Kirk and Jeanette Micals talk with a FEMA community relations worker after Hurricane Isabel ripped the front end of their home off. | Cynthia Hunter/Wikimedia Commons
The Florida Office of Insurance Regulation (OIR) held hearings for many carriers in 2020 looking to raise rates that homeowners pay for premiums, so it’s important for your budget that you find ways to reduce those costs.
Higher deductibles – especially for hurricanes – “gives you the most bang for your buck,” Stacey Giulianti, a founder of Florida Peninsula Insurance Co. told the Insurance Rate Reporter.
“Check with your agent to maximize the available discounts, including breaks for having an alarm system and hurricane shutters,” Giulianti said.
The Federal Emergency Management Agency’s (FEMA) “Mitigation Ideas” resource suggests additional wind mitigation measures that local governments encourage or require through building codes. FEMA suggests using construction techniques that may include structural bracing, straps and clips, anchor bolts, laminated or impact-resistant glass, reinforced pedestrian and garage doors, window shutters, waterproof adhesive sealing strips, or interlocking roof shingles.
If you haven’t bought your Florida home yet, Kin Insurance suggests asking your agent about the area’s hurricane history so you know what areas get hit by storms and how bad they are. Check the seller’s disclosure, but don’t stop there as they might not know what happened with the home before they bought it.
An insurance provider can pull a Comprehensive Loss Underwriting Evaluation for a property you are thinking about buying. You’ll find out what claims have been filed for the property.
If you are a Florida homeowner already, you have opportunities to lower your insurance costs, Kin reported. Update the home to make it more storm damage resilient. The wind-mitigation upgrades are a start. Also make sure your sump pump works and has a backup power source. Fix any external cracks or other spots that might let water flow into the home.
Ask your insurance agent what mitigation measures get the most benefit for the smallest expense.
Compare premium and deductible costs, Kin suggests. A higher deductible usually results in lower monthly premium costs. Gauge how much you can afford out of pocket, so you don’t run into trouble when filing a claim.
Make sure your insurance covers complete rebuilding costs and replace all your belongings, and not just real estate value, the Insurance Information Institute said in its blog. The organization agrees that the way to save on premiums is to raise the deductible. Just increasing from $500 to $1,000 can create significant savings on your annual premium.
And ask your insurer about all available discounts available for your property.
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