5 Best Florida Homeowners Insurance Companies
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Additional Florida Homeowners Insurance Companies to Consider
Not every company we analyzed made our list. There are several well-known companies with solid reputations that could be a good fit for you if they offer a quote for a home.
State Farm
When we reached out to State Farm for a quote, the agent let us know it couldn’t insure our house because it was more than 21 years old. However, the company was able to provide a quote from Citizens. State Farm is among the largest homeowners companies in Florida. It offers online quotes, has an A++ (Superior) AM Best rating, and could be worth a look if your home was built less than 21 years ago.
Nationwide
We went through Nationwide’s online quote system, but the company wasn’t able to provide a quote for our property. If you can get a quote from Nationwide, the company could be a good fit. It has a low number of NAIC complaints for a company of its size and an A+ (Superior) AM Best rating, making it one of the more financially secure homeowners insurance companies in Florida.
Progressive
We filled out Progressive’s online quote form and were referred to Kin. Progressive has an A+ (Superior) rating from AM Best for financial stability, and an expected number of complaints for a company of its size, according to the NAIC.
Allstate
We went through Allstate’s online quote system and received a quote from Security First (a company with a complaint rate that was 13 times higher than expected, according to the NAIC). The quote provided offered the least amount of coverage for the price, relative to other company quotes collected.
Florida Homeowners Insurance Basics
Why a Homeowners Insurance Company’s Financial Strength Matters
A homeowner’s insurance company’s ability to pay out claims depends on its financial strength. If an insurance company does not have the resources, it might not be able to pay for damages covered by its policies, especially after a major event like a hurricane. This is particularly important in Florida, where multiple property insurers have undergone liquidation in the last few years.
Independent rating agencies like AM Best and Demotech review the finances of insurance companies and give those companies a letter grade based on their ability to pay claims. Some mortgage lenders might not accept property insurance from insurers with a score below A because of the added risk.
How a Wind Mitigation Inspection Works
In a wind mitigation inspection, an insurer sends a certified inspector to check how well your home resists wind damage. The inspector looks at parts of your home like the roof, doors, and window coverings, and checks whether your roof has a secondary water barrier to prevent leaks. Based on this inspection, you could qualify for a wind mitigation discount on your homeowners insurance premiums. We were quoted discounts from $700 to more than $1,800 for a $300,000 home.
When You Should Buy Flood Insurance
If you live in a high-risk flood zone, you are likely required to maintain flood insurance by your mortgage company. If you live in an area where flood insurance isn’t required, you may still want to purchase a policy, because the average homeowners policy doesn’t cover damage from flooding.
FEMA offers an online flood map where you can visualize the risk of flooding in your area. With that, you can decide if it’s worth buying flood insurance on top of your homeowners insurance policy. For example, Kin allowed us to add flood insurance to our quote.
What a Federal Disaster Declaration Means
A federal disaster declaration is when the President of the United States determines that an area has been so badly damaged, it’s beyond the resources of the city or even the state to handle the repairs. This could happen after a major disaster like a hurricane or earthquake. If you live in an area covered by such a declaration, you could be eligible for extra resources through FEMA. This includes grants to repair your home as well as funds for temporary housing as you wait to return home.
What to Do When Your Homeowners Insurance Company Is Insolvent
If your homeowners insurance company is declared insolvent and owes you for insurance claims, you are still covered by the Florida Insurance Guaranty Association (FIGA). However, FIGA limits coverage from $300,000 to $500,000, depending on your claim. If your policy limit was higher and you face more than $300,000 of damage, you are not guaranteed reimbursement for the full amount of damage.
If you aren’t in the middle of a claim and learn that your insurance company is going insolvent, get quotes from other insurers to make sure you maintain coverage. Given the risk of dealing with an insolvent company, it’s crucial to work with an insurer that has a strong financial rating, such as Chubb (A++), USAA (A++), Nationwide (A+), and Progressive (A+).
Frequently Asked Questions
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The average premium for homeowners insurance in Florida was $4,231 per year in 2019. This is more than double the national average of $1,544 per year. Your premium will be based on factors like:
- The value of your property
- Your location
- The type of coverage
- The insurer your work with
- Any discounts received
- Any optional add-ons on the policy
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Homeowners insurance is not required by the state of Florida. However, mortgage lenders usually require you to buy homeowners insurance until you have paid off your home. If you own your home outright, you are not required to have homeowners insurance. But skipping it is very risky since you could lose your home to a natural or other disaster.
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Homeowners insurance is expensive in Florida because of the high risk of catastrophic damage from weather events. For example, major hurricanes can destroy entire neighborhoods, leading to massive costs for insurers. Insurers need to charge more to account for the high number and cost of claims in Florida.
Methodology
For this review, our team researched 11 of the top homeowners insurance companies in Florida. We scored companies based on their:
- Quote, coverages and value (35{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Quote process (25{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- AM Best financial strength rating (20{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Customer satisfaction, as indicated by each company’s NAIC complaint index (15{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Customer service (5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
We asked for a price quote on a 1,824-square-foot home built in 1981 in the 32244 ZIP code (Jacksonville) with a gable roof, framed walls, and vinyl siding. We valued each quote according to the following:
- Premium (17.5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Main structure coverage (17.5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Loss of use coverage (17.5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Personal liability coverage (12.5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Personal property coverage (10{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Medical payments (5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Hurricane deductible (5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Ordinance or law coverage (5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Fungi/mold coverage (5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
- Other structures (5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7})
