10 Factors That Affect Homeowners Insurance Premiums in Florida

When it comes to homeowners insurance premiums, several factors come into play, and understanding them can be the key to managing your costs. While you might think it’s all about the size or value of your home, there’s a lot more at work beneath the surface. Let’s dig into the 10 factors that affect homeowners insurance premiums in Florida—and everywhere else, too.

1. Location, Location, Location

Where your home is located has a huge impact on your premium. Coastal homes in Florida, for example, face higher premiums due to the increased risk of hurricanes, flooding, and wind damage. Conversely, homes further inland or in areas with lower crime rates often benefit from lower insurance costs. It makes sense, right? The more risks your area poses, the more your insurance company will charge to protect you.

2. Home’s Age and Condition

Older homes can be charming, but they often come with hidden risks. Outdated wiring, old plumbing, or roofs that have seen better days could drive your premium up. Homes that are well-maintained or recently renovated—especially with updated systems—may see lower rates. If you’ve replaced your roof or modernized your electrical system recently, that’s a bonus for your premium.

3. Coverage Limits

The amount of coverage you choose directly affects your premium. Basic coverage that just meets your mortgage lender’s requirements will be cheaper than more comprehensive coverage that protects against every possible risk. But then, you also want to consider what happens if disaster strikes. You don’t want to be underinsured either—so, finding that sweet spot of coverage is key.

4. Home’s Replacement Cost

Your premium isn’t just based on your home’s market value but on what it would cost to rebuild it. A home built with custom materials or unique architectural features will cost more to replace, and that drives up your premium. Similarly, if the cost of building materials rises—something we’ve seen in recent years—insurance costs could also increase.

5. Home Security and Safety Features

Homes with security systems, fire alarms, deadbolts, and even storm shutters can often earn discounts on premiums. These features reduce the risk of significant damage or theft, meaning less risk for the insurance company. So, not only do these add-ons keep you safe, but they can also keep more money in your pocket.

6. Claims History

Both your personal claims history and the history of claims in your area can impact your premium. If you’ve filed multiple claims in the past, insurers may view you as a higher risk, which can raise your rates. Similarly, if your neighborhood has seen a lot of claims for things like theft or weather-related damages, your premium might reflect that.

7. Deductible Amount

Your deductible is the amount you pay out of pocket before your insurance kicks in. Opting for a higher deductible can lower your monthly premium. However, it’s a bit of a balancing act—you don’t want to choose a deductible so high that it’s a financial strain if you ever need to file a claim.

8. Home’s Construction Materials

Homes made from materials that are resistant to damage (like brick or concrete) often have lower premiums than homes built with materials that are more susceptible to damage (like wood). In Florida, homes that are built to withstand hurricanes or meet certain building codes can also come with insurance discounts.

9. Pets

Believe it or not, having certain pets can impact your insurance premium. If you own a breed of dog that’s considered high-risk (like a pit bull or Rottweiler), your insurer may increase your premium—or even refuse coverage. This is because some dog breeds are statistically more likely to be involved in liability claims.

10. Credit Score

In many states, including Florida, insurers use your credit score as part of the calculation to determine your premium. Statistically, individuals with higher credit scores file fewer claims, and as a result, they tend to receive lower rates. If your credit score has improved over time, it might be worth revisiting your insurance policy to see if you qualify for a better rate.

Save On Your Florida Homeowners Insurance With TGS Insurance

Managing these factors that affect homeowners insurance premiums could add money back into your wallet. For instance, you might not be able to change where you live, but improving your home’s security features or increasing your deductible can help. And don’t forget—shopping around and comparing rates is always a good idea. You’d be surprised how much premiums can vary between companies for the same coverage.

Want to get started on lowering your premium? Get an instant quote with TGS Insurance Agency to see how you can save. Whether you’re a new homeowner or just looking to update your current coverage, we’ll help you find the best rates tailored to your needs. From hurricane protection to dog-friendly policies, we’ve got you covered.