Buying a home in Florida is exciting. Palm trees, sunshine, and the joy of owning property in the Sunshine State. But with that excitement comes responsibility. One of the most important steps for first-time homeowners is choosing the right homeowners insurance coverage. Florida is unlike most states when it comes to risk. Hurricanes, flooding, and high insurance rates make it essential to understand what your policy covers and what it leaves out.
What does a standard homeowners policy cover?
Most policies in Florida follow the HO-3 structure, but details can vary. Here’s what the core parts look like:Dwelling Coverage
This protects the structure of your home. In Florida, that means roof, walls, and windows damaged by windstorms, fire, or hail. Example: if a hurricane tears shingles from your roof, dwelling coverage pays for the repair. Keep in mind that hurricane deductibles apply.Personal Property Coverage
This covers belongings such as furniture, clothes, and electronics. If a lightning strike causes a fire that damages your living room, personal property coverage helps replace what you lost. Floridians should ask about replacement cost versus actual cash value.Liability Protection
If someone is injured on your property, liability coverage pays for medical bills and legal defense. Example: if a guest slips on your wet pool deck, this coverage helps protect your savings.Additional Living Expenses (ALE)
Also called “loss of use,” this pays for hotels, meals, and temporary rentals if your home is unlivable. After Hurricane Ian, many Floridians relied on ALE to cover months of rent while repairs were underway.Flood Insurance
Standard policies do not cover flood damage. With Florida’s heavy rains and storm surge, separate flood insurance is essential. FEMA’s NFIP program or private insurers offer these policies. Even inland counties like Alachua have reported flood claims in recent years.Hurricane Deductible
Florida requires percentage-based hurricane deductibles, usually 2–10% of the dwelling limit. Example: if your home is insured for $300,000 and you have a 5% deductible, you must pay the first $15,000 of hurricane damage before coverage starts.Florida vs national insurance costs
Florida homeowners pay an average of $4,200 per year for insurance in 2025. The national average is about $1,700. That means Floridians pay more than double. Rates are driven by hurricane exposure, reinsurance costs, and legal trends. Inland counties often see lower premiums, closer to $2,000–$2,500, while coastal homes can exceed $6,000 annually.How mitigation can lower rates
Homeowners can earn discounts through wind mitigation features such as hurricane shutters, reinforced roofs, or impact-resistant windows. Example: A homeowner in Naples installed a fortified roof system and saw their premium drop by $1,200 annually.Coastal vs inland homeowner examples
Miami Coastal Homeowner: After a 2024 tropical storm, roof damage cost $40,000. With a 5% hurricane deductible on a $500,000 policy, the homeowner paid $25,000 out-of-pocket before coverage began. Higher premiums but greater risk of catastrophic claims. Ocala Inland Homeowner: A house fire unrelated to a storm caused $100,000 in damage. The deductible was only $2,500, and coverage paid the rest. Inland risks often involve fire or theft rather than hurricane damage.Step-by-step guide for first-time Florida homeowners
- Review your lender’s requirements. Most mortgages require proof of homeowners insurance at closing.
- Get quotes from multiple insurers. Florida rates vary widely. Compare at least three options.
- Ask about Citizens Insurance. If no private insurer accepts you, Citizens is the state-backed insurer of last resort.
- Consider flood insurance. Even if you’re not in a flood zone, it’s a smart choice in Florida.
- Work with a GreatFlorida Insurance Agent. Local agents understand Florida’s complex market and can explain your choices in plain language.
- Review yearly. Insurance needs change as laws shift, rates adjust, or you make home improvements.
Florida insurance reforms and Citizens depopulation
Over the last two years, Florida lawmakers passed reforms aimed at reducing litigation and stabilizing rates. These included banning one-way attorney fees, limiting assignment-of-benefits abuse, and streamlining claims. Citizens Insurance, which grew to over 1.3 million policies, is now required to transfer some homeowners back into private companies. This “depopulation” effort is designed to keep Citizens as an insurer of last resort, not a primary market competitor.Looking forward
Homeownership in Florida will always come with higher costs than much of the country. But smart planning, strong mitigation, and guidance from a trusted GreatFlorida Insurance Agent can help you find coverage that protects your investment while keeping costs manageable.FAQs
Q1: What does a standard homeowners policy in Florida cover?
A standard policy covers the dwelling, belongings, liability, and additional living expenses. Flood coverage is not included.
Q2: Why are homeowners insurance rates so high in Florida?
Rates are higher due to hurricane risk, reinsurance costs, and legal expenses. Reforms are helping slow increases but costs remain above average.
Q3: Do I need flood insurance in Florida if I already have homeowners coverage?
Yes. Flooding is excluded from standard policies. Separate flood coverage is available through FEMA or private carriers.
Q4: How can I lower my Florida homeowners insurance premium?
You can lower premiums with wind mitigation upgrades, bundling policies, raising deductibles, and shopping quotes through a GreatFlorida Insurance Agent.
Q5: What is Citizens Insurance and why might I be placed with them?
Citizens is Florida’s state-backed insurer of last resort. You may be placed there if no private company will insure you. Citizens also transfers policies back to private insurers when possible.
