In Key West, where the threat of hurricanes and flooding is very high, it’s common sense to have homeowners insurance. A policy that helps rebuild your home in case of disaster would come in handy. Unfortunately, in Key West, it comes at a price.

The average cost of homeowners insurance in Key West is about $9,579 for $150,000 of coverage, $17,448 for $300,000 of coverage, and $24,978 for $450,000 of coverage. Rates vary by location, home value, and other factors, but, generally, Key West has some of the highest insurance rates in Florida with relief not quite in sight in 2024.

Florida overall is one of the most costly states for home insurance due to the relatively frequent inclement weather. An average premium in the state is over $5,00 annually. Rates in the Florida Keys are often even higher because of the extreme risk of hurricane and flood damage.

Let’s break down what some Florida Keys insurance companies are charging for home insurance premiums:

As you can see, these rates are exorbitant. Fortunately, there’s a proven way to lower your home insurance in Key West, and that’s with wind mitigation. The purpose of wind mitigation is to give your house the capabilities to stand up to the strong winds brought by hurricanes or tropical storms.

This can be done through drastic changes to your home like adjusting the way the roof is attached or shaped or more minor alterations like buying storm shutters and impact-resistant doors and windows. 

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.

See how wind mitigation and another important variable, home age, affect Key West home insurance rates for $150,000 homes below:

It’s evident that wind mitigation has a drastic effect on insurance rates. It can easily cut your premiums in half or more, saving you thousands annually. On older homes, the average wind mitigation savings in Key West was nearly $12,000 annually in 2024.

You also may have noticed that newer homes are generally cheaper to insure, too. This is because newer homes are built to the latest safety standards and building codes, which means you’re less likely to encounter issues with the house’s infrastructure that lead to a claim.

Also, newer homes tend to be built with more durable and sturdy features. Things like metal roofs, deadbolt locks, sprinkler systems, and storm shutters often found in newer homes are favorable for an insurance company since they reduce the threat of perils like fire and theft.

Many homes in Key West are on the larger side and their property values have skyrocketed through the years, which would require more coverage to be sufficiently protected. So let’s take a look at what $300,000 and $450,000 worth of home insurance coverage in Key West could cost. You’ll notice the savings for wind mitigation carry over.

If you can find some solace in the high rates, maybe it’s that a homeowners policy protects a lot more than your house in case of disaster. Here are all the aspects of coverage you receive:

Clovered is a great option to find who offers the best rates for home insurance in Key West, Florida. We’re a digital insurance provider that partners with top insurers in the country. With our online quoting tool, an archive of useful insurance information, and a team of licensed insurance agents available by phone or email, Clovered gives you what you need to compare and buy home insurance in Key West.

Wind mitigation and the age of your home are important, but they’re not the only factors that affect rates. Your premium could be higher just for having a pool or trampoline. Many large-scale and small-scale factors influence insurance rates.

Some physical characteristics of your house like the age and size of your home and condition of your roof play a role in the cost of your home insurance in Key West. Generally, bigger homes cost more to insure. 

On a more personal level, your credit and claims history can also affect rates. Having a documented history of being a bad borrower may not bode well for your homeowners insurance. Also, the amount of coverage and the deductible you choose can raise or lower your premium. 

In addition to these, a crucial thing providers of Key West home insurance consider is the threat of severe weather.

As you may have expected, almost all of Key West is in a flood zone, as determined by the Federal Emergency Management Agency (FEMA). Heavy rains in an afternoon can flood streets, while a storm surge from a hurricane or tropical storm can devastate the city. This is important to recognize since homeowners insurance usually won’t cover damage from flooding.

FEMA creates flood zone maps for the country that influence insurance rates for homes at risk of flooding. Key West is almost entirely made up of AE and VE flood zones, except for the most inland part of the city which lies just west of the Key West cemetery. 

Fortunately, the flood insurance cost in Key West is likely decreasing, although the effects of FEMA’s new Risk Rating 2.0 likely impacted premiums for many. The city’s compliance with FEMA’s Community Rating System, which rewards areas that take action to mitigate flood damage, means residents may be eligible for a 15% to 25% discount on flood insurance in Key West.

Key West is very vulnerable to hurricanes. They’ve caused significant and fatal damage to the Florida Keys in the past. Wilma in 2005 wrecked thousands of homes and inundated Key West with water. More recently, Irma damaged over 20,000 homes in Monroe County in 2017. 

Homeowners insurance covers hurricane damage. As you might imagine, though, the potential damage these hurricanes can cause is a chief reason for the expensive premiums in Key West. Basically, the more hurricane claims filed, the higher the cost of home insurance is in Key West.

Comparing rates between Florida Keys insurance agencies is the ultimate way to know you’re getting the best bang for your buck. At Clovered, we’re trying to make this easy. Using our online quote engine, you can customize a plan that meets your needs and compare prices from top providers all from your computer.

We’re always here to help. If you’d rather speak to a licensed agent on the phone, just call 833-255-4117 Monday through Friday from 8:30 a.m. to 6 p.m. Or you can email us anytime at [email protected].