Homeowners Insurance in Homestead, Florida (2024)

The right policy will help you get back on your feet financially if your property suffers damage. Keep reading for helpful information and tips for getting the best homeowners insurance in Homestead.

The average cost of homeowners insurance in Homestead is about $8,617 annually on a $150,000 home, $15,602 on a $300,000 home, and $22,398 on a $450,000 home.

South Florida’s susceptibility to hurricane damage drives up insurance rates. Homestead is in the southern end of Miami-Dade County, which has the highest home insurance rates of any county in the state. In some cases, Homestead premiums are more than double the state average.

The following table lists some average rates in Homestead from some common Florida insurance companies.

Insurance premiums increase as home values increase. This is because larger, nicer homes have higher replacement costs. The replacement cost of your home is the amount of money needed to rebuild the house from the ground up based on labor and material costs only. 

Insurance carriers primarily use replacement cost in their calculations rather than market value. The home values we refer to in this article are replacement costs, which aren’t the same as your home’s selling price.

The South Florida region has scores of expensive houses that cause average premiums to skew higher, but you can pay less for home insurance in a more modest house. 

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.

The table below shows home insurance rates in Homestead for $150,000 homes only, accounting for two more critical premium factors: home age and wind mitigation.

As you can see, older houses have notably higher insurance rates than newer ones. Older houses have older components more prone to damage, like old roofs that can’t withstand hurricanes very well. Wear and tear on older homes can also make components like pipes and wiring more prone to failure. 

And, old houses aren’t constructed to the building and safety standards currently required in South Florida, which is essential for hurricane preparedness. These factors make older homes more susceptible to damage and cause higher insurance rates.

Wind mitigation is another hurricane-related factor. Insurers are legally obligated to discount premiums of homeowners whose houses have effective wind mitigation measures. In Homestead, wing mitigating older homes valued at $150,000 dropped rates by over $8,000 annually, on average, a 57% decrease.

Look below at the effects of wind mitigation and home age on $300,000 houses.

Insurance rates continue to climb overall as home value increases, but wind mitigation can still save you significant money on premiums. New houses, which are springing up at a steady pace around Homestead and South Florida, continued to have the lowest average rates. The final table lists Homestead home insurance premiums on $450,000 houses.

Obviously, no company expects you to pay $50,000 or more per year for home insurance. It’s unlikely anyone does. Rather, that’s what average premiums from that company would be, given the factors of an old, expensive home with no wind mitigation. 

State Farm and Safeco had the cheapest homeowners insurance in Homestead, based on our analysis. While this is true on average, it may not be the case for your circumstances. No two policyholders are the exact same, and premiums differ based on many factors.

State Farm is one of the largest, most well-known insurers in the country. Safeco is a subsidiary of Liberty Mutual, another significant, national brand. They’re relatively larger companies compared to some other providers on our list, like People’s Trust.

You should consider local, smaller carriers in addition to large companies to see differences in prices, discounts, and customer service. You won’t know which company has the cheapest homeowners insurance in Homestead for your situation until you get quotes.

No matter which company provides your home insurance policy, the plan should include the same standard coverages. Homeowners insurance covers your property and liability in six key areas:

The best homeowners insurance in Homestead will cover your needs sufficiently at a price you can afford. This may differ from person to person, so instead of suggesting a one-size-fits-all policy, we recommend you understand your coverage needs and shop around to find the best deal. Once you have your parameters in mind, you can tweak some policy details to save money.

You’re responsible for setting many of your policy limits when you get quotes and find a plan. Know what you need in your policy so you don’t overspend or underinsure yourself. 

Make sure your coverage limits are sufficient in all areas. You can create a home inventory for the precise amount of personal property coverage you need. And, adjust your liability limits to account for your assets. For example, if you have $500,000 in assets, you should have at least $500,000 in liability coverage.

You should also recognize exclusions in your plan and consider endorsements if needed. For instance, policies normally only cover valuables and jewelry up to $2,500 or $5,000. You can add optional coverage, called endorsements or riders, to your plan to increase protection. You can get endorsements for jewelry, water backup, home-based businesses, inflation guards, and more.

Once you know what you need in your plan, you should do what you can to save money on your coverage. Shopping around for the best deal is essential. You can get quotes online or over the phone. If you’re really having difficulty finding affordable coverage, you can get an insurance agent in Homestead, Florida.

Ask about discounts when you’re quoting. Carriers commonly offer discounts for home security systems, new construction, policy bundling, and more. You can also consider adjusting your deductible to lower your premiums. 

Homeowners insurance covers you from over a dozen perils. But, perhaps the most significant threat to your property is flooding, and home insurance plans don’t cover flood damage.

Flooding is the most common and costly natural disaster in the country. It has affected all 50 states within the past five years, and Florida is especially prone due to the effects of hurricanes. 

Flooding can happen in Homestead from storm surges, tidal flooding, and heavy rains overflowing drainage systems and canals. The generally low-lying area and proximity to Biscayne Bay and the Atlantic Ocean mean every property in Homestead can flood.

Unfortunately, home insurers can’t afford to include flood damage in their policies, or else premiums would get even higher than they already are in Florida. Consider getting flood insurance in Homestead to fully protect your property.

Insurance carriers examine several variables about you and your home to determine your premiums. Anything that makes you or your property a greater financial risk will increase your rates. 

Some critical factors that influence Homestead homeowners insurance premiums are related to your home construction and policy details.

Your home’s age, size, location, and features can influence your insurance rates. Older homes typically have higher limits because of their dated components. Larger houses also normally have higher limits than smaller ones because larger homes need more coverage.

The materials with which your house was built affect rates, also. Masonry homes (made from brick or concrete) tend to withstand fire and wind damage better than frame houses and can have lower premiums. Also, owning attractive nuisances, such as pools and trampolines, can increase your chances of a liability claim and raise your rates. 

Specific details of your policy itself will also impact your rates. Opting for higher coverage limits or optional endorsements will increase the cost of your policy. Alternatively, raising your deductible and qualifying for discounts can lower your premiums.

Homeowners insurance isn’t required in Homestead by law. However, you must have home insurance when you have a mortgage, as mortgage lenders mandate coverage to protect their investments.

Your lender wants to protect their financial interest in the event of damage or loss to the property. An insurance policy helps safeguard the home and ensures you and your lender can get your money back if the house is destroyed.

If you don’t maintain your own coverage, your provider will force place insurance on you. If you bought your home with cash or paid off your mortgage, no entity will require you to have home insurance. Nevertheless, we recommend always having a policy to protect your home from life’s uncontrollable events.

It’s essential to compare several homeowners insurance quotes in Homestead when looking for a policy to find the best coverage at the best price. If you want help with this process, our team at Clovered is happy to serve as your home insurance agency in Homestead, Florida.

As an independent insurance agency headquartered just up the road in Fort Lauderdale, we partner with some of the top providers in the state. 

Use our online quoting platform to compare your options in Homestead in minutes. Or, if you’d rather speak to a licensed agent for help, call our team at 833-255-4117 during business hours. Feel free to email us, also, at [email protected].