COVID-19 Update: If you're thinking about home insurance in the context of coronavirus, see below for information on how it affects Florida homeowners.
We found that the best homeowners insurance rates in Florida are $519 per year. However, we recommend that homeowners also compare the quality of service and coverage options that different companies provide. We took a close look at those factors to identify a handful of home insurers who offer the best coverage in the Sunshine State.
Best for most people: State Farm
State Farm is our overall favorite for home insurance in Florida and the one we recommend for most homeowners. At an average price of only $710 per year, State Farm was 58% less expensive than the average Florida insurer statewide. The company also has strong customer service, with fewer registered complaints than most competitors.
State Farm is also a national insurer with unsurpassed financial strength. It has a maximum rating of "A++" from A.M. Best, indicating an ability to pay out insurance claims regardless of economic changes or widespread disaster. State Farm's large scale also enables it to spread its risk across the country.
This means that even if a hurricane inflicts billions of dollars in damage on Florida homes, State Farm's business as a whole will be able to absorb the sudden increase in claims. State Farm is also a good choice if you're looking for a one-stop shop for insurance. Besides homeowners insurance, State Farm also sells a broad set of other policies and financial products in Florida:
- Auto insurance
- Renters insurance
- Flood insurance
- Life insurance
- Health insurance
- Checking accounts
- Savings accounts
Best for hurricane-related coverage: UPC
If you need a company that has specific expertise in insuring coastal property, we recommend United Property and Casualty (UPC). UPC specializes in policies for homes located near the ocean. The company's upper-tier packages include coverage for water backup and refrigerated contents, two common consequences of major storms.
UPC also provides options for insuring your home against flooding, which a standard home insurance policy won't cover. While most Florida home insurers only sell government-sponsored NFIP flood insurance, UPC also offers private flood insurance by NFS Edge. Private flood policies aren't defined by the government, which can mean lower premiums or more coverage than an NFIP policy.
With an average annual premium of $1,359, UPC also has cheaper-than-average rates among Florida insurers. On the other hand, it also had more complaints filed against it with the FL Office of Insurance Regulation (FLOIR) than the statewide average, suggesting more people were unhappy with UPC's handling of claims or other services.
Best for lowest rates: Security First
For Florida homeowners focused on the lowest possible rates for homeowners insurance, we recommend Security First and its average premium of $519 per year. This was less than one-third of the average rate we calculated statewide, beating the second-best rate of $209 at State Farm.
However, Security First doesn't offer much else besides the low rate. It doesn't include any coverages beyond the basics you'd find at any home insurance company. In addition, the company's customer service record is below average: Security First had 33% more complaints registered with the FLOIR than the average Florida home insurance company.
Best for high-value homes: Chubb
Owners of high-value homes in Florida should start with Chubb insurance, which is well-known for its impeccable customer service and premium coverages such as extended replacement cost — which pays the cost to repair or replace an item if its replacement cost increases beyond normal. For example, extended replacement cost coverage may pay for extra labor costs if there's a labor shortage after a major disaster.
Other unique benefits with Chubb include its cash settlement option, which gives you the option of taking an all-cash settlement in case of a covered total loss. This provides the freedom to walk away from a destroyed property without needing to rebuild. Chubb also provides complimentary home appraisals and advice to secure your home against fire or theft.
Chubb customers usually pay higher premiums than average, but we found that the company's rate for each dollar of coverage was actually 26% cheaper on our sample home. However, Chubb's high minimum coverage requirements mean that it's only available to insure more expensive properties.
The best-reviewed home insurance companies in Florida
When considering an insurance company to protect your home, it's important to look beyond quoted prices to other factors like customer service and financial stability. An affordable insurance company may not be worthwhile if it ends up providing careless service or undervaluing your claim.
To investigate these factors, we collected Florida-specific and nationwide complaint scores which show how the most popular insurers stack up both nationally and compared to other companies in the state. Note that homeowners insurance complaints happen much more frequently in Florida than in other states, so companies that operate nationwide may have a disproportionately low NAIC complaint ratio.
|Rank||Insurer||NAIC complaint ratio||FLOIR complaint index||Demotech rating||A.M. Best rating|
|1||Universal Property and Casualty||8.63||1.26||A (exceptional)||--|
|3||Tower Hill||4.5||0.95||A (exceptional)||A-|
|6||Heritage Property Insurance||6.37||1.13||A (exceptional)||--|
|8||UPC Insurance||7.05||1.84||A (exceptional)||--|
The cheapest home insurance companies in Florida
We surveyed 14 of the largest homeowners insurance companies in Florida in order to find the companies with the best rates. In our research, we collected quotes for a home with $214,000 of dwelling coverage — the median value of an owner-occupied home in Florida — for every ZIP code in the state.
