Moving to—or living in—Florida comes with many perks: sunshine year-round, vibrant communities, and diverse lifestyle options. But as any Floridian homeowner can tell you, one thing that’s far from pleasant is securing and maintaining homeowners insurance.
Between skyrocketing premiums, carriers pulling out, and confusing policy details, it can feel like an impossible hurdle. That’s why I invited Christian Hervia, franchise owner at John G Insurance and a 15-year veteran of the Florida insurance industry, to break down everything you need to know about protecting your home here in the Sunshine State.
In this in-depth guide, we’ll cover:
- Why Florida Home Insurance Costs Have Exploded
- Recent Legislative Reforms That Aim to Stabilize Rates
- What Florida Home Insurance Actually Covers (And What It Doesn’t)
- Common Pitfalls to Avoid When Shopping for Coverage
- How Premiums Vary by Property Type
- Tips for Lowering Your Premium Without Sacrificing Protection
- Timing Your Purchase Around Hurricane Season
- Why Communication with Your Agent and Realtor Is Crucial
Whether you’re a first-time homebuyer, a long-time Florida resident, or simply curious about homeowners insurance in our state, this guide will cut through the noise and give you practical, actionable advice.
1. Why Florida Home Insurance Costs Have Exploded
Florida’s Unique Risk Profile
Unlike any other state, Florida is surrounded by water on three sides and lies squarely in the path of tropical storms and hurricanes. On average, we see 28–30 named storms each year during hurricane season, which can stretch from June through November (and sometimes longer, depending on the year). Significant storms like Hurricane Irma (2017) and Hurricane Ian (2022) caused billions of dollars in damage—replacing a single roof can cost anywhere from \$20,000 to \$30,000.
Insurance Fraud and Litigation
Beginning around 2015, homeowners insurance fraud in Florida surged. In many cases, minor damage—say, a small kitchen leak—was exaggerated into a \$50,000 or even \$100,000 claim by unscrupulous adjusters and attorneys. As Christian explains, “Inflated claims forced carriers to pay far more than actual damages, leading to skyrocketing rates. There were even instances where a \$50,000 payout resulted in \$100,000 in legal fees.”
Inflation in Construction Costs
For insurance purposes, policies in Florida cover a home’s replacement cost—not its market value. Between 2020 and 2023, the cost of basic building materials like a 2×4 jumped from \$2 to \$9. Multiply that across hundreds of studs, plus drywall, wiring, plumbing, and labor, and you quickly see why rebuilding a home can double or triple in cost. From 2015 to 2025, Florida homeowners saw a 100%+ increase in both replacement costs and insurance rates.
Carrier Insolvencies and Market Exits
When hurricanes produce massive claims all at once, some insurers can’t keep up. United Property & Casualty, for instance, became insolvent after Hurricane Ian. Other carriers—such as Federated National and Weston—also left the Florida market, often citing fraud or untenable risk exposure. Each departure reduces competition and puts upward pressure on premiums for everyone remaining.
2. Recent Legislative Reforms That Aim to Stabilize Rates
In response to the crisis, Florida lawmakers enacted several key reforms in 2024–2025 designed to curb fraud, shift policies out of the struggling Citizens program, and offer temporary relief on premium taxes. The most impactful changes include:
2.1 Elimination of Assignment of Benefits (AOB)
Previously, homeowners could “assign” their entire insurance policy to a public adjuster—allowing that adjuster to negotiate and file claims on their behalf. While intended to help policyholders, this led to rampant overbilling and fraud. The new law prohibits AOB assignments, making it far harder for fraudulent claims to inflate payouts.
2.2 Repeal of Attorney Fees
Under prior rules, insurers were often forced to pay both the claim and the winning side’s legal fees whenever a homeowner sued. The reform now requires each party to pay their own attorney fees, disincentivizing excessive litigation and reducing costs insurers must pass on to policyholders.
2.3 Citizens Property Insurance Eligibility Changes
Florida’s state-run insurer, Citizens, was once a “last resort” option. But as private carriers exited, many homes—especially older roofs and properties with high replacement costs—were forced into Citizens. New eligibility rules now require homeowners to accept any private market quote within 20% of Citizens’ rate. By steering more policies to private insurers early, lawmakers hope to lighten Citizens’ portfolio and gradually strengthen the private market.
2.4 One-Year Waiver on Premium Taxes (HB 773)
A one-year suspension of state taxes on homeowners and flood insurance policies is projected to save Floridians roughly \$500 million. While temporary, this relief helps cushion the blow of skyrocketing premiums.
