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The cost of homeowner insurance does not have to prevent you from buying your new home. Buyers are finding workarounds to the current market: On average, Florida homeowners are paying $2,385 a year, or about $199 a month, according to NerdWallet. South Florida is seeing higher pricing, with Miami paying an average annual rate of $4,740, in Fort Lauderdale it was $3,985 and in Boca Raton it was $2,945, as of September.
But buyers are out there. Here is what my real estate clients are doing and what I’m hearing from the general market about how they are achieving savings:
New Law Discounts: Florida’s HB 799 requires insurers allow for more mitigation discounts that help shrink the potential for windstorm losses. Ask your agent about savings from the new law.
Reinforcement: Ask the seller to detail any storm-related upgrades already made to the home, work with your broker to explore additional fixes that might help bring insurance costs down and nail down the cost. It could be a tax write-off and might reduce your insurance premium.
Remove Extra Costs: It might surprise you to learn that your insurance covers things like fences and more stuff outside the house. Your agent is happy to walk you through a new policy and discuss how past storm and flooding history might impact the premium.
Deductible Adjustment: Consider raising your deductible in combination with a savings account you create for yourself to cover unexpected impacts from a hurricane or storm.
Insurance Bundling: You’ve probably seen the commercials on TV about bundling your homeowner’s and car insurance, which in some cases can save you as much as 15 percent. Bundling can definitely help to save your money.
Stick With Them: If you are selling a home before buying or have a business, explore using your existing insurer. The longer you are with the agency, the more eligible you are for discounts that otherwise might not be available. Give them more of your business and they will look to reward you by saving you money.
Explore these possible savings before buying. It can make a world of difference when buying your dream home.
Author: Lucas Boccheciampe is Broker Founder of Key Biscayne-based Vantage Luxury Real Estate, with listings of up to $20 million and opportunities in Miami’s hottest real estate submarkets including Key Biscayne, Bay Point, Brickell, Coconut Grove, Gables Estates and Pinecrest. Contact him at lucas@vantageluxuryre.com or 305-495-3865.
