Homeowners Insurance in Marco Island, Florida

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  • Homeowners Insurance in Marco Island, Florida

Marco Island is a bastion of luxury and seclusion in Southwest Florida, just north of the Ten Thousand Islands and Everglades National Park.

As a barrier island, Marco Island would be one of the first places hit if a hurricane comes through the Gulf and strikes Florida’s Paradise Coast. 

Residents need the right homeowners insurance in Marco Island for financial protection from hurricanes and other possible disasters. We’ve condensed everything you should know to find the best policy below, including average costs and money-saving tips.

How Much Is Homeowners Insurance in Marco Island, Florida?

The average cost of homeowners insurance in Marco Island is $4,801 on a $150,000 home, $8,584 on a $300,000 home, and $12,371 on a $450,000 home.

Florida has the most costly home insurance rates in the country. Coastal regions in the state experience the brunt of these high premiums because of their increased likelihood of hurricane damage, the primary concern of insurance companies in Florida.

Unfortunately, rates in Marco Island are about 57% higher than the state average. Its location on the Gulf Coast leaves it exposed to hurricanes during every storm season.

However, rates vary due to many factors, and there’s no need to panic about expensive home insurance before delving into the numbers in detail. The following table shows average premiums in Marco Island from nine common carriers, segmented by home value.

Average Cost of Homeowners Insurance in Marco Island
Company $150,000 House $300,000 House $450,000 House
Allstate $2,317 $4,143 $5,971
Citizens $2,926 $5,223 $7,524
Florida Penn $3,781 $6,755 $9,732
Liberty Mutual $2,439 $4,356 $6,275
People’s Trust $6,982 $12,476 $17,977
Southern Oak $7,475 $13,400 $19,329
State Farm $3,833 $6,854 $9,877
Stillwater $1,721 $3,079 $4,438
Universal Property $8,415 $15,046 $21,685
Average $4,801 $8,584 $12,371
It’s Time to Switch Your Homeowners Insurance

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As you can see, rates on cheaper homes are much more affordable than more expensive properties. This is because insurance companies utilize your home’s replacement cost as a basis for how much insurance you need in your policy.

Replacement cost is the amount of money it would take to rebuild your house from the ground up based on construction and labor expenses. Larger, nicer homes always cost more to rebuild and, thus, more to insure.

Rates vary because every company has slightly different ways of underwriting, weighing the factors that affect premiums. Two more essential considerations in Marco Island insurance costs are home age and wind mitigation features. Look how average rates change at every home price level when accounting for these two variables, starting with $150,000 houses.

Cost of Homeowners Insurance on $150,000 House in Marco Island
Company Pre-2001 No Wind Pre-2001 w/Wind 2001-Present
Allstate $3,781 $1,581 $1,588
Citizens $4,378 $1,877 $2,523
Florida Penn $5,355 $3,035 $2,953
Liberty Mutual $3,930 $1,424 $1,962
People’s Trust $12,102 $3,571 $5,272
Southern Oak $13,359 $5,912 $3,153
State Farm $5,970 $2,847 $2,683
Stillwater $2,725 $1,350 $1,087
Universal Property $14,694 $4,719 $5,832
Average $7,739 $3,283 $3,382

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. 

Rates in Marco Island are the most affordable with wind mitigation. Wind mitigation features can reduce your premiums by more than 50% in Marco Island. Its effects are so prominent because insurers are very concerned about hurricane damage on the island. Wind mitigation reduces the possibility of your home suffering hurricane damage, thus lowering your financial risk and leading to cheaper insurance rates.

See how the trend continues on $300,000 houses.

Cost of Homeowners Insurance on $300,000 House in Marco Island
Company Pre-2001 No Wind Pre-2001 w/Wind 2001-Present
Allstate $6,806 $2,846 $2,777
Citizens $7,880 $3,379 $4,411
Florida Penn $9,639 $5,463 $5,162
Liberty Mutual $7,074 $2,563 $3,430
People’s Trust $21,784 $6,428 $9,217
Southern Oak $24,046 $10,642 $5,512
State Farm $10,746 $5,125 $4,690
Stillwater $4,905 $2,430 $1,901
Universal Property $26,449 $8,494 $10,196
Average $13,930 $5,909 $5,913

Wind mitigation in Marco Island can easily save you thousands annually. Newly built homes had similarly lower premiums because all new houses are built with some wind mitigation features by default.

