Homeowners Insurance in Palmetto Bay, Florida

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  • Homeowners Insurance in Palmetto Bay, Florida

Palmetto Bay, a suburb south of Miami, boasts an ideal location for sun and surf on Biscayne Bay and the Atlantic Ocean. Unfortunately, its location also leaves properties in the town prone to hurricane damage.

You need homeowners insurance in Palmetto Bay to protect your home and belongings from several types of damage, including hurricanes. Unfortunately, home insurance in South Florida isn’t cost-friendly.

Use this comprehensive guide for help finding the best home insurance in Palmetto Bay, Florida, while not paying an arm and a leg.

How Much Is Homeowners Insurance in Palmetto Bay, Florida?

The average cost of homeowners insurance in Palmetto Bay is about $8,173 annually on a $150,000 house, $14,617 on a $300,000 house, and $21,066 on a $450,000 house.

Unfortunately for Palmetto Bay residents, Miami-Dade County has the second-highest average premiums of all counties in the state. South Florida has substantial insurance premiums because of the high property values and significant hurricane risk.

The table below breaks down average home insurance rates in Palmetto Bay from some popular companies so you know what to expect when getting a policy.

Average Cost of Homeowners Insurance in Palmetto Bay 
Company $150,000 House $300,000 House $450,000 House
Allstate $3,918 $7,008 $10,100
Citizens $4,513 $8,054 $11,600
Florida Penn $8,418 $15,048 $21,685
Liberty Mutual $4,303 $7,680 $11,061
People’s Trust $15,132 $27,087 $39,052
Southern Oak $13,046 $23,349 $33,661
State Farm $5,669 $10,147 $14,629
Stillwater $4,366 $7,810 $11,257
Universal Property $10,524 $18,840 $27,163
Average $8,173 $14,617 $21,066
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.

Perhaps unsurprisingly, more expensive properties cost more to insure. Insurance companies generally value properties using their replacement cost, which is the amount needed to rebuild the house based on materials and labor only. It’s not the same as market value, which is your home’s selling price. Your home’s value is a basis point for many aspects of your insurance plan.

In addition to home value, insurers also examine your home’s age and wind mitigation features. Below, we’ve included a table with average homeowners insurance rates in Palmetto Bay for $150,000 houses specifically. Note the effects of home age and wind mitigation on premiums.

Cost of Homeowners Insurance on $150,000 House in Palmetto Bay 
Company Pre-2001 No Wind Pre-2001 w/Wind 2001-Present
Allstate $6,309 $2,829 $2,617
Citizens $6,177 $3,346 $4,016
Florida Penn $12,501 $6,678 $6,076
Liberty Mutual $6,008 $3,083 $3,819
People’s Trust $29,600 $7,084 $8,711
Southern Oak $20,409 $11,007 $7,721
State Farm $9,220 $4,480 $3,307
Stillwater $6,267 $4,000 $2,830
Universal Property $19,800 $5,764 $6,009
Average $13,207 $5,808 $5,504

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 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. 

You can see how premiums from some companies easily become unattainable without wind mitigation. Companies are very wary of writing homeowners insurance in South Florida, and several carriers have stopped or limited offering coverage in the region since 2020.

Wind mitigation reduced premiums on older homes by about 56% in Palmetto Bay, while new construction generally had the lowest rates. Observe how the trend continues for $300,000 homes.

Cost of Homeowners Insurance on $300,000 House in Palmetto Bay 
Company Pre-2001 No Wind Pre-2001 w/Wind 2001-Present
Allstate $11,356 $5,092 $4,575
Citizens $11,119 $6,023 $7,021
Florida Penn $22,502 $12,020 $10,623
Liberty Mutual $10,814 $5,549 $6,676
People’s Trust $53,280 $12,751 $15,229
Southern Oak $36,736 $19,813 $13,498
State Farm $16,596 $8,064 $5,781
Stillwater $11,281 $7,200 $4,948
Universal Property $36,640 $10,375 $10,506
Average $23,772 $10,455 $9,623

The final table shows home insurance rates in Palmetto Bay for $450,000 homes, which become very costly without wind mitigation.

Cost of Homeowners Insurance on $450,000 House in Palmetto Bay 
Company Pre-2001 No Wind Pre-2001 w/Wind 2001-Present
Allstate $16,403 $7,355 $6,542
Citizens $16,060 $8,700 $10,040
Florida Penn $32,503 $17,363 $15,191
Liberty Mutual $15,621 $8,016 $9,547
People’s Trust $76,960 $18,418 $21,777
Southern Oak $53,063 $28,618 $19,302
State Farm $23,972 $11,648 $8,267
Stillwater $16,294 $10,400 $7,076
Universal Property $51,480 $14,986 $15,024
Average $34,337 $15,101 $13,761

No company expects you to pay over $30,000 annually on home insurance. Rather, the extremely high prices are averages based on the factors discussed and don’t represent an actual policy in those cases. While you might be quoted that number from a company, it’s more likely they wouldn’t offer you coverage for that amount as they’re too wary of insuring old homes in South Florida.

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 Palmetto Bay, Florida

According to our findings, Stillwater and Allstate usually had the cheapest homeowners insurance in Palmetto Bay. However, the “cheapest” carriers will vary by person since every policyholder differs. You should always compare multiple quotes when looking for coverage to guarantee you’re getting a good deal.

We want to make a special note about Citizens. Citizens is the largest home insurer in Florida in 2023. However, they’re not a standard company. Citizens is a state-run entity that was created as a sort of backup plan for homeowners unable to find coverage from a traditional insurer.

Due to recent difficulties in the Florida market, Citizens has had to take on more policies than it wants. It’s trying to offload policyholders. Also, their plans have lower limits and less flexibility than policies from private companies.

