Home Insurance Florida Helps Avoid Financial Disaster

Home Insurance Florida Helps Avoid Financial Disaster

For homeowners in the Sunshine State, home insurance Florida is an absolute necessity.  As elsewhere, a home represents the largest financial investment of most people’s lives – not to mention the emotional and social aspects of homeownership.  People naturally want protection against substantial damage or the complete loss of their homes.  For Floridians, locating reasonable home insurance rates is especially challenging. 

Due to its geography, Florida is very susceptible to natural disasters.  The heightened risk that this presents for insurers makes home insurance Florida cost-prohibitive for many.  Comparison shopping is essential to get the best rate possible for home insurance Florida.

Home insurance Florida rates have been maintained at artificially low rates for the past few years by mandate of the state Legislature.  Consequently, many insurers have been unable to generate premium revenue commiserate with their risk exposure.  Carriers must compensate for this by increasing premiums more dramatically than would otherwise be the case.  Many homeowners’ policies will be cancelled, and those whose coverage is maintained will see extreme price increases.   Those residing in especially high-risk areas such as Sarasota or Manatee counties will be particularly impacted. 

When beginning your search for home insurance Florida, your first step should be making sure that your prospective insurer is legitimate.  Many unscrupulous operators have exploited Florida homeowners by taking advantage of the need for low-cost home insurance policies in the state.  Verify a company’s credentials with the state Commissioner of Insurance.  Having done so, your best chance of obtaining a reasonable premium is through an independent insurance agent.  Unlike “captive” agents who represent a single insurer, independent agents can issue binding coverage through numerous carriers.

The following tips can greatly increase your chances of obtaining affordable home insurance Florida:

*   Insure for slightly less than the customary amount for your fire coverage. 

The main factor, which determines your premium, is your home’s replacement cost.   As most fires are extinguished long before total destruction of a dwelling occurs, insuring at 75 to 80 percent of replacement value is a prudent.

* Omit superfluous items from your policy.

Policies frequently include coverage for expenses such as hotel or short-term apartment rental costs during a home’s repair or reconstruction following a loss.  As many relief organizations offer shelter and other assistance with such needs, this coverage is largely unnecessary.

* Choose a slightly higher deductible.

The higher your deductible, the lower your premium, although a higher deductible increases your out-of-pocket cost in event of a loss, there are frequently means of offsetting this.  Grants or special low-interest loans, which assist disaster survivors, can greatly reduce your out-of-pocket expenses.

Through perseverance and effort, you can get home insurance Florida for protection against any unforeseen disaster – at a price, which will not wreak havoc with your finances.

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