Best Homeowners Insurance in Florida of March 2024 (2024)

×

• State Farm: Our pick for new homeowners
• Allstate: Our pick for extended coverage
• Progressive: Our pick for bundling
• Chubb: Our pick for high-value homes
• Security First: Our pick for hurricane protection

According to 2023 homeowners insurance data from Quadrant Information Services, the average cost of homeowners insurance in Florida is $2,490, which is slightly lower than the national average of $2,511.25.

Compare the Best Homeowners Insurance in Florida

Learn more about each of the providers on our list using the table and provider summaries below before requesting quotes from your top picks.

Finding the right home insurance provider in Florida can be a difficult experience because of the many challenges in the state’s dynamic insurance market. To secure ideal coverage, we recommend keeping these factors in mind:

• Look for hurricane and flood coverage: Houses in Florida carry a significant risk of hurricane and flood damage, which makes it important to choose an insurer that protects against both disasters. Consider insurers that provide flood insurance and coverage against hurricane damage or seek out individual policies through the National Flood Insurance Program. Also, assess policy hurricane deductibles, which can be unusually high.
• Assess your insurer’s financial stability: Many insurers have stopped offering homeowners insurance in Florida because the state has faced many recent natural disasters, creating significant losses. Before choosing an insurer, assess its financial stability. You can look at a company’s AM Best rating to determine if it can afford to pay substantial claims.
• Evaluate customer satisfaction and claims history: Homeowners in Florida face high insurance rates, claims-handling delays, constant changes in the market and a lack of competition. When looking for the right insurer, read customer reviews and only consider those with a high customer satisfaction rate.

The cost of homeowners insurance can vary greatly from person to person, but geographical location plays a large role in determining cost, especially when you live in a state with significant risks. Florida is known for having relatively expensive rates compared to other US states due to the risk of natural disasters such as hurricanes, tornadoes and floods, so it is important to shop around and make sure that you are getting the best deal before you make a purchase.

To make sure you get the best deal on a home insurance policy, take a look at the average premium for your city and zip-code before getting quotes.

There was a significant increase in home insurance rates in 2023, but the situation appears to be stabilizing. Based on an issue brief by the Insurance Information Institute (Triple-I), legislative changes, like the elimination of one-way attorney fees and assignment of benefits reform, might reduce insurance costs in 2024. However, the impact of the state’s legal remedies will not be immediate.

The changes might encourage insurers that abandoned Florida to re-enter the market, offering multiple options and lower rates to homeowners. But rates will continue to depend on the damage caused by future natural disasters and overall market conditions.

An issue brief published by Triple-I shows home insurance rates in Florida are nearly three times higher than the average U.S. policy cost. Based on a news report by WFSU Public Media, the state’s insurance costs have increased by 57% since 2015. This increase is primarily because of a high number of litigation issues and natural disasters.

Major hurricanes that caused damage in Florida during the past two decades include Charley, Ivan, Jeanne, Irma, Ian, Michael and Idalia. Starting with Hurricane Andrew in 1992, no fewer than seven domestic insurers and one non-admitted carrier became insolvent. Several insurers, including AIG and Farmers Group, recently stopped insuring homes in the state.

The following factors contribute to higher premiums in Florida:

• Weather-related catastrophes: Florida faces consistent catastrophic weather-related events like hurricanes and tornadoes. These events cause severe damages and a high number of claims for insurers. Because of significant homeowner losses, insurers left the state.
• Fraud and litigation issues: There are many litigation issues and instances of roof scams in Florida. The high number of lawsuits increased operating costs for insurers, causing pricier policies.
• Market conditions: As more insurers left Florida, it caused a lower number of available options. This scarcity of insurers offering homeowners insurance also affects the affordability of policies.

Based on our research, the following are common reasons why Florida homeowners file insurance claims:

• Weather-related events: Natural disasters like hurricanes and unnamed storms cause wind damage to roofs and structures, flooding and downed trees that damage homes. Data from the Florida Office of Insurance Regulation shows homeowners filed 955,852 residential property claims in the wake of Hurricane Irma. Homeowners insurance usually covers hurricane damage, but you must purchase a separate policy to protect against floods.
• Wildfires: The recent data from Triple-I shows wildfires burned 105,475 acres in Florida. A standard home insurance policy protects you against structural damage because of fire and smoke while also covering your possessions.
• Theft: Crimes like theft and vandalism can also result in home insurance claims in Florida. A homeowners policy protects you against damage due to break-ins, vandalism and theft of personal property.

