In Florida, homeowners insurance rates are on the rise. In 2016, the rates rose by 33%. The rates vary by county. To avoid paying a higher premium, consider taking advantage of discounts for adding certain protective devices to your home. Flood damage is one the most common claims in Florida.
Since 2016, rates have increased by 33%
Florida is experiencing an increase in homeowners insurance premiums. 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. It is not the only reason Florida insurance rates have risen. It's becoming difficult for small state insurers to be competitive in Florida. In fact, six Florida insurance companies declared bankruptcy this year.
The increase in insurance costs can be partly attributed to the increased risk of storms. Reinsurance costs have also increased. Some reinsurers are considering withdrawing from Florida, while other are increasing their rates. The premium is passed to the consumer, who pays between 35%-50%.
Florida flood damage is a common claim
Flood damage coverage is something you should look into if there's flooding. 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 structural damage and thousands of dollar worth of damage. Water damage can happen to homeowners regardless of whether it was caused by a hurricane, a natural disaster or other factors. Florida homeowners insurance provides flood coverage. Flood damage can also result from mudflows and overflowing rivers. Flood damage can be as little as one inch in your home.
Florida home insurance includes liability coverage
Liability coverage is an important part of homeowners insurance. It covers any medical expenses you incur after an injury to someone else. It also covers other possible expenses that could arise due to negligence. In the event that you are sued due to negligence, you should have sufficient liability coverage to cover these expenses. You should hire an experienced agent to evaluate your policy and ensure you are receiving the best rates possible.
Florida homeowners insurance covers liability. The amount of coverage will vary depending on the type of property and its contents. Separate insurance is required for detached garages. The typical limits for detached garages is 2% or 10% of your main residence's coverage. You can buy higher limits if necessary. If you rent your detached structure out, or use it for business purposes, inform your agent. You may need specialized coverage for these situations.
Get Discounts on Protective Devices for Your 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 could reduce the overall cost of smart home upgrade costs and encourage safer homes.
Apart from smart home technology, there are many ways to protect your property. You can, for example, install an alarm system. These devices will help protect your home from theft and fire. These devices can help you reduce your property insurer premiums.