Florida Homeowners Insurance Companies Charge different Premiums for Homes of the Same Value and Location

02 May
Different home insurance rates

Insurers use different parameters to rate risk and this can result in wildly different premium quotes for the same home in the same area as this study demonstrates pretty dramatically.

Gavop, a real estate, housing news, and research service recently examined the latest information being released from the Florida Office of Insurance Regulation and found that insurers across the state (but especially in the Miami-Dade area) are charging drastically different premiums for homes that fall into the same value range and location.

In the Miami-Dade area, which was the primary focus of the study, the data showed that when insuring a 28-year old masonry home worth $128,000 with a $500 deductible, the premiums ranged from a high of $9,052 from American Integrity Insurance down to $1,544 from Florida Farm Bureau Casualty. In between the high and low premiums were Universal Insurance Co. ($4,542), and First Protective Insurance Co at $4,197.

The study found the same differences in Broward and Palm Beach County, which are the next most populated areas in the state. In Broward, the highest premium for a home with the same parameters as the Miami Dade area came in at $7,907 with Auto Club Insurance Company of Florida writing the policy. The lowest premium was from Florida Farm Bureau Casualty Insurance Company at $1,382.

Shop Your Coverage

This study shows exactly why it is important to shop your coverage on a regular basis. Insurers use different parameters to rate risk and this can result in wildly different premium quotes for the same home in the same area as this study demonstrates pretty dramatically.

It should also be noted that your personal risk factors could also impact your premium. Insurers look at your claim history, credit score as well as your family pets to determine a premium, the more factors you score well on, the lower your premium.

Most industry experts recommend shopping your insurance coverage on a yearly basis. Gather at least five quotes (10 is better) and make sure you are comparing apples to apples when it comes to coverage levels and deductibles. At HomeInsuranceKing.com, our quoting process includes up to 12 competitive quotes and enhanced coverage options. Shop online now for great Florida Home Insurance Rates!

While pricing is always important, it shouldn’t be the only factor you consider. A cheap policy will quickly become worthless if you have trouble filing a claim or getting ahold of a customer service rep.

Investigate all of the insurers you are considering to make sure they are financially solid and are well reviewed by their current customers.

Lower Your Premium Even Further

Shopping your coverage is just the start when it comes to lowering your premium. Once you find an affordable policy there are a few things you can do to lower your insurance costs even lower.

Discounts: Insurance companies offer a variety of different home insurance discounts and your goal is to get as many different discounts as possible. Here are just a few of the more common discounts:

  • Bundling: Purchasing all of your insurance products from the same insurance company can result in a discount of up to 25 percent or more. Purchase your auto, life, and homeowners insurance from the same company to shave a significant amount off of your premium.
  • Alarms: Adding a monitored alarm system will also lower your premium as will smoke and carbon monoxide detectors. A sprinkler system can result in a significant discount although they can be fairly pricey to install.
  • Storm Shutters: If you live in storm prone area consider adding storm shutters or using wind resistant materials on your roof, both can result in a fairly significant discount.

Raise Your Deductible: If you can afford to raise your deductible, it will absolutely lower your premium. Doubling your deductible can result in significant savings but make sure that you can easily afford the deductible in the event you have to make a claim.

Maintain Your Credit Score: Your credit score has a major impact on your insurance premium so do whatever you can to maintain a decent score. If your score is somewhat disappointing, take steps to improve it such as paying down debt and paying off balances on a monthly basis if possible.

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