If you are a resident of the Sunshine State, you know all too well the trade-off between the beautiful beaches and the risk of hurricanes, floods and other hazardous natural disasters that may damage or destroy your home. It should come as no surprise that Florida has one of the highest home insurance rates in the United States.
As a Florida homeowner, it is critically important that your home is adequately insured. But how can you get coverage that is both adequate and affordable?
There are a variety of important factors that will make a difference in what you’ll pay for home insurance in Florida including the physical location of the property, the age and condition of the home and the insurance provider you choose.
We’ve researched the top four homeowners insurance companies in Florida to help you find the right company and coverage for your needs.
The 4 best homeowners insurance companies in Florida
- Florida Peninsula Insurance Company
- State Farm
- St. Johns Insurance
- Universal Property & Casualty
| AM Best | JD Power | BBB | |
|---|---|---|---|
| State Farm | A++ | 3 out of 5 | A+ |
| Universal Property & Casualty | A | Not rated | A+ |
| St. Johns Insurance | Not rated | Not rated | A+ |
| Florida Peninsula Insurance Co | A | Not rated | A+ |
Best overall: State Farm
State Farm is a nationwide insurance company with a long-established history of top-notch customer service and affordable rates. With agents local to each area served, you are guaranteed to get service personalized to you and your location.
With average rates of $3,692 per year for a $200,000 home, a history of excellent customer service and a proven strong financial stability, State Farm is our top choice for home insurance coverage in Florida.
Best for lowest rates: Universal Property & Casualty
Despite being a subsidiary of the largest insurance provider in Florida (Universal Insurance Holdings), Universal Property & Casualty’s online presence isn’t as strong as some of the other companies that dominate the Florida home insurance market. However, it makes up for that by offering some of the lowest rates depending on what you need.
Universal prides itself on its superior customer service, and it has guaranteed assistance from a real person. During times of natural disaster or catastrophe, this promise may be harder to achieve, but Universal still allows policyholders to file claims 24/7 by rerouting them through an efficient automated system and having representatives reconnect with them.
Universal Property & Casualty may be a great choice for Floridians seeking the lowest rates.
Best for customer service: St. Johns Insurance
St. Johns is a privately held Florida company that specializes in homeowner’s insurance products. Unlike other insurance companies that offer homeowners insurance as one of several services, St. Johns exclusively provides property coverage.
Though you can expect a high level of expertise from a company with such a specialized focus, policyholders are unable to benefit from multi-policy discounts that larger, more diversified companies can offer. However, St. Johns boasts an A rating in financial stability from Demotech, Inc., excellent customer service and competitive pricing for its policies, making St. John a top provider of Florida home insurance. Check out the products and services St. Johns has to offer by visiting the website and using the “Find an Agent” feature to consult with an agent near you
Best locally-based provider: Florida Peninsula Insurance Company
If you want a Florida-based home insurance provider, Florida Peninsula Insurance Company has become one of the state’s top contenders in the homeowners market.
Established in 2005, the company ranks among Florida’s top 10 local carriers. Experience handling hurricane claims is one of its most relevant selling points for Sunshine State property owners. Policyholders can file claims not just by phone but also online — a nice touch for a local provider — and take advantage of a robust learning center on the company website. AM Best gives Florida Peninsula an A on its Financial Strength Rating (FSR).
One potential drawback is that the company serves “just about” every Florida city, which doesn’t guarantee that coverage is available in your area.
Average cost of homeowners insurance in Florida
The average cost of homeowners insurance in Florida is $1,951, more than the national average of $1,211. This is because Florida is prone to natural disasters. Whether it’s flooding, wind and hail or even sinkholes, Florida is a disaster-prone state. It would be easy for an insurance company to lose all of its revenue after a single event if it didn’t charge the right amount— hence the higher than average premiums compared to the rest of the states.
Keep in mind that homeowners insurance rates in Florida will be heavily impacted by geographical location. Coastal areas of Florida may see higher rates than inland areas due to the increased risk of hurricane damage. Here is a breakdown of average rates for a $200,000 home.
| Company | Annual | 6-month | Monthly | Weekly |
|---|---|---|---|---|
| State Farm | $3,692 | $1,846 | $308 | $77 |
| Universal Property & Casualty | $4,079 | $2,040 | $340 | $85 |
| Florida Peninsula Insurance Co. | $3,271 | $1,636 | $273 | $63 |
| St. Johns Insurance | Unable to get quote | Unable to get quote | Unable to get quote | Unable to get quote |
How can I save on my Florida home insurance?
There are a variety of ways you can save on your Florida home insurance. The first thing you should do is something you will want to do anyway, regardless of whether it saves you money on your homeowners insurance or not— and that is disaster proof your home.
