One of the many costs of owning a home is homeowners insurance. Not to be confused with mortgage insurance, homeowners insurance is what can protect you if your home is damaged by a covered event. In Florida, homeowners insurance tends to be more expensive than it is elsewhere in the country. But it can also be more critical.
Why Homeowners Insurance in FL is Important
Florida is subject to some of the most severe weather in the country. Hurricanes and floods are regular events. But it isn’t always something dramatic and sudden that damages FL homes. A lot of the damage takes on a more creeping, gradual form. The high humidity in this state makes FL homes ripe for mold. Once mold sets in, it can cause structural damage and be hard to eradicate.
If your home is insured, you can make a claim if something does go wrong. This may end up saving you thousands of dollars.
Plus, Florida lenders often require you to have homeowners insurance, even though the state itself does not set any requirements. So, getting home insurance can be an essential step to obtaining a loan.
What is Covered?
Here are the types of coverage that are typically included in Florida homeowners insurance policies. Keep in mind that coverages can vary depending on the carrier and the policy.
- Structure (your home itself)
- Other structures on your property
- Personal property
- Loss of use
- Personal liability
- Medical liability (this is for third parties who get injured on your property, not for you or your family; it is related to personal liability coverage)
Common Exclusions
FL homeowners insurance policies usually have these exclusions:
- Flood damage
- Windstorm damage
- Mold and water damage
- Damage from sinkholes
- Damage from earthquakes, tremors, etc.
You can see the issue here. A lot of these exclusions refer to the exact types of damage you have reasons to be concerned about in Florida.
You can still get coverage for hurricanes, floods, mold, and so on. But you have to purchase endorsements or add-ons in most cases.
Whether these coverages are included in your policy or you have to tack them on, they will drive up your costs (see below).
What Does FL Homeowners Insurance Cost?
The average cost for homeowners insurance per year in Florida is around $4,400 per year. That assumes a $1,000 deductible, $100,000 coverage maximum for liability, and $300,000 coverage maximum for the dwelling. The average for the US as a whole is closer to $2,600.
You can find rates more in line with the national average in some areas, especially Tallahassee. Parts of FL that are more susceptible to extreme weather events tend to be pricier. Insurance rates are especially high in Tampa and Pensacola.
Save on Your Florida Mortgage with PLC
You may not be able to keep your homeowners insurance rates low in Florida. But that just makes it even more crucial to look for other ways to save on your costs of homeownership.
One way you can do that is by making sure you are getting a competitive mortgage rate. Premier Lending Corp. is based in Cooper City, and can help you find a suitable mortgage to buy a home anywhere in Florida. We work with a network of lenders, which is how we are able to bring you competitive rates and a variety of mortgage products.
To get started, please give us a call at 954-840-8811 to schedule your consultation. Along with helping you buy a home, we can also help you refinance.
