Is Homeowners Insurance Mandatory in Florida?

Your home is likely the largest investment you will ever make, so it makes sense to have an insurance policy to cover flooding, hurricanes, electrical fires, and other incidentals. However, Florida homeowners may not be required to have insurance. Are there other reasons why it’s a good idea to have homeowners insurance?

Is Homeowners Insurance Mandatory in Florida?

Unlike many other states, homeowners in Florida are not required to have home insurance coverage because no law mandates insurance for homes in the Sunshine State. However, just because having insurance for your home is optional doesn’t mean you should overlook the importance of having an insurance policy. Insurance for your home is a good way to protect yourself from financial pitfalls so you aren’t paying for repairs out-of-pocket.

Why You Might Need Insurance Anyway

Although Florida doesn’t legally require homeowners to have insurance, your mortgage lender may have a different opinion. Many banks and mortgage lenders require insurance on the home as a condition of your mortgage agreement. This ultimately protects you as a homeowner and your mortgage lender in case of crisis.

How Much Is Insurance Each Year?

In Florida, the average homeowner will pay about $1,300 a year for insurance. Much of the time, your insurance policy will be part of your monthly mortgage payment, and your mortgage company will pay for your insurance policy on your behalf.

Although homeowners in Florida are not legally obligated to have an insurance policy, some mortgage lenders may make insurance a condition of your mortgage. An insurance policy for your home will cover natural disasters, property damage, and the loss of personal belongings, so it’s a good asset to have on your side to protect your finances. To learn more about insurance requirements for homeowners in Florida, get in touch with DTRT Insurance Group.