When it comes to hurricane-prone areas, there’s no state more at risk than Florida. In fact, Florida is the most hurricane-prone state in the US, with an average of six hurricanes hitting the Sunshine State every year.
That’s why it’s no surprise that homeowners’ insurance rates in Florida are some of the highest in the country, with the average premium costing $2,059 per year. But how much does house insurance cost in South Florida? Let’s look.
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How much does house insurance cost in South Florida?
The answer to this question depends on several factors, including the age and value of your home, your credit score, and the amount of coverage you need. However, on average, homeowners’ insurance in South Florida costs about $2,059 per year.
Of course, this is just the average rate—your actual premium will vary depending on your individual circumstances. For example, if you own an older home, you may be able to get a cheaper policy because older homes are typically not as expensive to insure. On the other hand, if you have a newer home or one that is worth a lot of money, you can expect to pay more for your premiums.
Credit scores also play a role in determining your homeowner’s insurance rates. In general, people with higher credit scores tend to get lower rates because they are seen as less of a risk by insurers. So, if you have a good credit score, be sure to shop around for quotes from different insurers to see who will give you the best deal.
Other Factors to Consider in Home Insurance Premiums in South Florida
Construction Costs
One of the biggest factors impacting homeowners’ insurance rates is the cost of construction in your area. The more it costs to build or rebuild your home, the higher your insurance rates will be. This is because insurers know that they’ll have to pay out more in the event of a total loss. Therefore, if you’re looking for affordable home insurance in South Florida, it’s important to buy a house that isn’t too expensive to rebuild.
Claims History
Another factor that will impact on your house insurance rates is your claims history. If you’ve had a lot of claims on your previous policies, insurers will see you as a high-risk customer and charge you accordingly. On the other hand, if you’ve never made a claim, you’ll be seen as low-risk and will get a lower rate. Therefore, it’s important to shop around for insurance from companies that take your claims history into account.
Deductible Amount
The deductible is the amount of money you must pay out-of-pocket before your insurance policy kicks in. The higher your deductible, the lower your premium will be. However, you need to make sure that you can afford to pay the deductible if something does happen. Otherwise, you’ll be stuck with a huge bill and no help from your insurer.
Lastly, the amount of coverage you need will also affect how much you pay for your house insurance policy. If you live in an area that is prone to hurricanes or other natural disasters, you’ll need to get more coverage than someone who lives in a less disaster-prone area. The same goes for if you have valuable items in your home that need to be insured for their full value—jewelry, art, etc.
When Buying Insurance in South Florida What Should You Consider?
One of the most important things to consider is whether you want replacement value coverage or actual cash value coverage. Replacement value coverage will insure your home for what it would cost to rebuild it from scratch, while actual cash value considers depreciation. So, if your home is destroyed by a hurricane, replacement value coverage would pay to rebuild it while actual cash value coverage would only pay for the current market value of the property.Â
Another thing to consider is what kind of deductible you want. A deductible is the amount of money you must pay out-of-pocket before your insurance policy kicks in. So, if you have a $500 deductible and your home is damaged by a storm and it costs $5000 to repair, you will only have to pay $500 and your insurance would cover the other $4500. The higher your deductible, the lower your monthly premium will be.
Finally, you need to decide what kind of perils you want to insure against. The common perils included in most policies are fire, windstorm, lightning, and hail. You can also purchase additional riders to cover perils such as flood or valuable items damage.
Finally
The bottom line is that house insurance rates in South Florida are some of the highest in the country. However, how much you pay for your policy will depend on factors like the age and value of your home, your credit score and the amount of coverage you need. So be sure to shop around and compare rates from different insurers before deciding.
If you want to discuss options for house insurance, please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:00 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!
Rob Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953.
