Homeowners insurance in Florida: what you need to know

Florida homeowners face some of the highest insurance premiums in the country, driven by repeated hurricanes, rising rebuild costs, and a shrinking pool of insurance companies willing to write policies in the state. The result is a market where coverage is not only expensive but can also be harder to secure.

Even with these challenges, going without insurance isn’t an option. Your home is exposed to hurricanes, flooding, wind damage, and costly repairs — risks that can lead to severe financial loss without the right protection in place. This guide explains why coverage is so essential in Florida, the types of policies you may need, and practical ways to lower your costs in a difficult market.

Why home insurance is essential in Florida

Hurricanes and tropical storms are an annual occurrence in Florida. With them come high winds and floodwaters. However, those are far from the only threats to your home.

“We get more mold claims than anything else,” says Saul Cruz, owner of 1-800-Packouts of South Miami, a company that assists homeowners with cleaning, restoration and storage while they are going through the claims process.

Florida’s hot, humid climate is ideal for mold growth. Some areas – such as Tampa and Orlando, according to Cruz – can also be susceptible to sinkholes.

Plus, there are the unique attributes of Florida living, with many residents having pools, screened lanais or waterfront homes. All those things place residents at higher risk of property damage or injury to a guest. And if something does happen to your home, code requirements and labor shortages can mean repairs are costly.

Together, these are all reasons why home insurance is essential for all Florida homes.

How much homeowners insurance in Florida costs

Florida homeowners pay, on average, $4,405 annually for home insurance, according to our data.That’s based on having coverage limits of $300,000 for a dwelling and $100,000 for liability with a $1,000 deductible.

That’s significantly higher than the nationwide average of $2,601, but Florida’s average may be skewed by some coastal regions where premiums are significantly higher.

Here’s a look at average annual home insurance prices in select Florida cities.

Tavernier, where premiums are highest in the state, is located in the Florida Keys at the southern tip of the state. Meanwhile, cities in Florida’s panhandle and interior will be less expensive to insure, likely because they are less prone to damage from hurricanes.

What florida homeowners insurance typically covers

A standard Florida homeowners policy generally includes seven types of coverage, according to the state’s Department of Financial Services. These include both property and liability coverage.

• Structure: Insurance policies include dwelling coverage that will pay for damage caused to your home by wind, fire, theft, vandalism or other covered perils.
• Other structures: Sheds, fences and other accessory buildings may also be covered, up to certain limits, by a homeowners policy.
• Personal property: If your home is damaged by a covered peril, this portion of your insurance will replace destroyed possessions inside. Some items, such as valuable jewelry or fine art, may  need their own endorsements for coverage.
• Loss of use: Also known as additional living expense or ALE, this coverage will pay for you to live elsewhere while your home is being repaired and restored.
• Personal liability: If someone should be injured on your property and file a lawsuit against you, the personal liability portion of your policy will cover the claim so long as the injury was an accident and not caused by an intentional action by you.
• Medical payments to others: This final category of coverage will pay for the medical expenses of someone who is accidentally injured at your house, regardless of who is at fault.

Together, these protections form the backbone of your financial safety net. In Florida, where hurricanes, strong winds and costly repairs are common, each part of the policy serves a specific purpose.

Dwelling and other-structure coverage help you rebuild after storm damage, and personal property coverage picks up where that ends by replacing belongings ruined by wind, rain or fire. If repairs force you out of your home, loss of use coverage helps pay for temporary housing. Liability and medical payments coverage round out your protection by covering injury-related claims and medical bills.

Having all seven types of coverage in place helps Florida homeowners avoid major out-of-pocket expenses and makes it easier to recover when severe weather or unexpected accidents occur.

Unique florida risks and coverage needs

If you are buying homeowners insurance in Florida, you need to understand the risks that are unique to the state since they can affect your coverage.

Hurricanes and tropical storms

Hurricanes pose a special threat to Florida, and homeowner policies have hurricane deductibles that are separate from other deductibles. State law stipulates that insurers can apply these deductibles for damage that occurs during a time period that begins when a hurricane warning is declared for any part of Florida and ends 72 hours after the last hurricane watch or warning for that storm is terminated.

Hurricane deductibles are typically 2%, 5% or 10% of the dwelling coverage included in the policy. Homeowners only need to pay one hurricane deductible per year.  

Flooding

Standard homeowners insurance policies don’t include coverage for flooding, including water damage from a hurricane storm surge.

Instead, you will need to buy separate flood insurance. This coverage is available from the National Flood Insurance Program as well as private insurers. Typically, there is a 30-day waiting period before coverage begins.

Pools and outdoor features

Outdoor living is a big part of many Florida homes, but these features can change your insurance needs. If you have a lanai, screened enclosure, deck or other outdoor structures, check that your “other structures” coverage is high enough to rebuild them after storm or wind damage. 

Homeowners with pools and trampolines, which could increase the risk of injury to guests, may want additional personal liability coverage.

Sinkholes

Florida is one of the states most prone to sinkholes, yet not every homeowners policy includes protection for this type of damage. Basic policies may only cover the most extreme cases under “catastrophic ground cover collapse,” which applies when the home becomes uninhabitable or structurally unsafe.

If you live in a region where sinkholes are more common, you may want to add optional sinkhole coverage to ensure damage is covered even when it doesn’t meet the catastrophic threshold.

Older homes

When it comes to finding affordable insurance, “It’s older homes that have a harder time,” according to Cruz. These properties may get charged more for insurance if they have not been updated to the latest codes and materials.

Roofs, in particular, can be problematic, and insurers can mandate that a roof that is older than 15 years be inspected and replaced prior to issuing or renewing a policy. Homeowners policies in Florida may also come with a separate roof deductible.