Palmetto Bay Homeowners Insurance Coverages

Homeowners insurance policies generally have the same coverage areas, no matter who you get the policy from. Plans cover property and liability in several ways:

Palmetto Bay Homeowners Insurance Coverages
Coverage Definition
Dwelling Coverage Dwelling coverage in homeowners insurance financially protects the structure and components of your home, such as the roof, walls, floor, patios, foundation, wiring, plumbing, and more.
Other Structures Coverage Other structures coverage guards the features on your property not attached to your main house, including fences, sheds, carports, detached garages, gazebos, and more.
Personal Property Coverage Personal property coverage covers your belongings in and around your house, such as electronics, clothing, furniture, tools, art, jewelry, small appliances, and more.
Loss of Use Coverage Loss of use coverage helps pay for living expenses you’d incur if you’re forced to temporarily move out of your home after it suffers damage from a covered loss, such as a fire or hurricane. Your insurer can cover groceries, lodging, gas, and more.
Liability Coverage Liability coverage covers you financially if you’re found liable for someone’s injury or property damage in a lawsuit. Your insurance company can pay medical bills, legal fees, and more.
Medical Payments Coverage Medical payments coverage covers minor injuries someone can suffer without the need for legal liability. 

How to Get the Best Home Insurance in Palmetto Bay

Know your coverage needs and budget to secure the best home insurance in Palmetto Bay. Set the right policy limits and shop around to get the best and most protective deal.

Determine Policy Limits

You have flexibility when deciding your plan’s coverage limits. Typically, your insurer calculates your dwelling and other structures coverage based on your house’s replacement cost, so you don’t have much say in those. But, you can determine your personal property and liability limits.

Create a home inventory to determine the exact amount of personal property coverage you need. This inventory documents all your items and their worth, so you know just the number to set your personal property coverage limit.

You can also adjust your liability coverage. While insurers require at least $100,000, most will suggest more. Consider opting for at least $300,000 in coverage, depending on your financial assets and available cash. If you have very valuable assets, you’ll need more. 

Consider Endorsements

Depending on your property and belongings, you may need additional coverage beyond what’s included in a standard plan to guard your home and possessions fully. You can get supplementary coverages known as endorsements.

Common endorsements include home-based business coverage, additional coverage for valuables, inflation guards, and water backup. You should also note when your plan covers items at replacement cost or actual cash value.

Compare Quotes

Once you have determined the particulars of your policy, compare offerings from various insurance companies to make sure you get the best deal. Evaluate coverage options, available endorsements, and potential discounts.

You should also note the quality of customer service the different companies provide. Pay attention to which carriers are helpful and offer friendly user interfaces and online resources, as you’ll want a straightforward process when filing a claim.

What to Know About Flood Insurance in Palmetto Bay

Palmetto Bay’s location in South Florida on the Atlantic Ocean leaves properties very vulnerable to flood damage. Unfortunately, home insurance doesn’t cover flood damage in almost any scenario.

For insurance purposes, you can consider flood damage as any water rushing into your home from the outside. In particular, storm surges from hurricanes and tropical storms can lead to coastal flooding, while heavy rains can result in localized urban flooding in Palmetto Bay.

Floods are more common than you think and can be very costly to remediate. Premiums would be even higher than they are now if carriers covered flood risk in home insurance. This means your home isn’t fully protected unless you have flood insurance in Palmetto Bay.

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?

Cost Factors of Home Insurance in Palmetto Bay

Companies take several aspects of your property, policy, and personal details into account when calculating premiums. They take so many things into account to get an accurate risk level. Homes at higher risk of property damage pay more for coverage.

Some critical factors that affect Palmetto Bay home insurance include:

Location: The location of your home plays a significant role in determining your insurance premium. Homes on the water or in high-crime areas may see increased rates. Homes located near fire hydrants and stations may be considered lower risk and could receive lower premiums.

Policy Details: The amount of coverage you select for your home in your coverage limits affects rates. Your deductible, the amount you must pay out of pocket before your insurance coverage kicks in, also influences premiums. Choosing a higher deductible can lower your rates, but it also means you’ll pay more in the event of a claim.

Home Age and Construction: Older homes or those built with materials that are more susceptible to damage may have higher premiums. For example, wooden frame houses might cost more to insure than brick or concrete homes.

Claims History: If you’ve filed claims in the recent past, you may be considered a higher-risk policyholder and pay higher rates than someone who has never filed one before.

Discounts: Many insurance companies offer discounts for factors like bundling home and auto insurance, having a good claims history, being a non-smoker, or having certain safety features in your home.

Is Home Insurance Required in Palmetto Bay?

Homeowners insurance isn’t required in Palmetto Bay unless you have a mortgage. No law requires insurance, but mortgage lenders do.

Lenders mandate home insurance as part of home loans to protect their investment in the property. If the home got destroyed, you and your lender can recoup the money put into your house through the insurance policy.

If you don’t maintain coverage, your lender will force-place insurance on you. Force-placed coverage is less protective and more expensive than standard coverage you can get on your own. Avoid force-placed coverage by shopping for your own plan and making your payments on time.

How to Get Home Insurance Quotes in Palmetto Bay

Shopping for home insurance can be tiresome and confusing, especially if it’s your first time. Turning to an experienced and knowledgeable home insurance agency in Palmetto Bay like Clovered can save you time and money.

We’re headquartered in Fort Lauderdale, so we’re very familiar with how difficult it can be to get cheap homeowners insurance quotes in Palmetto Bay. If you want help finding coverage, use our online quoting platform to compare rates from top providers in minutes.

Or, you can give our licensed agents a call at 833-255-4117 during business hours to get a quote over the phone. You can shoot us an email at agent@clovered.com if you have any questions.

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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