Why Are Prices Different for Florida Home Insurance Policies?

In Florida, homeowners’ insurance is more expensive than in other parts of the country. But fortunately, there are many insurance companies, and some of them still offer good deals, despite the recent price increase. Today, we’ll have a closer look at why prices are different for Florida home insurance and how you can get the best offer.

Why Are Prices Different for Florida Home Insurance Policies?

In the last few years, home insurance has risen in Florida. A number of factors have contributed to the problem. Firstly, several storms have caused more damage than usual, so insurance companies have been under a lot of pressure due to the high volume of claims. Another major issue is fraud, which is committed by people pretending to be contractors.

Even when the scams are uncovered and the perpetrators taken to court, the insurance companies face hefty legal fees and typically still lose money. Finally, supply chain issues have made repairs more difficult and costlier, so insurance companies’ expenses have risen further.

Despite this, not every homeowner pays the same per month, and there are things that will influence how much you​ have to pay:​​​

Claims History 

If you’ve ever made a claim before, it’s likely that you’ll pay more in the future. This is because insurers believe that you are riskier than a person who has never needed to rely on their insurance before. To prevent an increase in price, many homeowners pay for small repairs on their own, even if the issue is covered by their insurance policy.

The Owner’s Individual Situation 

Your individual situation impacts the quotes you can get. Someone with a great credit score is likely to get better deals than someone who has made a mistake, such as failing to pay their bills. Always double-check your credit rating before applying for insurance to see whether there are any mistakes that could affect your quote.

The Home 

The location and condition of your property are important. For instance, if you live in an area that is prone to flooding or your property is very old, you might struggle to get a low quote. While some factors are outside your control, you can make sure that your home is optimally protected. Setting up smoke detectors, burglar alarms, and deadbolt locks can reduce your quote by up to 5%, and a more advanced security system could cut 20% off your bill.

Your Loyalty

Insurers try to capture as much of the market as possible, so they often offer better deals for people who get several types of insurance with them. Consider selecting the same company for your home insurance and your auto insurance. In some cases, you can also get a break for being a long-term customer. It’s always worth asking your agent whether you’re eligible for any discounts.

In Florida, insurance premiums are higher than in other areas of the country due to the pressure placed on companies. But living here doesn’t have to mean paying thousands every year. A good insurance agent can help you keep your bills reasonable. Call us at Absolute Choice Insurance and ask us for quotes.


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