3. What Florida Home Insurance Actually Covers (And What It Doesn’t)
Many buyers assume their homeowners policy is an all-in-one safety net. In reality, several crucial coverages are separate or limited. Here’s exactly what a typical HO-3 policy in Florida includes:
3.1 Coverage A – Dwelling
This covers the full replacement cost of your home’s structure if it’s destroyed by a peril like fire, hurricane, or lightning. It does not cover market value, so when you see replacement cost estimates jump from \$300,000 to \$600,000 over a few years—due to inflation in materials—that figure directly affects your premium.
3.2 Coverage B – Other Structures
Anything detached from your home—like a shed, fence, or pool house—falls under this category. Typically, it’s a percentage (e.g., 10%) of Coverage A.
3.3 Coverage C – Personal Property
This covers your belongings (“flip your home upside down, and everything that falls out”). Standard policies often reimburse at actual cash value (ACV), meaning depreciation is applied. For higher-value items (jewelry, watches, art), you’ll likely need a scheduled personal property endorsement to insure the full value.
3.4 Liability & Medical Payments
- Liability covers you if someone is injured on your property and sues for damages. Typical limits are \$100,000–\$300,000.
- Medical payments cover small-scale medical bills (\$2,000–\$5,000) for guest injuries, even if you’re not found legally liable.
3.5 Loss of Use (“Additional Living Expenses”)
If your home becomes uninhabitable after a covered peril (e.g., a hurricane breaches your roof), this pays for temporary living costs (hotel, meals, etc.) for up to 12 months.
4. Common Pitfalls to Avoid When Shopping for Coverage
Not all policies are the same. Here are several crucial red flags and questions to ask your agent before you sign on the dotted line:
4.1 “Basic” Policies with Massive Exclusions
Some “budget” plans (e.g., from certain direct insurers) may exclude internal water damage entirely. If a pipe bursts or a leaking faucet ruins your hardwood floors, a basic policy could refuse to pay.
4.2 Hurricane vs. Flood Coverage
- Hurricane Coverage (wind, structural damage) is almost always required by lenders for coastal homes.
- Flood Coverage (rising water from outside) is completely separate and usually not included. Ask your agent, “Is flood included?” If not, you must purchase a standalone flood policy.
4.3 Deductibles, especially for hurricanes
Florida policies often come with a percentage-based hurricane deductible (2%, 5%, or even 10% of the dwelling limit). On a \$300,000 policy, a 5% deductible means \$15,000 out of pocket before insurance kicks in. Always verify whether your deductible is a fixed dollar amount or a percentage.
4.4 Personal Property at ACV vs. RCV
If your \$3,000 television is covered at actual cash value, a 3-year-old TV might only be worth \$300 now. Ensure high-value items are on a scheduled endorsement to get replacement cost rather than “depreciated” payouts.
4.5 Association “Hole” for Condos and Townhouses
- Condos (HO-6 policies): Your master association policy typically covers the building’s structure and roof. Your individual HO-6 covers “walls-in,” personal property, and liability. If you skip hurricane coverage, any interior damage is your responsibility.
- Townhouses (HO-3 vs. association master policy): Some townhomes fall under a master commercial policy, requiring you to only carry an HO-6. Others need a full HO-3. Always review both your personal and association policies so you know exactly what’s covered.
5. How Premiums Vary by Property Type
1. New Construction (1,500 sq. ft., \$300K–\$400K Replacement Cost)
- Average Annual Premium: \$800–\$1,500
- Modern materials, updated codes, and “full hurricane protection” (impact windows, reinforced garage door) yield lower rates.
2. Older Single-Family Home (1,500 sq. ft., Built 1972)
- 10-year-old shingle roof, located near coast
- Full hurricane protection upgrades (impact doors/windows)
- Average Annual Premium: \$3,500–\$6,000 (depends on exact location, wind mitigation features)
3. Townhomes
- If covered under a master association policy, you may only need an HO-6 (walls-in).
- If not, you’ll need an HO-3 for structure, roof, and walls—premiums vary widely by roof age, association discounts, and building materials.
4. Condos (High-Rise HO-6)
- Example 1: 2007-built unit (1,200 sq. ft.) — \$1,800/year for \$100,000 dwelling coverage, \$500 hurricane & all-perils deductible (impact windows grant discount).
- Example 2: 1974-built unit (1,300 sq. ft.) — \$2,800/year for same dwelling limit & deductibles (older building’s age drives higher premium).
Key Factor: Being “in the wind pool” (within two miles of the coast) significantly increases rates. If you’re 20–30 miles inland, premiums generally drop due to reduced hurricane exposure.