Older homes tend to have the highest premiums because of their wear and tear, and their dated construction is more likely to suffer damage. Old roofs, pipes, wiring, and siding are more prone to failure.

The final table shows average home insurance rates in Marco Island for homes with replacement costs of $450,000.

Cost of Homeowners Insurance on $450,000 House in Marco Island
Company Pre-2001 No Wind Pre-2001 w/Wind 2001-Present
Allstate $9,831 $4,111 $3,971
Citizens $11,383 $4,880 $6,308
Florida Penn $13,923 $7,891 $7,382
Liberty Mutual $10,218 $3,702 $4,905
People’s Trust $31,465 $9,285 $13,180
Southern Oak $34,733 $15,371 $7,882
State Farm $15,522 $7,402 $6,707
Stillwater $7,085 $3,510 $2,718
Universal Property $38,204 $12,269 $14,580
Average $20,121 $8,536 $8,456
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 Marco Island

Stillwater and Liberty Mutual had the cheapest homeowners insurance in Marco Island. However, with the many factors affecting rates, you may find that another company is more affordable for you once you get quotes.

Both companies are national carriers offering their products throughout the country. However, we recommend quoting from large and small companies in Florida when looking for coverage. Note differences in price, customer service, and more among the carriers to determine the choice best for you.

Home insurance premiums vary by policyholder, location, and property, so you won’t know which company is the cheapest until you compare your options with multiple companies.

Marco Island Homeowners Insurance Coverages

Homeowners insurance policies always include the same coverage areas, regardless of provider. Plans are generally separated into six coverage areas:

Marco Island Homeowners Insurance Coverages
Coverage Definition
Dwelling Coverage Dwelling coverage covers your home’s physical structure, including the roof, walls, flooring, patios, pipes, water heater, and more.
Other Structures Coverage Other structures coverage covers fixtures on your property not attached to your house, such as sheds, pools, fences, and detached garages.
Personal Property Coverage Personal property coverage covers your possessions, including furniture, electronics, clothing, jewelry, tools, art, and more.
Loss of Use Coverage Loss of use coverage covers temporary living expenses if you must move out of your house after it suffers property damage rendering it uninhabitable. Your insurer can cover lodging, gas, food, and more.
Liability Coverage Liability coverage covers many expenses if you’re found legally responsible for someone’s injuries or property damage. Your insurer can cover medical bills, legal fees, and more.
Medical Payments Coverage Medical payments coverage covers minor medical expenses if someone is injured around your property, regardless of fault.

How to Get the Best Homeowners Insurance in Marco Island

You need to understand your policy details and coverage needs to get the best homeowners insurance in Marco Island. Since every policyholder is different, it’s impossible to recommend the best companies and coverage options for everyone.

Instead, we recommend understanding how to adjust your policy to suit your circumstances. Also, you should always shop around to find the best rates.

How to Adjust Your Policy

You’re responsible for setting your policy limits and adding optional coverage if needed to protect your home. Know how to tailor quotes to your property by understanding coverage limits.

You’re required to insure your home to at least 80% of your home’s replacement cost, but it would be wise to cover your home to 100% of its value to be fully covered if you need to rebuild completely.

You should also have enough personal property coverage to account for all of your belongings. When quoting, insurers often estimate your needed personal property limit to 50% of your dwelling coverage. But, if you create a home inventory to catalog your belongings and their values, you can adjust our personal property limit to the exact number you need. A home inventory can save you money and prevent you from underinsuring yourself.

If you find the default coverages in your policy insufficient in some way, you can purchase an endorsement for supplemental coverage. Endorsements vary by company, but you can usually get coverage for additional perils or items normally excluded.

You can typically get endorsements for valuable items, home-based businesses, and water backup.