We found a surprising range of premiums. The cheapest Florida home insurance companies offered rates well under $1,000 per year — $519 at Security First and $710 at State Farm.
On the other hand, some insurers were drastically more expensive. Citizens Property, a government-run nonprofit that provides insurance to people who can't get coverage on the private market, charges a staggering $5,144 per year — more than double the statewide average and about five times more than the cheapest option.
What risks do homeowners face in Florida?
Florida's position on the Gulf Coast leaves it vulnerable to several major insurance perils, resulting in the highest homeowners insurance costs in the nation. Here are the most common and expensive perils to look out for when buying home insurance.
High winds caused by storms and hurricanes are one of the most frequent and costly causes of property damage in Florida. Fortunately, wind damage is almost always covered by homeowners insurance, regardless of what type of policy you have. The only exception is that some coastal homes that are especially susceptible to wind damage may need to purchase a special wind endorsement.
The good news is that state law requires insurers to offer discounts for homeowners who purchase and pass a wind mitigation inspection. This inspection is entirely optional, but the resulting discounts on your home insurance can easily make up for the upfront cost if you pass. If you don't, it's a good way to identify where you can invest to reduce your home's risk of storm damage.
Besides wind, flooding and other water damage is one of the most common perils Florida homeowners face. Unfortunately, water damage due to rain and flooding is usually not covered by homeowners insurance policies. If you live in an area with a high risk of flooding, such as at a low elevation or near the coast, we strongly recommend that you purchase flood insurance. Depending on where you live, it may even be a requirement in order to qualify for certain types of home loan.
Coronavirus and homeowners insurance in Florida
As of now, the coronavirus (also called COVID-19) hasn't had as big of an impact on homeowners insurance as it has on health and automobile insurance. Some insurers may be waiving late fees or giving you more time to pay your home insurance bill. If you need to file a claim, you may experience delays as companies adjust to a remote working system. It's also likely you won't have an adjuster visit in-person; instead, you might make a virtual claim over the phone or online.
Florida insurance resources for coronavirus:
Cost of Florida insurance: City-by-city breakdown
In addition to our analysis of every ZIP code in the state, we also looked at the cost of home insurance for the 54 cities in the state with populations over 50,000 people. Each city's rate is based on the average of every standard (non-P.O. box) ZIP code located in that city. Rates are based on a home insured for $214,000 and built in 1987.
|City||Average cost||% Difference from statewide average|
|Palm Beach Gardens||$2,140||23%|
|Port St. Lucie||$1,696||-2%|
|West Palm Beach||$2,096||21%|
Who has the cheapest home insurance?
Security First had the lowest rates for homeowners insurance in Florida, with an annual quote of $519 for our sample profile. However, your location and the characteristics of your property may result in better rates at a different insurance company.
How do I get cheap home insurance?
There are two main methods that can help you lower your home insurance costs. The first is to shop around like you would with any other purchase, comparing quotes from multiple insurers in order to find the best rate. The second is to adjust your policy by lowering your coverage limits or raising your deductible, which makes your policy less effective but also less expensive.
Can you negotiate homeowners insurance rates?
It is possible to negotiate with an insurance provider, but in most cases this requires an insurance agent who has the necessary context and knowledge to negotiate effectively on your behalf. Negotiating is also much easier if you've already collected quotes from multiple sources, so that you have some basis for requesting a different price.
For our statewide study, we collected insurance quotes from 14 of the largest home insurance providers in the state of Florida. Those insurers were:
- Universal Property and Casualty
- State Farm
- Tower Hill
- Citizens Property
- Heritage Property Insurance
- UPC Insurance
- Security First
- Florida Peninsula Insurance
- Homeowners Choice
- St. Johns
- American Integrity Insurance
For each insurer, we collected a quote for a sample house in every ZIP code in the state, providing a comprehensive look at insurance costs statewide. Our sample policy was for a 2,100 square foot home with $214,000 of dwelling coverage built in 1987.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.