Oct 21, 2024
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
M. Friedman has paid for property insurance on his Coral Gables home for 17 years — but he’s now debating whether it’s still worth it in the face of rising insurance costs across Florida.
"We're getting to a point now where it's really math," Friedman told CBS News Miami in July.
Advertisement
Even with home upgrades he's made to lower his insurance costs, he’s still shelling out over $10,000 a year.
"I know a lot of people have seen their premiums go up more," he said.
Roughly 20% of Floridians forgoing insurance
Mark Friedlander, director of communications at the Insurance Information Institute, cited to CBS News Miami an internal study that found 15% to 20% of Floridians are forgoing home insurance. That's compared to 12% across the nation.
That may not be so surprising, considering how high insurance rates have been amid a slew of major weather events and several providers fleeing the state. According to Bankrate, as of October, the average annual premium for insurance in Florida is $5,527 for a $300,000 home — nearly two-and-a-half times the national average of $2,285. Some cities in the state have excessively high insurance costs, such as Fort Lauderdale, which has an average annual premium of $8,432 for such a dwelling.
Homeowners are resorting to different options in order to combat housing costs — with some moving to other states, while others are opting to abandon homeownership.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Does it make sense to self-insure?
Despite the number of Floridians without insurance policies, Friedlander doesn't recommend this option for homeowners.
Advertisement
"Realistically, those homeowners can't afford to pay for a catastrophic loss to their property out of pocket," he told CBS News Miami.
He recommends staying insured, even with Florida's extraordinary prices.
Friedlander believes the cost issue is tied to homeowners who sign up with surplus line insurers, including those with properties on the coast, or those at high risk of experiencing severe weather. These companies are licensed outside of the state and are known to sell high-risk policies that are often more pricey.
"They don't have to follow the same regulations as the standard insurers, meaning they don't have to get their rates approved," he said.
Many homeowners lose out on savings because they don’t shop around their policies, instead going with an insurer they already use or are familiar with. Too often, this leaves money on the table that could go towards saving for an emergency fund, or for retirement.
If you’re questioning whether your insurance rates could be lower, it may be time to consult BestMoney, where you can find the lowest rates on your home insurance for free.
Advertisement
In under two minutes, BestMoney makes it easy and convenient to browse offers tailored to your needs from a list of trusted insurance companies.
Simply fill in a bit of information and quickly find the coverage you need for the lowest possible cost. You could save as much as $980 a year.
While you’re saving money on home insurance, you may also consider whether your auto insurance is optimized for coverage and expense. OfficialCarInsurance helps you instantly sort through the best policies from car insurance providers in your area, including trusted names like Progressive, GEICO and Allstate. With rates as low as $29 per month, you can find coverage that suits your needs and potentially saves you hundreds of dollars per year.
To get started, fill in your information and OfficialCarInsurance will provide a list of the top insurers in your area. You’re closer than ever to maximizing your savings on your insurance.
However, having money put away for a rainy day is still important. And you should put your savings in an account where it can grow so you can hit your savings goal faster. Check out our list of the Best High-Yield Savings Accounts of 2024 to ensure you’re well prepared for any emergency situations.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
The Moneywise Editorial Team is a group of passionate financial experts, seasoned journalists, and content creators who are deeply committed to providing unbiased, relevant, and accurate financial information. With years of combined industry experience, our team is dedicated to maintaining the highest journalistic standards and delivering informative and engaging content. From personal finance and investing to retirement planning and business finance, we cover a broad range of topics to suit the financial needs of our diverse readership. You can trust the Moneywise Editorial Team to empower you with the knowledge and tools necessary to make wise financial decisions.
