Factors that increase home insurance and how to mitigate their impact. Home insurance in Florida faces numerous challenges that contribute to rising premiums beyond issues related to fraud and claims. Experts point out that several factors, often beyond our control, significantly impact the cost of insurance in the state.
One of the most prominent factors is the increasing cost of repairing or replacing home damages, which has risen an astonishing 55% between 2019 and 2022. This directly translates to higher premiums for homeowners.
Additionally, insurers in Florida rely heavily on reinsurance, the costs of which have increased by an average of 27% this year due to storm claims.
Climate change also plays a significant role in Florida’s homeowner insurance landscape by generating more intense hurricanes while warming the waters of the Gulf of Mexico increases losses from hail, tornadoes, and wind. These are all factors contributing to the rise in premiums.
We must recognize that the continual increase in home values directly impacts the cost of insuring them. The factors above are external and make reducing homeowner insurance rates in the Sunshine State challenging.
Despite these uncontrollable circumstances, there are measures homeowners can implement to reduce their insurance premiums, as we outline below:
- Increase the deductible: Raising the deductible in your insurance policy can reduce the monthly premium, although it involves assuming more costs in the event of a claim.
- Home security improvements: Installing security systems such as cameras, alarms, smoke detectors, and safes can reduce the perceived risk by insurers, often resulting in lower premiums.
- Enhance home protection: Adding impact-resistant windows and doors can mitigate damage, likely resulting in more affordable premiums.
- Maintain a good credit history: Insurers consider your credit history when determining premium prices, so keeping it in good standing can positively impact insurance costs.
As you can see, it’s not impossible to lower your home insurance premiums despite the many factors that influence their increase. However, since each case is unique, contacting a specialized home insurance agent at Univista Insurance is best. They will help you get the most out of your policy’s benefits and find ways to reduce your monthly payments. Factors that increase home insurance and how to mitigate their impact.