How to Save Money

Once you understand the coverage you need, you should compare quotes from multiple carriers. Have the information you need for a quote handy, namely your property details like age, square footage, and construction information.

Shopping around will allow you to find the best rates. You can also note possible discounts.

Raising your deductible will also save you money on home insurance in Marco Island. Your deductible is the amount of money you’re responsible for when filing a claim. It gives you a financial stake in your home’s maintenance and prevents you from filing claims for every minor damage incident, 

You choose your deductible when quoting, which usually ranges from $500 to $2,000. Picking a higher deductible reduces your financial risk to the insurer, thus lowering your premiums. It’s an easy way to save money, but make sure you keep the deductible within your budget.

What to Know About Flood Insurance in Marco Island, Florida

With the water so close at all times, Marco Island residents understand the possibility of flooding. You should also recognize that homeowners insurance doesn’t cover flood damage. If you want protection from storm surges, coastal erosion, and flash flooding, you need a separate flood insurance policy.

According to the city’s website, there are over 6,100 active flood insurance policies on Marco Island, with 98% of plans located in a Special Flood Hazard Area, a federally designated high-risk flood zone. Collier County overall has the second-most flood insurance policies of all counties in the state.

Marco Island experienced significant flooding from Hurricane Ian in 2022, with storm surge exceeding eight feet at its worst, recently underlining the need for flood insurance. You can get flood insurance in Marco Island from a private insurer or the National Flood Insurance Program, which the government funds.

The city’s flood mitigation efforts have earned NFIP policyholders a potential 20% discount on their flood insurance premium through the Community Rating System. This NFIP initiative rewards communities with proactive food mitigation and prevention measures. 

The average cost of a flood insurance policy from the NFIP on Marco Island was just over $600, which could be well worth it. The NFIP reports that one inch of floodwater in your home can cause over $20,000 in damages.

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?

What Affects the Cost of Home Insurance in Marco Island, Florida?

Homeowners insurance rates are affected by many factors relating to the property and policyholder. Insurers will assess your home’s ability to withstand damage. Your rates will also depend on the amount of coverage you get.

Rates in Marco Island are relatively high due to its risk of hurricane damage, with hurricanes Irma and Ian causing issues in recent years. Companies will ask about your home’s components, such as the roof, pipes, and HVAC. Houses with older components, especially roofs, tend to suffer damage more easily and have higher premiums.

Carriers may also inquire about potential features on your property that affect rates. For example, having a pool or trampoline can increase your liability risk and raise premiums. On the other hand, having a burglar alarm or deadbolt locks can earn you a discount.

The details of your policy also affect rates. Opting for higher coverage limits and optional endorsements increases your insurance costs. Raising your deductible will lower your premiums.

Is Home Insurance Required in Marco Island?

Homeowners insurance isn’t required by law in Marco Island, but your mortgage lender will mandate coverage.

Lenders require insurance so their investment in your property is protected. You and your lender have a financial stake in your home. So, if it got destroyed, you both would have no way to recoup the money you’ve put into your house without an insurance policy. The insurer will reimburse both parties.

If you don’t get a policy yourself or let your plan lapse during your loan, your lender will force place insurance on you. Force-placed coverage is expensive and suboptimal, increasing your insurance costs for limited coverage. We recommend always avoiding force-placed insurance by finding and maintaining your own policy.

How to Get Homeowners Insurance Quotes in Marco Island, Florida

The limited real estate and prime location of Marco Island means every home is precious. Protecting your property with the right coverage is crucial. You shouldn’t take any shortcuts in your insurance search.

To be sure you’re protecting your home as well as possible, consult our team at Clovered. We’re a South Florida-based independent insurance agency helping thousands of state residents find the coverage they need at the price they want.

You can shop Marco Island homeowners insurance quotes online with our quoting tool, where it only takes minutes to input your property information and see your options.

If you need help at any time, or if you’d just rather chat with one of our licensed agents for your quote, call us at 833-255-4117 during business hours. You can also email our team at agent@clovered.com.

Homeowners
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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