If your homeowners renewal came in higher than last year, you are not alone. Florida home insurance prices have climbed for several years, and a coastal county like Nassau feels it more than most. You cannot control the market, but you can usually control more of your own premium than the renewal notice suggests.
Why Florida premiums keep rising
A few things drive most increases:
- Hurricane risk. Insurers pay a lot to protect themselves against a major storm, and that cost is built into every Florida policy.
- Rebuilding costs. Labor and materials cost more than they did a few years ago, so the amount needed to rebuild your home goes up, and the premium follows.
- Your home's details. Roof age, the year the plumbing and electrical were updated, and your claims history all affect what a company charges.
Seven ways to lower your premium
- Get a current wind mitigation inspectionFlorida insurers must offer credits for features that help a home stand up to wind, such as roof-to-wall connections, the way the roof deck is attached and opening protection like hurricane shutters. A wind mitigation inspection documents those features, and the credits can be significant. If your report is old or was never sent to your company, this is often the quickest win.
- Look at your hurricane deductibleMost Florida policies have a separate hurricane deductible, usually set as a percentage of your dwelling coverage, such as 2%, 5% or 10%. A higher percentage lowers the premium, but it means paying more yourself after a storm. Choose a number you could actually cover from savings.
- Raise your other deductibleThe all-other-perils deductible applies to things like a kitchen fire or a burst pipe. Moving from $1,000 to $2,500 can save money every year if you rarely file small claims.
- Make sure your dwelling coverage is rightCoverage should match the cost to rebuild your home, not its market value or what you paid for it. Too little leaves you short after a total loss, and too much means paying for coverage you could never use. It is worth a review, but cutting coverage just to lower the price is rarely a good trade.
- Update the roof, and tell your company when you doRoof age is one of the biggest factors in Florida pricing. A newer roof can lower your premium and open the door to more insurance companies. After a replacement, send your company the permit and completion date so the new roof is on file.
- Ask about every discountCommon ones include a monitored burglar and fire alarm, water leak detection or automatic shutoff, a gated community, being claims-free, and putting your home and auto with the same company. Not every company offers all of them, so ask which apply to you.
- Compare companiesPrices for the same home can vary widely from one company to the next, and the cheapest company last year is not always the cheapest this year. An independent agent can quote several companies at once and compare the coverage line by line, not just the price.
What not to do
Do not let a policy lapse while you shop. A gap in coverage can cause problems with your mortgage lender and make future coverage harder to get and more expensive. Keep your current policy in force until a new one is confirmed. And remember that a homeowners policy does not cover flooding, so dropping flood insurance to save money can be a costly mistake on Amelia Island.
Get a second opinion on your renewal
Southend Insurance compares coverage and pricing from multiple insurance companies for homes in Fernandina Beach, Amelia Island, Yulee and the rest of Nassau County. Email your renewal or declarations page to trey@southendins.com, call (904) 807-4554 or request a quote online, and we will look for savings before your renewal date.
This article is general information, not a substitute for your policy documents. Discounts, deductible options and eligibility vary by insurance company.