Increasing Florida Home Insurance Rates will start in 2021

14 Jan

Homeowners in Florida can look forward to yet another year of insurance increases in the Sunshine State according to a new Value Penguin article. Insurers have already started filing rate increase requests for 2021. Allstate has requested a 13.8 percent rate increase for the new year and other insurers are sure to follow shortly. 

Florida homeowners have already seen their costs skyrocket over the years, since 2016, the average costs of homeowners insurance has gone up 32.5 percent in Florida compared to an average increase of 10.9 percent across the country. 

Some insurers have gone well beyond the average 32.5 percent increase. Since 2016, premiums at Security First have gone up by more than 183 percent according to the Value Penguin article. This is five times the typical rate increase in Florida. 

Other insurers have managed to keep their rate increases more reasonable and one insurance company has managed to decrease their rates. Universal P&C which is the largest home insurer in the state has only bumped up their rates by 24.6 percent since 2016. State Farm, which is the second largest insurer in Florida managed to decrease their rates by 20.8 percent since 2016. They are the only insurer in the state to actually reduce rates. 

Comparing Florida Rate Increases to Other States

Homeowners in Florida have always paid higher premiums than much of the rest of the country, but recent years have seen some dramatic increases. Florida’s 32.5 percent increase since 2016 is three times higher than the average rate increases seen across the rest of the country. 

According to Value Penguins analysis, Florida has seen the largest increase since 2016 at 32.5 percent. Nebraska came in second with a 27.9 percent increase, Colorado was third at 21.5 percent, California was number four with 20.8 percent and Georgia rounded out the top five at 20.4 percent.  

On the other end of the spectrum, Hawaii residents have actually seen a 2.2 percent decrease in their premiums and homeowner insurance costs in Alaska dropped 1.8 percent since 2016. Rates in Wyoming bumped up a mere 0.5 percent, South Carolina saw a 1.6 percent increase and Wisconsin finished in 5th with a 2.3 percent premium bump. 

Here is the ValuePenguin breakdown by state:

1          Florida            34.5%

2          Nebraska        27.9%

3          Colorado        21.5%

4          California        20.8%

5          Georgia          20.4%

6          South Dakota 20.4%

7          Rhode Island 20.2%

8          Montana         19.6%

9          Virginia           18.4%

10        Texas              17.5%

11        Maryland        17.0%

12        New Mexico   17.0%

13        Illinois             15.6%

14        Oklahoma       15.5%

15        Connecticut    14.6%

16        Utah               14.2%

17        Oregon           13.2%

18        Missouri          12.7%

19        Kansas           12.2%

20        Massachusetts          11.9%

21        Washington    11.9%

22        Idaho  11.7%

23        Delaware        11.2%

24        Iowa    11.1%

25        North Carolina           10.7%

26        Arizona           10.6%

27        Arkansas        9.8%

28        Nevada           9.6%

29        Mississippi     8.1%

30        New York       7.9%

31        Minnesota      7.7%

32        New Hampshire         7.4%

33        Tennessee     7.2%

34        New Jersey    6.8%

35        Maine  6.2%

36        Alabama         6.1%

37        Michigan         6.1%

38        West Virginia 5.7%

39        North Dakota 5.6%

40        Kentucky        5.4%

41        Ohio    5.3%

42        Vermont         5.0%

43        Pennsylvania 4.1%

44        Indiana           3.8%

45        District of Columbia   2.9%

46        Louisiana        2.3%

47        Wisconsin       2.3%

48        South Carolina           1.6%

49        Wyoming        0.5%

50        Alaska -1.7%

51        Hawaii -2.2%

Tips for Lowering Your Premium

Florida homeowners have been paying sky-high homeowners insurance rates for years and it looks like they will be headed up again this year. Here are a few tips to help keep your homeowners insurance in Florida affordable:

Shop your coverage: The best way to lower your rates is to shop your Florida home insurance coverage on a regular basis. Insurers rate risk differently and this can lead to dramatic differences in premium quotes. Always be sure you are comparing apples to apples when it comes to coverage levels and deductibles. To compare rates over the phone, please give us a call at 888-685-4704.

Upgrade your home: This is particularly important in states such as Florida where they experience major storms such as hurricanes. Upgrading your roof to wind resistant materials, installing storm shutters or a sprinkler system can result in major discount on your premium.

Helpful Article: Top 5 Home Improvements That Can Save You Money on Your Home Insurance

Up your deductible: The higher your deductible, the lower your premium. If you can afford to double your deductible you should see major savings on your premium. Always choose a deductible that you can easily afford in case you have to make a claim. 

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