6. How to Lower Your Premium Without Sacrificing Protection
6.1 Shop with an Experienced Broker
Work with a broker who offers multiple carriers. A single-carrier agent can’t compare discounts and coverages the way a broker can.
6.2 Take Advantage of Wind Mitigation Credits
Schedule a wind mitigation inspection to document key features:
- Roof-to-structure attachments (nails, clips, single/double wraps)
- Plywood thickness
- Secondary water resistance (SWR) film under shingles
- Impact-rated doors, windows, and shutters meeting Miami-Dade criteria
Proper mitigation can yield discounts from \$500 up to \$5,000, depending on carrier.
6.3 Update Coverage After Renovations
If you install a new marble floor, renovate kitchens, or add high-value items (art, jewelry), notify your agent so your replacement cost remains accurate. Otherwise, you risk underinsurance.
6.4 Adjust Optional Coverages
- Lower or remove coverage for other structures (sheds, fences) if not critical.
- Consider reducing personal property limits if you have separate policies for jewelry or art.
- Adding a centrally monitored alarm system can yield modest savings (a few hundred dollars per year).
6.5 Evaluate Deductible Options Wisely
Raising deductibles can lower premiums—but with a 5% hurricane deductible on a \$500,000 home, you could be responsible for \$25,000 out of pocket. Choose the lowest deductible you can afford for greater peace of mind.
7. Timing Your Purchase Around Hurricane Season
April–May is the best window to bind or renew policies. As summer approaches, carriers begin to limit new business to conserve capacity. Here’s what you need to know:
- Private Insurers: After closing, you typically have 15 days to bind coverage.
- Citizens Insurance: Allows 45 days post-closing for coverage. If you miss this, there is a mandatory 30-day waiting period with no protection.
If your closing date shifts—say from May 1 to May 30—notify your agent immediately. Many carriers will honor your original rate if they receive written notice or an addendum. Wait too long, and the quote you had may vanish.
8. Why Communication with Your Agent & Realtor Is Crucial
Throughout our conversation, Christian emphasized: “Communication is everything.” Here are two common scenarios where clear communication saves deals:
8.1 Mortgage Company Changes
If your mortgage is sold to a new lender mid-year, the loan number and lien holder information change. If your agent isn’t notified, the annual renewal bill might go to the old lender, leading to an unpaid premium and policy cancellation. A voice or email update—even 45 days before renewal—can prevent forced placement and lapses.
8.2 Renovations & Major Purchases
If you upgrade your home—new roof, marble floors, kitchen appliances—or purchase high-value items (watches, jewelry, art), tell your agent immediately. Unreported changes can leave you underinsured when disaster strikes.
Final Checklist: What Every Buyer Should Ask Before Closing
- Replacement Cost: “How was it calculated? Full cost or depreciated?”
- Coverage A: What is my dwelling limit?
- Coverage B: Do I need other structures coverage (sheds, fences)?
- Coverage C: Is personal property covered at ACV or RCV?
- Hurricane Coverage: Is it included, and what is my deductible percentage?
- Flood Insurance: Is it part of my policy or do I need a separate flood policy?
- Water Damage: What limits exist for interior water damage?
- Liability & Medical: Do I have at least \$100K liability and \$2K medical payments?
- Loss of Use: How many months of living expenses does my policy cover?
- Wind Mitigation Discounts: Do I qualify for credits on roof clips, SWR, or impact-rated windows?
Conclusion
Homeowners insurance in Florida is complicated, but it doesn’t have to be overwhelming. By understanding the factors driving costs, the recent legislative reforms, and exactly what your policy does—and doesn’t—cover, you can make informed decisions that protect both your home and your wallet.
Key Takeaways
- Florida’s unique storm risk, fraud, and material inflation have doubled premiums in the past decade.
- New reforms (AOB elimination, repeal of attorney fees, revised Citizens eligibility, premium tax waiver) aim to stabilize rates.
- Always verify hurricane vs. flood coverage, deductibles, and personal property limits.
- Use wind mitigation credits, report renovations, and shop multiple carriers to find the best value.
- Communicate early and often with your agent and realtor, especially around renewals and closing dates.
If you ever need personalized help or have questions about your own homeowners insurance, feel free to book a Zoom call with me. I’m Michelle Batty, and my team and I are here to make sure your Florida home is protected the right way.
Michelle Batty
Licensed Real Estate Professional & Team Leader
Miami, Florida
📧 michelle@yourrealitymiami.com
📞 (305) 555-1234
Christian Hervio
Franchise Owner, John G Insurance
15+ Years in Florida Homeowners Insurance
📧 christian.hervio@johngaltinsurance.com
📞 (786) 487-6580
