property claim in florida

Why is Home Insurance So Expensive in Florida?


Home insurance plays an essential role in protecting our most valuable asset: our home.  However, if you’re a Florida homeowner, you’ll have noticed that home insurance premiums tend to be higher compared to other states. But, why is home insurance so expensive in Florida?

Today, we’re exploring the factors that contribute to the high cost of home insurance in Florida and giving some insights into why this is the case. 

  • Location and Climate

One of the main reasons that the cost of home insurance in Florida is higher is due to its geographic location and the associated climate risks. The Sunshine State is prone to hurricanes, (like Hurricane Ian in recent memory), tropical storms, and other weather-related events that can cause serious damage to homes and businesses. Insurance companies factor in the increased risk of such events when determining premiums, which leads to higher costs for homeowners.

Because Florida’s location makes it highly vulnerable to hurricanes and tropical storms, homes that are on the coast are at a higher risk of wind and water damage. The potential for costly repairs and the increased likelihood of filing claims contribute to higher home insurance premiums.

  • High Property Values 

The Sunshine State is known for its beautiful coastal areas, vibrant cities, and desirable neighborhoods. This means that property values here tend to be higher than elsewhere. Insurers take property values into account when calculating premiums, as more expensive homes require more coverage and therefore lead to higher costs.

  • Property Construction and Building Codes 

Florida’s strict building codes, especially in areas prone to hurricanes, are designed to ensure the structural integrity of homes. But while these codes help protect properties from severe weather, they can also increase construction and repair costs. Insurers factor in the potential expenses associated with building code compliance when determining insurance premiums.

  • Insurance Market Competition

Competition among insurance providers can influence premium rates. In recent years, Florida has experienced challenges related to insurance market competition. Factors such as increased claim frequency and severity, as well as concerns over insurance fraud, have led some insurers to limit their coverage or increase rates, reducing market competition and driving up costs.

Helping You To Get Fair Compensation

While home insurance premiums in Florida are high, they reflect the unique risks associated with living in the state. Catastrophic events, such as hurricanes or severe storms, can result in a high volume of claims in a short period. To ensure financial stability and the ability to pay claims promptly, insurers adjust premiums accordingly.

As a homeowner, when it comes to your home insurance policy, it’s important to understand it and take time when it comes to home insurance renewal. Shop around to get the best value and coverage, know your rights, and understand exclusions and denials. Keep a home inventory list and paperwork records, so that you’ll have everything to hand should your home suffer an unpredictable and unfortunate event, such as a  hurricane, flood, or fire.

At Jenkins Law PL, we understand the complexities of the Florida insurance market. We also understand the games that insurance companies play to avoid making payouts. Our experienced team can help you navigate the challenge of making a home insurance claim. We have the compassion and drive to help you if you’re battling a home insurance company.

When you need help, we’re here for you.  So, get in touch to find out how to take the important next steps in making a claim.