Homeowners Insurance in Estero, Florida

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  • Homeowners Insurance in Estero, Florida

Estero is a high-end, low-key city on Florida’s Gulf Coast. The village boasts excellent shopping, nature, and proximity to beaches, but residents also must be wary of hurricanes.

Homeowners insurance is a financial guard for your property against hurricanes and whatever else life can throw at you in Florida. Having the right coverage in the Sunshine State is essential when storms inevitably roll in.

Unfortunately, finding optimal coverage isn’t always easy, so we made this in-depth guide to help residents find the best homeowners insurance in Estero.

How Much Is Homeowners Insurance in Estero, Florida?

The average cost of homeowners insurance in Estero is $3,809 annually on a $150,000 house, $6,808 on a $300,000 house, and $9,811 on a $450,000 house.

Premiums in Estero are above the state average, likely due to the city’s coastal location. The Gulf Coast of Florida has a chance to be hit directly every hurricane season, evidenced by recent strikes in 2022 and 2023.

Florida already boasts some of the highest home insurance rates in the country due to the overall risk of destruction from hurricanes combined with soaring property values and inflation affecting construction, among other factors.

These considerations mean Estero residents pay a premium for their home insurance, with average rates coming in about 25% above the state average. We examined some common carriers in Florida and depicted their average costs below, depending on home value.

Average Cost of Homeowners Insurance in Estero
Company $150,000 House $300,000 House $450,000 House
Allstate $2,375 $4,247 $6,120
Citizens $2,029 $3,622 $5,217
Florida Penn $3,228 $5,765 $8,305
Liberty Mutual $2,381 $4,248 $6,117
People’s Trust $4,332 $7,740 $11,152
Southern Oak $4,663 $8,356 $12,052
State Farm $3,181 $5,688 $8,197
Stillwater $1,318 $2,358 $3,399
Universal Property $6,751 $12,071 $17,397
Average $3,809 $6,808 $9,811
It’s Time to Switch Your Homeowners Insurance

We partner with the nation’s top homeowners insurance companies so you can get a custom policy at an affordable price.

Homeowners insurance rates vary by company because every carrier has slightly different underwriting guidelines. While the factors that affect premiums largely stay the same, the weight they give to each element varies. Also, company strategy and needs play a role in premium pricing. 

Generally, though, insurance premiums always increase as home value rises. This is because a primary component of home insurance rates is replacement cost, the amount of money needed to rebuild your home from scratch based on materials and labor prices.

As you can see in the table above, homes with higher replacement costs need more coverage, and more insurance coverage costs more money. We further break down average Estero home insurance rates in the following table, focusing on $150,000 homes.

Cost of Homeowners Insurance on $150,000 House in Estero
Company Pre-2001 No Wind Pre-2001 w/Wind 2001-Present
Allstate $3,708 $1,746 $1,672
Citizens $3,032 $1,296 $1,759
Florida Penn $4,351 $2,734 $2,598
Liberty Mutual $3,117 $1,819 $2,207
People’s Trust $7,252 $2,430 $3,314
Southern Oak $8,019 $3,823 $2,146
State Farm $4,845 $2,492 $2,206
Stillwater $2,025 $1,082 $848
Universal Property $11,739 $3,818 $4,697
Average $5,920 $2,735 $2,772

The premiums displayed in this article were obtained by the Florida Office of Insurance Regulation. They represent the most recent rate filings from the state’s largest insurers and can be utilized as an average of what Floridians can expect to pay for homeowners insurance each year. The example premiums are based on a policy for a Florida masonry home with a $500 non-hurricane deductible, a 2% hurricane deductible and no claims in the past three years.

Florida Office of Insurance Regulation Premium Consideration Factors
Home Construction Coverage Definition
*Wind Mitigation Any protection on your home that helps decrease the damage caused by strong winds like a hurricane. This can include certain roof attachments and coverings, extra water-resistant seals and impact-resistant doors and windows.
Pre-2001 Construction w/ No Wind Mitigation These premiums represent homes built before 2001 with no wind mitigation features.
Pre-2001 Construction w/ Wind Mitigation These premiums represent homes built before 2001 with maximum wind mitigation features.
2001-Present Construction These premiums represent homes with limited wind mitigation features and no hip roof built from 2001, when Florida redesigned its building codes and mandated that new construction withstand hurricane-force winds better. 

Homes with wind mitigation had notably lower premiums. Wind mitigation is critical in Florida because of the annual threat of hurricanes. Their destructive history has shaped Florida building codes. 

Wind mitigation reduces the chances of hurricanes damaging your property, and insurers are legally required to discount policyholders’ premiums with wind mitigation features.