Obviously nothing you could ever do would make your home 100 percent safe, but there are some things you can do that will better its odds.
First, install impact-resistant shingles on your roof. These shingles will weather both hail and falling limbs better than the standard roof shingle. It costs more than regular roofing, but it will last much longer in an area that sees a lot of severe weather.
Next, install both hurricane-proof windows and storm shutters. If you can’t afford to get new windows, look into storm shutters if you can. These can be purchased at most big-box home improvement stores and are relatively easy to install yourself. However, if that’s too far out of your comfort zone, a contractor shouldn’t charge that much to install them for you.
If your primary motivator is to lower the cost of your home insurance premium, call your insurance provider before you do any work. Depending on which provider you’re with, it’s possible the discount won’t be worth your time and effort.
Once the work is complete, call your provider and let them know about what you’ve done. They may require receipts and pictures before they’ll apply the discount.
The next option is the easiest and will save you time and effort, and it is bundling your auto and home insurance together with the same provider. Most insurance companies offer a discount for choosing them for both car and home insurance (many times as high as 20 percent). Doing this will save you money, but it will also save you time. When a disaster strikes, instead of potentially having to file a claim with two providers, you only have to do so with one.
Of course, there are other options as well. If you do choose to bundle your car and home insurance with the same provider, speak to an agent about what you can do to save on both.
Many insurance companies also offer discounts for the following:
- Autopay
- Pay in full
- Alarm systems
- Smoke detectors
- Claims free
- Loyalty
- Updating plumbing
- Updating electrical
- Choosing a higher deductible
- Not smoking
- Being married
Finally, another thing to consider is improving your credit score. Part of your homeowners premium is based on your credit score. This is because insurance companies have found a correlation between low credit scores and claim frequency. A higher credit score means you are statistically less likely to file a claim. Though a high credit score is beneficial for a variety of reasons, speak to an agent first before you undergo the process of improving your credit to lower your homeowners insurance.
Florida homeowners insurance considerations
Compare similar quotes: All quotes may not be equal, both in price and coverage. If one quote seems unusually low or unusually high, look at the coverage levels quoted to ensure they are the same.
- Lower costs by implementing newer building codes: Check with your insurer about precautions that can lower your premium, such as reinforced garage doors, windows with impact-resistant glass and a roof with hurricane straps.
- Understand the difference between replacement value and actual cash value: Things that are covered for replacement value usually give you more money because you’re compensated for today’s value. With an actual cash value policy, you’re reimbursed based on the item’s current condition and value.
- Check for limitations on personal property coverage: Some categories of personal items have coverage limits, such as guns, jewelry, electronics and antiques. Make sure your policy adequately covers your belongings.
Hurricane insurance in Florida
Most coastal insurance agencies will encourage specific coverage for hurricane-related damages. Make sure those things are included if you need them.
If you include hurricane coverage as part of your Florida homeowners insurance, you will have a standard deductible and a hurricane deductible that is usually higher than the standard. The hurricane deductible will only apply if you file a claim for hurricane-related damage.
Deductibles usually cost between 2 and 5 percent of the value of your property. In Florida, you also have the option to get a $500 deductible, but your annual premium will be much higher. You need to decide if you’d rather pay a higher rate on an ongoing basis, or take your chances and pay a higher deductible before reimbursements kick in when you file a claim.
Also make sure your policy covers “wind-driven rain.” Having this extra line item protects you from rain that causes damage because wind pushed it in an opening.
Flood insurance in Florida
We recommend asking your insurance agent about adding flood insurance to your policy. Flood insurance does not come in a standard policy, but adding flood insurance in states like Florida is a must.
Make sure you understand exactly what’s covered (and not covered) in your flood insurance policy. Things like leaky pipes typically aren’t covered. Instead, flood insurance protects you in the event of water overflow caused from things like hurricanes, landslides and earthquakes.
Methodology
To determine the best insurance companies in Florida, we took a look at ratings from organizations like J.D. Power, AM Best and BBB. We also considered customer reviews and average costs.
Frequently asked questions
Is homeowners insurance mandatory in Florida?
Home insurance in Florida is not mandatory, but some mortgage lenders may require it. While homeowners insurance is not mandatory, if you’re going to live in Florida where the risk of natural disaster is high, make sure you are covered to avoid hardships.
What is the difference between replacement cost and actual cash value?
Under a replacement cost homeowners policy, your home is covered for the amount it would cost to replace your home and home contents at current costs. Under an actual cash value policy, your home is covered for replacement cost minus depreciation.
Will my policy cover damage from hurricanes or other natural disasters?
Most standard policies do not include coverage from hurricanes or other natural disasters. Speak with your insurance agent about adding coverage to make sure you have protection from the disasters most likely to happen in your area.