If you want to lower your home insurance costs, you can install storm shutters on your property to protect against wind damage. You can also add smoke detectors, alarms and indoor sprinklers for fire protection.

Coastal homes, or properties near major bodies of water, are often beautiful, idyllic and more prone to risk than their inland counterparts. They’re much more likely to be damaged or destroyed from a variety of natural disasters, from hurricanes to flooding to erosion of the ground they stand on.

Because of this, coastal home insurance offers comprehensive coverage specialized to protect coastal homes from the unique risks they face. It also typically includes individual deductibles for windstorm, hurricane and named storm claims, whereas standard home insurance typically includes a single deductible for most or all claims. These separate deductibles are usually set at 1% to 10% of your dwelling limit.

Here’s how coastal insurance differs from standard home insurance:

It may also be more difficult to acquire. Since it is not offered by major carriers, coastal dwellers must seek coverage from specialized insurance carriers or Florida’s FAIR plan. You may also need two other insurance policies, flood insurance and windstorm insurance, to ensure full protection of your coastal home.

The Florida home insurance market has been in a state of recent turmoil, with several insurers leaving the market, dropping risky policies and tightening up eligibility requirements.

Other national carriers, such as Allstate, Nationwide and State Farm, write policies in Florida through another resource, according to John Espenschied, owner of Insurance Brokers Group. Those companies are non-admitted carriers, meaning the state does not back a company or the company may not follow state insurance regulations.

To reduce the risk of having your policy canceled, Jeff Caesar Chukwuma, founder and senior partner at Chukwuma Law Group in Florida, recommended homeowners “make sure their roof is in good shape by regularly inspecting it and making minor repairs before they become major ones” and replacing your roof before it reaches the 15-year mark.

Although several insurers have left Florida, the recent developments indicate an influx of new insurers. According to WTSP, five new insurance providers will start offering policies in the state next year. This will result in more options and lower premiums for homeowners.

However, the insurance companies we recommend enjoy a solid financial reputation and are known for offering dependable coverage to Florida residents.

Which Insurance Companies Are Pulling Out of Florida

According to News4JAX, 16 property insurance providers have stopped writing new policies in Florida in 2022 and 2023. Among those companies, AIG ceased insuring new properties along Florida’s shoreline, and Farmers Group stopped writing new policies statewide entirely.

According to the Pensacola News Journal, other providers that have withdrawn from or limited property insurance policies in Florida include AAA, Bankers Insurance, Centauri Insurance and Lexington Insurance, a subsidiary of AIG.

As of February 2024 we are unable to request quotes from Liberty Mutual using Florida zip codes, although no official statement as been made by the company.

Why Are Home Insurance Companies Leaving Florida?

Home insurance companies are leaving Florida because prolific natural disasters in the state have caused insurers to rethink coverage responsibilities. According to the Florida Division of Emergency Management, the most common disasters in Florida include floods, hurricanes, tropical storms, severe thunderstorms, tornadoes and wildfires. Florida also ranks above every other state for the most tornadoes per square mile. Farmers and AIG cited catastrophe losses from disasters like hurricanes and floods as reasons for their decisions.

Flood insurance is not included in standard home insurance policies, but it can be essential for Florida homeowners. You can purchase a flood insurance policy from the National Flood Insurance Program (NFIP). Alternatively, a network of more than 50 providers, including Allstate, can assist you in getting quotes and purchasing an NFIP policy.

While the NFIP is a common policy to find, some insurers do offer private flood insurance that usually compares favorably to NFIP coverage. See the table below for a closer look at where you can obtain private flood coverage.

Read our comprehensive guides on the following insurance categories to find top providers and peace of mind that you have all aspects of life covered.

• Leading Pet Insurance Companies
• Top Travel Insurance Companies
• Best Homeowners Insurance Providers
• Leading Renters Insurance Companies
• Affordable Renters Insurance Providers
• Top Term Life Insurance Providers
• Budget-friendly Homeowners Insurance Companies

Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:

• Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
• Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
• Availability and ease of use (15%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
• Brand trust (15%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.

Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.

AM Best Disclaimer

Saad Imran is a personal finance writer with expertise in insurance, loans, credit cards and mortgages. When not writing, he’s a cat enthusiast who loves playtime with his furry companion.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.