Florida Property Insurance Rates
Despite its long-time reputation as a vacation area and ideal retirement community for Yankees pining for a warm climate, Florida has taken several hits in the last few years. For one thing, many of the metro areas’ real estate markets in Florida have taken a beating recently. Also, the negative effects of recent hurricanes have caused many to worry about owning a home that’s on the beach. Some of the biggest worriers are property insurance companies, which have actually dropped many of their clients who live too close to the beach. Florida property insurance rates can vary widely, and it can make quite a difference in whether your home is five miles from the beach or 75 miles from the beach.
Florida Property Insurance Rates Compared to Other States
One source shows that the average homeowners insurance rate in Florida is about $1,000 a year in October 2009, down slightly from the month before. This is still much higher than Florida’s two neighbors: Georgia, with a $742 annual premium, and Alabama, with a $773 annual premium. But Florida property insurance rates are much lower than in Louisiana, which made worldwide headlines when Katrina devastated New Orleans in 2005.
Buying a Home on the Coast and Considering Florida Property Insurance Rates
Generally, states that have more miles along the coast tend to come with higher insurance rates than states that are landlocked. Landlocked states Utah and Idaho, for example, both come with an average insurance premium below $400. So you may not want to buy your home right along the Atlantic. Sometimes it’s important to be able to settle for security instead of glamour. Consider at least buying a home that’s not right off the coast. This will not only keep your Florida property insurance rates low, but it will also decrease the chances of your home being swept away during a storm. In Florida, this one decision to own your home at least a few miles inland will generally make the biggest difference in decreasing your rate. It will also make you safer if a hurricane does strike.
Other Ways to Reduce Your Florida Property Insurance Rates
If you’re coming from certain parts of the North, you may be so overjoyed with the lack of an income tax and the more affordable property insurance rates that you may not be that worried with reducing your property insurance premium. But if you’re still not content with your insurance rate, consider lumping it together with your car insurance policy — in other words, get both your property and vehicle insurance from the same company. Then seek ways to keep your home safer: install a fire extinguisher, make sure all of your smoke alarms are installed correctly and located in the best places. Consider purchasing the property insurance policy from the same company that you have your car insurance with. Companies will often offer at least a small discount to try to get you to buy as many policies as possible from them. Also, don’t hesitate to be upfront with your agent, and ask him or her how you can reduce your rate. If you’re not satisfied with your rate or feel that your company doesn’t provide enough discounts, then don’t hesitate to shop around. Do not be satisfied just with a low premium: customer service is important also. Beware if your agent doesn’t seem helpful or friendly. If you ever make a claim, you want to be confident that your insurance company will act quickly and efficiently. Every company is somewhat different, and some may offer breaks or incentives that others don’t have.