Best Homeowners Insurance In Florida 2022

Florida homeowners, more than those in any other state, have to wrestle with insurance problems. Here’s a look at the latest information and average home insurance costs.

What to do if your Florida homeowners insurance company goes out of business

Thousands of Floridians have struggled to find new homeowners insurance after their insurance companies liquidated, went out of business or simply stopped selling policies in the state.

State Chief Financial Officer Jimmy Petronis lists 13 Florida insurance companies in liquidation—and that doesn’t include insurers that simply closed up shop in the state.

The Florida Insurance Guaranty Association (FIGA) is a state program that administers payments and claims involving temporarily insolvent property and casualty insurers. Here’s what happens if your Homeowners insurance company goes bankrupt and files for bankruptcy.

A state court enters an order of liquidation.
The Florida Insurance Guaranty Association handles claims for the company.
Policyholders pay their dues to the association and look for a new Homeowners insurance company.
The association administers pending claims involving the insolvent company before liquidation or within 30 days after the liquidation order unless the policyholder changes the policy before the end of 30 days. The association pays covered
claims between $101 and less than $300,000.
FIGA also refunds unearned premiums. For example, if you have paid your insurance for the year, but your policy ends due to liquidation.

Hurricane Ian Insurance Information

Contact your insurance company
Florida homeowners with damage from Hurricane Ian should contact their Homeowners insurance companies as soon as possible to report the damage and get the claims process going.

Insurance companies will deploy their mobile disaster units, which will help homeowners submit claims and start getting reimbursement for hurricane-related costs.

Federal disaster assistance is available
Florida residents who don’t have enough Homeowners insurance to pay for damage from Hurricane Ian are eligible for individual assistance from FEMA. The federal government will provide up to $37,900 for home repairs and another $37,900 for damaged or destroyed property.

You must register with FEMA to access funds, such as registering through the FEMA mobile app. A FEMA inspector will schedule an appointment to visit your home.

Ban on insurance cancellations and non-renewals
Florida homeowners won’t have to worry about having their home insurance policies canceled for a couple of months. As a response to Hurricane Ian, Florida Insurance Commissioner David Altmaier has issued an emergency order that will temporarily ban property insurers from dropping customers. Home insurers won’t be able to cancel or non-renew policies until Nov. 28, 2022.

Homeowners who had properties damaged by Hurricane Ian will have some extra protection. Florida insurers are also banned from canceling or non-renewing policies for at least 90 days after properties are repaired.

Florida home insurance is a ‘decline in the racket’

Florida’s population is approaching 22 million and accounts for only 8% of property claims nationwide. But more than three-quarters of all property claims in Florida are lawsuits, many of which lawmakers say are frivolous.

Florida home insurance companies often face a no-win situation when they fight insurance claims in court thanks to the state’s Assignment of Benefits (AOB) law. AOB allows the homeowner to assign their claim to the contractor instead of dealing with the insurer. A contractor may often retain an attorney before speaking with the insurance company.

Florida law states that if the lawyer wins a dollar more than the insurance company offered, the insurance company must pay not only the claim—which the contractor may have inflated—but all legal costs, which can be thousands of dollars for the claim. The original was a few hundred. In one case cited by state representative Bob Rommel, the homeowner received $35,000; The lawyer received $756,000.

Florida Governor Ron DeSantis has said the state’s AOB system has “really degenerated into a racket.”

Florida roofs are the central pain point

Roofing contractors are aggressive in contacting Florida homeowners who may—or may not—have actual roof damage. They can be so aggressive that they put flyers on every doorknob in many neighborhoods, while offering a $500 gift card. The situation got so bad that the state legislature passed legislation, signed by Gov. DeSantis, that prohibited contractors from using “restricted advertisements” to encourage homeowners to file insurance claims for roof damage.

But a federal judge ordered an injunction on the law after a roofing contractor said it violated their First Amendment right to free speech. and other roofing contractors subsequently joined the lawsuit, which has not yet been decided.

A major complaint is that insurance companies are trying to eliminate the threat of paying for a new roof by denying customers with asphalt shingle roofs more than 10 years old.

The legislative action the state is taking could make things worse. “Florida’s insurance market is headed for collapse,” according to a report prepared by the Florida Senate’s Banking and Insurance Committee.

The latest Florida homeowners insurance developments

September 29, 2022: As parts of the state deal with the aftermath of Hurricane Ian, Florida Insurance Commissioner David Altmaier issued an emergency order that will prevent home insurance companies from releasing customers until November 28, 2022.

The measure prevents insurers from abandoning customers whose properties were damaged by Category 4 hurricanes. That provision does not allow cancellation or non-renewal for at least 90 days after the properties are repaired.

Govt. Ron DeSantis says he expects the state’s last resort, Citizens Property Insurance Corp., will have no problem paying storm-related property damage claims. Citizens’ membership has grown to about 1.1 million members as home insurance companies have fled the state or gone out of business.

Sept. 7, 2022: State regulators of last resort, Citizens Property Insurance Corp. is exploring whether to increase the maximum homeowners insurance policy offered by state insurers.

Citizens Property offers replacement-only coverage for homes up to $700,000 in most areas of the state. Miami-Dade and Monroe counties have higher limits.

The potential move comes as thousands of Florida homeowners were forced to seek Citizens Property Policies after losing coverage when their home insurance company stopped offering policies in Florida or went out of business.

