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Florida is the Most Expensive State in America for Property Insurance

Florida is the Most Expensive State in America for Property Insurance

florida home insuranceFlorida is well known as one of the sunniest states in the country; it is also the home of the highest homeowner insurance rates. Those who are new to this state will be surprised at the substantial difference in prices of coverage for property. The number one reason behind the sky rocketed insurance rates is because of the state having so much coastal real estate. The risk for natural disasters from hurricanes and tropical storms is higher than in any other state.

At this time during 2016, the typical homeowner policy in Florida is double the national average. The county your property resides in will help dramatically with cost. Leon County provides the lowest rates, for example, because of its center-of-state location.

Properties located in the southern half of the state that are closer to the ocean have the highest average insurance policy rates. Counties include Monroe and Miami-Dade. The history of these counties is filled with a lot of natural disasters, dramatically increasing the total cost for coverage.

It’s very important to obtain home insurance in Florida that is going to provide you with adequate protection without being too much of a financial burden. Although there is no such thing as cheap homeowners insurance in Florida, there still exist companies that provide inadequate customer service and an unreliable ability to pay claims. Conducting your own due diligence check on insurance companies will prevent any unpleasant experiences when it comes time to file a claim. It’s vital to understand that some companies that review insurance companies may not be telling the truth, thus it’s important to use multiple resources when performing research.

Homeowners Insurance Florida Rates the most in America

Although the state has not experienced a major catastrophe in over 10 years, rates continue to increase. Industry groups have stated the problem derives from abuse from assignment of benefit lawsuits. When property damage in Florida is reported such as a fire, and it’s covered under an insurance policy, a company will come out to repair or replace the damages. However, it’s during this time that companies are hiring third party companies to do the work on their behalf; the insurer will sign an assignment of benefit agreement that will allow the third party company to sue the insurance company for payment. It’s these types of practices in such huge numbers that are to blame for the outrageous increase in homeowner’s insurance rates every year. Throughout the years there has been a push for a change in legislation, without any success as of yet.

It’s unfortunate that this sunny state that has not experienced a hurricane in over a decade continues to have an increase in insurance policy rates with the new catastrophe known as abuse of agreement of benefits. There still exists affordable coverage for those in the market, though, and with our knowledgeable tips it can be acquired. Your house is the biggest investment money can buy, so it’s very important to spend the necessary amount of time finding the best coverage for it.

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