6 Ways to Reduce Your Florida Home Insurance Rates

Ever feel like you pay too much for your insurance? Check out these common strategies to reduce premiums while retaining excellent coverage.

1. Newer is better: A new home is statistically less likely to incur a claim. Insurance companies recognize this and to incentivize new home business they lower their rates accordingly. After a certain age (30-40 years) the difference is minimal. Homes built 2002 and newer specifically receive the best rates thanks to the 2001 Florida Building Code changes.
2. Know your inspections: After a home hits 30 years old most carriers begin requiring a Four Point Inspection to be eligible. Homes built 2001 or older may also receive reduced premiums from a Wind Loss Mitigation Report. This informs the insurance company how wind resistant the roof and windows are.
3. Roof shape is for more than aesthetics: A hip roof (slopes down on each side) allows wind to roll over and is less likely to be damaged in heavy winds. Look for at least 90% hip roof line if you want to save upwards of 20% each year. Hip vs Gable Roof
4. Stick to concrete when possible: The three little pigs were on to something. Frame homes are generally rated higher than concrete construction homes since they are most susceptible to fire and other types of damage.
5. Who is buying: An individual or couple with good credit will usually get the best rates available. The next best option is a family owned LLC used exclusively for real estate investment. This limits your options but typically is not inherently more expensive. If you utilize an S Corp, C Corp or Limited Partnership you will need a separate commercial liability policy that can easily increase costs by as much as $500/year per home.
6. Make your insurance agent part of your team: You have one financial advisor, one attorney and one realtor so why have a different insurance agent for each home? Having the right agent on your team can help guide you to the right home and make sure you receive proper coverage at the best rates.