August 26, 2022: United Property and Casualty Insurance Company (UPC Insurance) says it has filed withdrawal plans from Florida, Louisiana and Texas. He also wants to withdraw to New York. Withdrawal shall mean that UPC ceases operations.

August 8, 2022: Weston Property & Casualty Insurance has become the fifth homeowner insurance company serving Florida to go out of business this year.

The Florida Office of Insurance Regulation referred the insurer to receivership last week. Demotech, a rating agency, also withdrew Weston Property and Casualty Insurance’s rating from “A” exceptional to “NR”.

Weston’s approximately 20,000 Florida customers have 30 days to find home insurance elsewhere. Florida Insurance Guaranty Association will handle Weston’s outstanding claims.

How to file homeowners insurance with the Florida Insurance Guaranty Association

What happens if your homeowners insurance company enters into liquidation within days of your home being damaged by fire? Here’s how to file a claim with the Florida Homeowners Insurance Guaranty Association.

Write, email, fax or call FIGA about making a homeowners insurance claim.
The association will want to know your insurance policy number and date of loss.
FIGA will generate a claim number, which you should keep handy to use during the claims process.
FIGA will assign an adjuster to handle the claim and review the damages.
The association will process homeowners’ insurance claims and offer payment for damages.

Homeowners Insurance Cost Factors

Several factors can determine your ability to get cheap home insurance in Florida, including:

Age of the house
The material your house is made of
The cost of remodeling the house
Your location’s fire rating
Your location claim history
Your personal claims history
Coverage limits and deductibles
Your credit

What does homeowners insurance cover?

A standard home insurance policy (designated as HO-3) covers your home for any mishaps that are not excluded in the policy. Common exclusions include sinkholes, power failure, neglect or wear and tear, nuclear hazards, pest and insect infestation, and willful damage.

Your personal property is covered for certain identified “perils” in a standard Homeowners insurance policy. Theft, vandalism, tornado, fire or lightning and smoke are some of the problems covered by home insurance.

A standard home insurance policy consists of these main coverage types:

Dwelling: This part of the policy pays for repairs or reconstruction if your home is damaged. It also covers attached structures such as a deck or garage.
Other Structures: This pays to repair or replace structures not attached to your home, such as a fence, shed or in-ground swimming pool.
Personal Property: This pays to repair or replace your belongings after an incident such as fire or theft. Your personal property includes things like your clothing, jewelry, furniture, appliances, rugs, and other household items.
Liability: This pays for property damage and injuries that you or other household members accidentally cause to others. For example, if you let your dog out without a leash and it bites a passerby, your liability Homeowners insurance may pay you a settlement or court judgment—and legal defense costs—if the person files a lawsuit.
Medical payments to others: This covers minor medical claims made by someone not in your family, regardless of who is at fault for the injury. For example, if a friend trips on loose carpet and sprains their ankle, medical payments coverage can pay for the medical care they receive. The amount of coverage is usually small, such as $1,000.
Additional living expenses: If you are unable to live in your home due to an event covered by your policy (such as a fire or tornado), additional living expense coverage can reimburse you for money spent on restaurant meals, hotel rooms, and other necessary services. is . , such as a pet boarding facility.

Most Common Disasters in Florida

The sunny skies of the Sunshine State can, on occasion, be darkened by various calamities. Florida has seen its fair share of severe hurricanes but has been hit harder by hurricanes and fires.

Florida has seen 45 public disasters caused by large natural disasters in the past 65-plus years. The 2020 hurricane season saw a record-breaking 30 named storms and 21 hurricanes by December 2021. While Florida has been spared any major hurricane damage in the past few years, homeowners need to be prepared.

When purchasing home insurance in Florida, be aware of special hurricane deductibles. It is usually percentage-based and is calculated based on the amount of coverage you have for your residence. For example, if your coverage is $300,000 and your deductible is 5%, that equals $15,000.

And while hurricanes are known in Florida, there have actually been more fires declared disasters over the years. For example, in May 2020, the Five Mile Swamp Fire burned for five days due to extremely dry conditions. It caused a two-day closure of Interstate 10, burned about 2,300 acres and destroyed 14 homes.

Flood Insurance in Florida

A standard homeowners insurance policy does not cover flood damage. And since flooding is becoming more frequent, especially with severe storms hitting Florida, you may want to consider flood Homeowners insurance.

Florida is no stranger to back-to-back hurricanes or hurricanes that can quickly dump a lot of rain, causing major flooding problems. In November 2020, Hurricane Ita hit parts of Miami-Dade County in South Florida with 16 inches of rain. It flooded urban areas including businesses and neighborhoods.

Many areas in the US experience catastrophic and costly flooding, but these events are not declared federal disasters. Here’s a look at recent flood numbers in Florida.

Financial assistance from the government may be limited after a flood. It is best to have your own flood Homeowners insurance to rely on. Most people who have flood insurance buy it through the National Flood Insurance Program (NFIP), a federal program. Private flood insurance is also available.

If you qualify, FEMA’s Individuals and Households Program (IHP) can provide financial and direct assistance after a major disaster or emergency. This program helps people find housing after a problem caused directly by a disaster that is not covered by insurance or other sources.

Methodology

Average Homeowners insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with dwelling coverage of $300,000 and liability coverage of $100,000.