discounts, update property information, and determine whether your current insurer still makes sense.
Don't Look at Price Alone
Finding affordable Florida homeowners insurance matters, but the cheapest policy isn’t automatically the best policy. Deductibles, exclusions, coverage limits, and how the insurer values your home can make two similar-looking quotes very different.
Beucher Insurance Agency can review your current coverage and help identify factors that may be affecting your premium. Call 352-357-1994 and say “agent” to speak directly with a local insurance professional about your Florida homeowners insurance.