It's not much of a secret that insuring a home in Florida can be a very pricey endeavor. In Florida, we pay among the highest premiums in the US. (the good news is that there's a fix in the works for that, but that's a different post.) So, what can you do, other than just taking it in the teeth? Well, I have a couple of suggestions you might try to bring down your premium.
1) Get a wind mitigation inspection.
A wind mitigation inspection will document wind resistive features of your home. This might be hurricane clips or wraps, opening protection, or other protective features. There are several good inspectors in our area, and the typical charge is in the $100 to $150 range. Usually, you can get this done in just a few days, and any savings will apply to your current policy and to future terms, as well, so it's a gift that keeps on giving. If you have a relatively new home, the benefit will be less because you are likely already getting most of the credits that would be noted on the inspection, and older homes will benefit the most. These inspections are especially effective if your home is built prior to about 2002.
2) Consider adjusting your deductible.
On a homeowners insurance policy, you'll usually have two different deductibles. One will be a wind deductible. (There are different "flavors" of this . . . some may only apply to a "hurricane" or a "named storm", but most of the time it will be for any wind damage.) This deductible may be a flat dollar amount, but more commonly it's a percentage of your home value, with 2% being the most common. In this case, if your dwelling coverage amount is $300,000 your wind deductible would be $6,000, which is 2% of that amount. The other deductible is what we call the AOP or "all other periols" deductible, and it applies to other covered losses than wind (such as fire, for example). This is almost always a flat amount, and common ones are $500, $1,000 and $2,500. Ask your agent to give you a range of options for these two deductibles, and if making a change provides some solid savings, get them to make the change on your policy. So, if you can budget for a $2,500 loss, there's no sense in having a $500 deductible. Take the savings that goes with the higher deductible.
3) Check the coverage details.
Generally, I'd advise against reducing your dwelling coverage, which is shown as "Coverage A" on your policy. Building costs are pretty high, and it's even worse after a big storm, as we saw after Michael. But dig into the details with your agent. For example, coverage for "other structures" is usually included at 10% of the dwelling amount. If you have no otehr strucutres like a shed, fence, or detached garage, you might be safe eliminating this coverage and getting a premium break. Take the time to walk through the details with your agent to look for coverage adjustments.
4) Go shopping.
I freely admit that things are tough in insurance right now, and shopping may not help since there aren't too many options out there right now. Still, it never hurts to ask your agent if they can look around for you, or even give another agent a shot at it. I will say that if the premium savings from a move is nominal, I'd sit tight, because there's extra benefit to stability right now, and changing companies may involve new inspections and other things that might not be obvious up front.