It saved homeowners in Estero an average of $3,000 annually on older houses worth $150,000. See how the trend continues on $300,000 homes below.

Cost of Homeowners Insurance on $300,000 House in Estero
Company Pre-2001 No Wind Pre-2001 w/Wind 2001-Present
Allstate $6,674 $3,143 $2,923
Citizens $5,458 $2,333 $3,075
Florida Penn $7,832 $4,921 $4,542
Liberty Mutual $5,611 $3,274 $3,858
People’s Trust $13,054 $4,374 $5,793
Southern Oak $14,434 $6,881 $3,752
State Farm $8,721 $4,486 $3,857
Stillwater $3,645 $1,948 $1,482
Universal Property $21,130 $6,872 $8,211
Average $10,656 $4,923 $4,846

You’ll also notice that newly constructed homes sometimes had the lowest premiums. Newer houses are cheaper to insure than older ones because they have no wear and tear. Older houses’ roofs, siding, and pipes become more likely to fail and generate a claim with age. Insurers charge higher premiums to cover old homes due to the increased risk of damage.

Also, newer homes are always built with some type of wind mitigation, such as hurricane windows. Wind mitigation cut premium by over 50% on Estero homes worth $300,000. The final table depicts average rates for $450,000 homes.

Cost of Homeowners Insurance on $450,000 House in Estero
Company Pre-2001 No Wind Pre-2001 w/Wind 2001-Present
Allstate $9,641 $4,540 $4,180
Citizens $7,883 $3,370 $4,397
Florida Penn $11,313 $7,108 $6,495
Liberty Mutual $8,104 $4,729 $5,517
People’s Trust $18,855 $6,318 $8,284
Southern Oak $20,849 $9,940 $5,365
State Farm $12,597 $6,479 $5,516
Stillwater $5,265 $2,813 $2,119
Universal Property $30,521 $9,927 $11,742
Average $15,392 $7,111 $6,930
It’s Time to Switch Your Homeowners Insurance

We partner with the nation’s top homeowners insurance companies so you can get a custom policy at an affordable price.

Companies With the Cheapest Homeowners Insurance in Estero

Stillwater tended to have the cheapest homeowners insurance in Estero. But, rates vary due to many factors, and no company will be the most affordable by default for everyone.

Although it offers products nationwide, Stillwater Insurance Group may not be well-known outside of insurance circles as they don’t advertise like State Farm and Allstate. Stillwater is headquartered in Jacksonville and may be a good place to start getting quotes.

You should always get quotes from multiple providers when looking for the cheapest homeowners insurance in Estero. You won’t know which carrier has the best rates for your situation until you check. 

Estero Homeowners Insurance Coverages

The most common type of homeowners insurance that people purchase is officially known as the HO3 form. The HO3 policy form contains six major coverage areas that remain the same regardless of provider.

Estero Homeowners Insurance Coverages
Coverage Definition
Dwelling Coverage Dwelling coverage financially protects your home and its components, including the roof, walls, flooring, patios, and HVAC, from damage.
Other Structures Coverage Other structures coverage safeguards fixtures on your property not attached to your main house, such as sheds, detached garages, fences, and pools.
Personal Property Coverage Personal property coverage guards your belongings from damage and theft. Covered items include furniture, clothes, electronics, jewelry, tools, and more.
Loss of Use Coverage Loss of use coverage helps cover living expenses you incur if you’re forced to move out of your home after it suffers major damage. Your insurer can cover lodging, groceries, and gas while you’re displaced.
Liability Coverage Liability coverage covers medical expenses and legal fees if someone is injured around your property and sues you for their damages.
Medical Payments Coverage Medical payments coverage is designed to cover minor medical expenses if someone gets hurt on your property, regardless of fault.

The other types of home insurance are HO1 and HO2 forms. While they’re cheaper than the typical HO3 policy we’ve been breaking down here, they also provide less coverage and don’t always satisfy lender requirements. 

How to Get the Best Homeowners Insurance in Estero

The best homeowners insurance in Estero covers your belongings, property, and liability at a price that works for you. The exact protection you need might not be the coverage someone else needs, so it’s hard to recommend a default best provider. 

Instead, we encourage you to fully understand your coverage needs and shop around for the best price to find the best policy for your situation.

Address Your Coverage Needs

You should know your coverage needs so you can adjust your home insurance plan to fit your circumstances. When getting quotes, you have the final say on all of your policy limits.

