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Lower Your Florida Homeowners Insurance Costs - follow a few simple rules

What do you currently pay for Florida homeowners insurance?

The price you pay can vary by hundreds of dollars; this may depend on the insurance company and the policy you buy. Consider these items when buying Florida home owners insurance.

Shop Around

It'll take some time, but can save you a lot of money. Ask friends, check the Yellow Pages or contact your state insurance department. States often make information available on typical rates charged by major insurers and many states provide the frequency of consumer complaints by company. Rates can vary from city to city. For example, homeowners insurance in Miami, Florida runs much higher than in Tallahassee.

Also check consumer guides, insurance agents, companies and online insurance quote services. This will give you an idea of price ranges and tell you which companies have the lowest prices. But don't consider price alone.

Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent. Remember, if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage.

If you live near the coast in the East like Florida, you may have a separate windstorm deductible; if you live in a state vulnerable to hail storms, you may have a separate deductible for hail; and if you live in an earthquake-prone area, your earthquake policy has a deductible.

Don’t confuse your house cost with rebuilding costs

The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.

Buy your home and auto policies from the same insurer

Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies.

Make your home more disaster resistant

Ask your insurance agent what steps you can take to make your home more resistant to windstorms, hurricanes, earthquakes and other natural disasters. By adding storm shutters, reinforcing your roof or buying stronger roofing materials you may be able to reduce your premiums.

Improve your home security

Adding a smoke detector, burglar alarm or dead-bolt locks may earn you discount of at least 5 percent. Installing a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations could cut premiums by 15-20 percent.

These systems aren't cheap and not every system qualifies for a discount. Before you install a system, find out what kind your insurer recommends, how much the device would cost and how much you'd save on premiums.

Ask about other discounts

If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies. Companies offer several types of discounts, but they don't all offer the same discount or the same amount of discount in all states. For example, retired people also have more time for maintaining their homes. Since retired people stay at home more than working people they are less likely to be burglarized and may spot fires sooner, too.

Maintain a good credit record

It’s no secret insurers use credit information to price homeowners insurance policies. Establishing a solid credit history can cut your insurance costs. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

Stay with the same insurance company

You may receive a special discount for being a long-term policyholder. Staying with a company for 3 – 5 years may qualify you for a 5 percent premium reduction and as much as 10 percent if you remain a policyholder for six years or more. Review the limits in your policy and the value of your possessions at least once a year.

Don't spend money for coverage you don't need. You want your policy to cover any major purchases or additions to your home. If your five-year-old home entertainment system isn’t worth the $5,000 you paid for it - reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners policies such as expensive jewelry, high-end computers and valuable art work) and pocket the difference.

Look for private insurance if you are in a government plan

If you live in a high-risk area like Miami, Florida that’s vulnerable to coastal storms your homeowners insurance may only be available through a government plan. Check with an insurance agent or company representative or contact your state department of insurance. You may find you can buy insurance at a lower price in the private market.

When you’re buying a home, consider the cost of homeowners insurance

Buying close to a fire hydrant or in a community with a professional rather than a volunteer fire department may lower cost. Rate on a newer home – less than 10 years - may also be lower since the home’s electrical, heating and plumbing systems are current. If you live in the East, consider a brick home because it's more wind resistant. If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster. Choosing wisely could cut your premiums by 5 to 15 percent.

If you have questions about insurance for any of your possessions, ask your agent, company representative or online source when you're shopping around for a policy. For example, if you run a business out of your home, be sure to discuss coverage for that business. Most homeowners policies cover business equipment in the home, but only up to $2,500 and they offer no business liability insurance. Although you want to lower your homeowners insurance cost, you also want to make certain you have all the coverage you need.

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