Finding affordable property insurance in Florida is seldom easy. There is good reason for this, of course. According to a recent report, about 40 percent of U.S. hurricanes pass through the Sunshine State on an annual basis. Furthermore, over 80 percent of the most violent storms, those with a category 4 rating or more hit Florida or Texas. These hurricanes typically cause billions of dollars in damage, which makes it almost impossible for insurance providers to offer affordable coverage. Just about every Floridian experienced a significant increase in monthly premiums after hurricane Wilma struck in 2005. The storm was responsible for 26 deaths and over 20 billion dollars in damage, most of it in the South Florida area. When a storm like that strikes, millions of homeowner’s file insurance claims to help them pay for repairs. If the insurance provider has enough money to pay off all the claims they receive, they must invariably raise rates to cover losses.
How to shop for insurance in Florida
For obvious reasons, it is not at all uncommon for insurance providers in the Sunshine State to file for bankruptcy protection. It is for this reason that it often best to purchase a policy with a large insurer. Sure, their service may not be as good, but you can at least be confident that they will withstand major disasters without going belly-up. At present, the three largest providers of homeowner’s insurance in Florida are State Farm, Universal Property and Casualty, and Citizen’s. The cost of coverage depends on where you reside and value and age of your abode. Of course, the most important consideration is to make certain that your home is fully covered from all storm damage. It is important to note that property insurance will not protect your home from inundation, unless you live in a flood zone. If you do not, you will most likely have to purchase a separate flood insurance policy from your provider.