Ensure your dwelling coverage limit is at least 80% of your home’s replacement cost. This is known as insurance to value, and while companies won’t normally let you choose less than 80%, you may want to make it closer to 100% so you’re fully covered in case of a total rebuild, even if it means raising your premiums.

You should also create a home inventory to figure out exactly how much personal property coverage you need. An inventory will value your items to the tee. The number you come up with is the precise amount of personal property coverage you need without underinsuring yourself or overpaying for unnecessary limits.

Note exclusions in your policy, and consider endorsements to guard areas or risks not included in standard coverage. Endorsements are optional coverage add-ons you can purchase for things like valuables or home-based businesses, areas not covered by default.

Shop Around

Once you know what protection you need, it’s time to find the best price. Shopping around is the most proven way to find savings on coverage. You can compare rates, endorsements, and discounts when you shop around so you can get the policy you need at the most competitive price.

You can compare quotes online or over the phone. When shopping online, note differences in website navigability and ease of use. When speaking with insurers on the phone, gauge which companies have the best customer service. Qualitative factors like these also make a difference when looking for the best option. You can also consult a home insurance agency in Estero, Florida, for more in-person help, if needed.

What to Know About Flood Insurance in Estero

While shopping around, we want to mention that you probably won’t find a home insurance plan covering flooding. Flood damage is normally excluded from all homeowners insurance policies.

Floods are the most common and costly natural disaster in the country. They’re too expensive to factor into home insurance, and doing so would cause premiums to rise even higher than they are. 

Florida is especially prone to flooding in the form of heavy rains year-round and storm surges during hurricane season. According to the village of Estero, 45% of the community is located in a federally designated high-risk flood zone.

We highly encourage you to look into Estero flood insurance to protect your property fully. Thanks to Estero’s history of flood mitigation efforts, village residents are eligible for up to 20% discounts on flood insurance from the National Flood Insurance Program (NFIP), the nation’s largest flood insurer.

Stay Above Water With Flood Insurance

Do you want to pay for costly and common flood damage yourself or have an insurance policy pick up the tab?

Important Cost Factors of Home Insurance in Estero, Florida

Insurance companies analyze several variables about you and your property to determine rates. Premiums reflect the risk of insuring your home or the likelihood the carrier will have to pay out a claim on the property. Homes that have higher financial risks have higher premiums.

Some of the most significant factors that affect Estero homeowners insurance rates include:

Location: Homes on or near canals and lakes tend to have higher rates because they’re more prone to wind and flood damage. Homes in high-crime areas may also have lower premiums. Conversely, houses close to fire stations can receive discounts.

Home Construction: The materials your home was built with influence rates. Masonry homes withstand wind and fire damage better and often have lower rates than wooden frame houses. Also, foundation type and roof type affect premiums.

Home Features: The features of your home can impact rates in several ways. Having high-end features increases your replacement cost and policy limits. Pools and trampolines are known as attractive nuisances and can increase your chances of liability claims and premiums. 

Claims History: You’ll likely have higher premiums if you have filed several claims in the recent past or if your property has spawned many claims throughout its history. 

Deductible: Your deductible is the amount of money you’re responsible for paying before your insurance coverage kicks in. Raising your deductible lowers your chances of filing a claim and, thus, lowers your rates.

Company Needs: Insurers can raise premiums if they’re experiencing losses in other business areas or lower prices to gain more policyholders in some areas.

Is Home Insurance Required in Estero?

Homeowners insurance isn’t required by any law in Estero. But, if you have a mortgage, your lender will likely mandate coverage.

Mortgage lenders put down significant amounts of money to help purchase homes. To protect their investments, they’ll require you to keep homeowners insurance. If your house gets destroyed, the lender can get reimbursed their money from the insurance provider.

You can’t have a mortgage without also having homeowners insurance. If you fail to secure your own coverage, your lender will force place insurance on you. Force-placed insurance is more costly and less comprehensive than standard insurance. It’s not in your best interest, and you should avoid it by finding your own policy and always making timely payments.

How to Get Homeowners Insurance Quotes in Estero

You can go about getting quotes on your own, but if you ever want any help during the process, don’t hesitate to reach out to our team at Clovered.

We’re an independent insurance agency headquartered in South Florida. We know how difficult it can be to find affordable coverage in the state, and we can help you find a policy you need at the price you want with one of our many partners.

Use our online quoting engine to compare your options on your own time, or feel free to give us a call at 833-255-4117 during business hours, and one of our licensed agents will help you get homeowners insurance quotes in Estero. You can also email us at agent@clovered.com.

It's Time to Switch Your Homeowners Insurance

We partner with the nation's top homeowners insurance companies so you can get a custom policy at an affordable price.

The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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