Florida Homeowners are seeing a rise in their insurance this year so I’m going to give you some tips on how to keep your premiums lower.

Homeowners insurance premiums are on the rise in Florida and companies have started filing rate increases for 2021. Allstate, for instance, plans to increase its rates by 13.8% this year. WHAT?????

Now the reason for these rising costs are to keep up with the costs to repair or replace your home due to inflation.  In Florida it’s the susceptibility to hurricanes and the rising rate of insurance fraud claims has added to the increase.

So here are 10 ways to lower your insurance costs.

Shop around

It’ll take you some time to research but it can save you some money. Check consumer guides, insurance agents, companies and online quote services, this will give you a good idea of price ranges and which companies offer lower premiums. Don’t forget to check reviews and go to naic.com to choose an insurer in your state to review their info and any complaints about them. Talk to the insurer, ask questions to get a feel for what type of service they will provide you as their client and ask them what they would do to lower your costs.  If you are in Florida, it might be best to choose a local insurance agent, one that understands the areas better than a big box type insurer that might be out of different state.

Raise your deductible

The higher your deductible the lower your premium.  Most insurance companies recommend at least $500 dollars but if you can afford to raise it to $1,000 you can save up to 25% on your premium and in the long run the money you will save monthly can more than cover the higher deductible if you were to submit a claim. Keep in mind if you live in a natural disaster prone area  your insurance policy may require a separate deductible for certain types of damage, such as wind or flood.

Don’t confuse what you paid for your house with rebuilding costs

The land under your house is not at risk from theft, wind or fire so do not include the value of the land when deciding how much home owners insurance to buy so be sure to deduct the value of the land from the cost to rebuild so you can lower your premium.

Buy your home and auto policies from the same insurer. 

Bundling your home and auto insurance can save you 5 to 15% off your premium but do your research first and make sure the combined premium is lower than buying the insurance separately from different companies.

Make your home more disaster resistant and do updates.

Florida homeowners, find out from your insurance company what steps you can take to make your home more resistant to natural disasters. You may save money if you add hurricane shutters or storm safe windows.

Other updates that can lower your premium is to upgrade your roof, electrical and plumbing systems.

Improve your home security

Adding a security system or even smoke detectors can save you up to 5%

It is one of the simplest upgrades a homeowner can make to reduce your premium. Home security falls under insurance protective device discounts with your insurer and may include everything from door sensors and smoke alarms to more sophisticated systems that automatically notify emergency personnel if a problem arises. The latter can be expensive so if your goal is to just lower your premium be sure to research the cost benefits to install one of these systems.

Seek out Home Insurance Discounts

Retired people this one is for you. Since retired people are home more often, insurers feel they may care for their home more and are less likely to be burglarized, so ask your insurer about the special discounts they offer, because some of these discounts can save you up to 10% on your premium.

Maintain a good credit record.

Your credit score matters to insurers and they use your credit info to price your policy so make sure you continue to protect your credit standing even after you close on your home.

Stay with same insurer

You can save up to 5% if you stick with the same insurer for 3 to 5 years and even more if you remain a policy holder for more than 6 so find out what the benefits are if you stick with your current insurer.

Lastly Consider Home Owners insurance when buying a home

If you are just purchasing a home you can pay lower premiums if you live near a fire hydrant or in a community with a professional fire dept instead of volunteer. Check the age of the plumbing, heating and electrical, if it’s less than 10 years you may save money on your premium. If you buy a concrete block or brick home vs wood frame you can save up to 15% because it’s more likely to withstand a natural disaster, so there is a lot to consider before purchasing a home.

And remember flood insurance is not covered by regular home owners so if you are buying in a flood zone expect to pay even more and I can certainly give you more info in regards to this so feel free to reach out anytime with any questions you might have at (904) 747-0183 or [email protected].

I hope you found this information helpful.  If you are looking to purchase a home and need to connect with a local insurer, I can certainly hook you up. Click here to contact me.

If you are new to the area or just exploring check out my next video Living like a local.

I really appreciate you tuning in and I will catch you on the next one.

About the Author
Kim Devlin
Kim Devlin is Your St Augustine Realtor. A Relocation Specialist serving Northeast Florida, St Johns County and Flagler County. She enjoys sharing real estate tips and local insight on communities and living in St Augustine Florida. Tune in weekly and be sure to subscribe to her monthly newsletter.