What isn’t covered in standard Florida homeowners insurance policies

As noted above, not all hazards are covered by standard Florida policies. The most common exclusions are:

• Flood damage. A separate policy is needed to pay for damage from floodwaters, including storm surges.
• Earth movement and sinkholes. Some policies may automatically include coverage for this peril, but it is more likely that you will need to add this as an optional endorsement to your policy.
• Mold and water backup. If mold occurs because of damage from a covered peril, your homeowners insurance will likely pay for remediation. “When there’s a leaking pipe, that’s harder because the insurance company sees it as negligent,” according to Cruz. He says most policies have a $10,000 cap on mold mitigation coverage.
• Windstorm coverage. Homeowners who live in a designated Wind-Pool Area may have windstorm coverage excluded from their regular policy, according to the Florida Department of Financial Services. In that case, you will need to buy a separate wind-only policy for coverage.

These exclusions make it essential to review your policy line by line and identify any gaps before hurricane season. Many of Florida’s biggest risks — storm surge, wind damage, mold and sinkholes — require add-on policies or endorsements. Understanding what isn’t covered helps you avoid expensive surprises and make sure your home is fully protected in a high-risk state.

Florida homeowners insurance requirements

Florida doesn’t require its homeowners to maintain insurance on their property, but it is typically a requirement of lenders. If you have a mortgage, you will likely need to provide your lender with proof of coverage.

Within the state, there are companies that operate in the “standard/admitted insurance market.” In the event one of these companies goes out of business, claims for their customers will be covered by the Florida Insurance Guaranty Association.

Some homeowners can’t buy insurance on the standard market. For instance, a homeowner who lives in a high-risk coastal area may be declined coverage. In that case, they could purchase insurance from a “surplus lines” company. These businesses can write policies in Florida, but they are not covered by the Florida Insurance Guaranty Association.

If all else fails, Florida homeowners can also buy coverage from Citizens Property Insurance, the insurer of last resort in the state. This is a government entity created by the Florida legislature.

“Citizens will always take you when no one else will,” Cruz says.

Best Homeowners Insurance Companies in Florida

Florida’s insurance market has become one of the toughest in the country, so comparing companies side by side can help you understand which insurers offer the best balance of price, financial strength and customer satisfaction.

The home insurance market in Florida is dynamic. “We have new companies comes and going all the time,” Cruz says.

However, here’s a look at some of the tried-and-true insurers in the Sunshine State.

How to save on Florida homeowners insurance

If you are trying to reduce your home insurance premiums in Florida, try these strategies:

Hurricane loss mitigation

Florida requires insurers to provide discounts to homeowners who take steps to minimize hurricane damage to their home. These can include the following:

• Securing your roof to walls
• Installing impact-resistant windows and doors
• Reinforcing your garage door with bracing
• Adding hurricane protection shutters
• Installing a secondary water resistance barrier to a roof

“Windows and doors are a huge one,” Cruz says. So start there if you haven’t already updated those.

Adjust your coverage

If you raise your deductibles, it will lower your premiums. Be aware, though, that the deductible is how much you have to pay out of pocket if you sustain a loss.

You could also change your coverage levels. For instance, if you don’t have a mortgage, you may be able to exclude windstorm coverage, although that could be a risky move.

You could also bundle your coverage with auto insurance to get a multi-policy discount. And purchasing umbrella insurance could be a more cost-effective way to obtain liability coverage.

Compare auto insurance quotes

It’s always smart to compare quotes from multiple carriers. Since Florida’s insurance market is constantly changing, you may find premiums vary widely among companies. Working with an independent agent or requesting quotes online can be an easy way to review the available options.

Flood insurance in Florida

The Federal Emergency Management Agency creates flood maps to show where the risk of flooding is greatest. If you live within one of these flood zones, your mortgage company will most likely require you to have flood insurance.

Even if you don’t live in a FEMA flood zone, you may want to purchase flood insurance for additional protection. If you are a Citizens Property Insurance customer, you soon won’t have a choice either. All Citizens policyholders will be required to have flood insurance by 2027, the Pensacola News Journal reports.

The NFIP will provide homeowners coverage of up to $250,000 for dwellings and $100,000 for contents. If you need additional coverage, it can be purchased on the private market. The NFIP sells policies to renters and businesses as well.

To see if you are in a flood zone, you can review the FEMA flood maps online.

Tips for buying homeowners insurance in Florida

To get the best price and the right coverage, follow these steps when shopping for homeowners insurance in Florida.

• Carefully review all deductibles, including those for roofs, hurricane damage, water damage and sinkholes.
• Identify exclusions and decide if you need to purchase endorsements for mold, sinkholes or other non-standard coverage.
• Understand whether a policy will pay for the replacement cost or actual cash value if a claim is made.
• Keep your insurance company aware of updates to your home, including hurricane mitigation upgrades or the addition of potential risks such as pools or trampolines.
• Compare quotes annually to ensure your rates are still competitive.
• Consider working with a Florida agent who understands the complexities of buying home insurance in the state.

What to keep in mind when choosing homeowners insurance in Florida

Florida’s warm climate and coastal lifestyle make it an appealing place to live, but those same conditions create unique challenges when it comes to protecting your home. Hurricanes, flooding, rising rebuild costs and insurer withdrawals have reshaped the market, leaving many homeowners with higher premiums and fewer choices.

Understanding your coverage needs — and the gaps in a standard policy — is essential in a state where weather risks can be both frequent and severe. Taking time to compare quotes, review financial strength ratings and evaluate customer service history will help you find a company you can rely on when a storm hits.

The right policy won’t eliminate Florida’s risks, but it can give you financial protection and peace of mind. Careful shopping and a clear understanding of your options are your best tools for securing dependable coverage at a fair price.

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