Florida homeowners insurance rates continue to rise. The rates have risen by 33% since 2016. The rates vary by county. For a lower premium, you might consider getting discounts for certain protection devices. Flood damage is one the most common claims in Florida.
Rates have risen 33% from 2016
Florida is witnessing a surge in homeowners' insurance rates. The Insurance Information Institute has tracked Florida's property-insurance rates and found that they have increased by an average 33% annually since 2016. This increase is above the national average, which increased by 10.9%. The increase in Florida insurance rates is not caused solely by this. Small in-state insurers are having a hard time competing in the state. Sixteen Florida insurance firms declared bankruptcy in the last year.
The rise in insurance costs is partly due to a rise in storms, which has led to an increase in reinsurance costs. 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
Flood damage coverage is a requirement of homeowner's insurance. 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 significant damage to your property and can be expensive to repair.
Flood damage can lead to thousands of dollars in damages, as well as mold and structural damage. Water damage is a common reality, regardless of whether the water was caused a hurricane or natural disaster. Florida homeowners insurance covers flood damage. Flood damage may also occur from mudflows, overflowing rivers, and other factors. One inch of water in your home could cause damage worth thousands of dollars.
Florida home insurance includes liability coverage
Liability coverage can be an important part 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. Liability coverage must be sufficient to cover expenses arising from negligence if you are sued. You should hire an experienced agent to evaluate your policy and ensure you are receiving the best rates possible.
Florida home insurance includes liability coverage. The coverage amount will depend on the type, age and contents of your home. For detached garages, separate insurance will be needed. The coverage limits for detached garages are typically 2% to 10% less than the main residence. You have the option to buy higher limits. Your agent should be informed if your detached structure is rented out or used for business purposes. These situations may require specialized insurance.
You can get discounts on adding protective devices to the home
Numerous insurance companies offer discounts to homeowners who install certain protection devices in their homes, such as smart home technology. Farmers, Liberty Mutual, USAA, among others, offer discounts for ADT system installations. However, eligibility may vary from one state to the next. These discounts may lower the overall cost for smart home upgrades and can be used to encourage you to make your home more secure.
Apart from smart home technology, there are many ways to protect your property. Installing an alarm system or smoke detector is one example. These devices can help to protect your home from theft or fire. They can also help reduce your property-insurance premiums.