Florida homeowners insurance rates continue to rise. Since 2016, rates have increased by 33%. However, rates can differ from one county to another. You can save money by adding protective devices to your home. Flood damage is a common claim in Florida.
Rates have increased by 33% since 2016
Florida is seeing an increase 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 is higher than the 10.9% average national increase. 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 withdrawing from Florida while others raise rates. The consumer pays 35% to 50% of these premiums.
Florida is home to flood damage.
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 are a serious threat to your home that can lead to major damage and may cost you dearly to repair.
Flood damage can cause damage to homes and businesses that could cost thousands of dollars. Homeowners are faced with the unfortunate reality of water damage, no matter if it was due to a hurricane. Florida homeowners insurance covers flooding damage. Flood damage may also occur from mudflows, overflowing rivers, and other factors. Flood damage can be as little as one inch in your home.
Florida homeowners insurance covers liability.
Homeowners insurance should include liability coverage. This covers any medical expenses you may incur as a result of an injury sustained to another person. You also get coverage for other expenses that may arise from negligence. To cover the costs of negligence lawsuits, you will need adequate liability coverage. It is a good idea to hire an agent who has experience in reviewing policies and ensuring you get the best rates.
Florida homeowners insurance covers liability. The coverage amount depends on the type of home and the type of contents. You will need separate insurance if you have a detached garage. The limits for detached garages typically equal 2% to 10% of the coverage for the main home. Higher limits can be purchased if desired. Also, let your agent know if you intend to rent out your detached property or make it available for business use. You might need special coverage in these cases.
Discounts available for adding protective devices to your home
Insurance companies often offer discounts for homeowners who have smart home technology installed. Farmers, Liberty Mutual, USAA, and USAA offer discounts to homeowners who add ADT security system. The qualifications for each state may differ. These discounts can reduce the cost of smart home upgrades, and they may be a motivator to make your home safer.
Smart home technology is not the only way to protect your house. You can also install an alarm system and a smoke detector. These devices can help you protect your home against fire and theft. They can also lower your property insurance premiums.