Why Does Florida Homeowners Insurance Cost So Much?

Florida is one of the most expensive states when it comes to home insurance. Most residents pay over $2,240 per year. In contrast, the average price of homeowners insurance in the US is just $1,820. So, why is insurance so expensive in this state, and what can you do to lower your quote?

Why Does Florida Homeowners Insurance Cost So Much? 

The main reasons why Florida home insurance costs so much are that there are more natural disasters than in other states, and insurance fraud is very common. Homeowners’ quotes are also subject to change when reinsurance costs fluctuate. In recent years, they have increased because there have been so many storms.

Many Catastrophic Claims 

Florida insurance companies have to charge enough to cover the cost of all claims. The fact that there are many floods and hurricanes in this state is one of the biggest reasons why insurance costs so much. Unfortunately, the situation is unlikely to improve in the future: after all, Florida has a long history of storms and lies in the natural path of hurricanes.

Insurance Fraud 

In recent years, local insurers have often been the victims of fraudulent claims. Contractors contact homeowners and tell them that someone else in the neighborhood has been able to get a free roof. Then, they inspect the person’s roof and cause damage or inflate the cost of repairs.

The resulting litigation costs make insurance more expensive for everyone in the area. Recently, new anti-fraud laws have been passed. Hopefully, they will address this issue and take some of the pressure off insurers.

Home insurance is extremely expensive in Florida because several natural disasters occur in this state each year. Recently, fraudulent claims have cost many insurance companies millions of dollars, so the cost of home insurance has risen further. The best way to get a reasonable quote is to work with a full-service independent agency. Contact us at DTRT Insurance to find the cheapest providers in your area.