Homeowners Insurance in Pensacola, Florida

Pensacola is one of the oldest settlements in Florida and has the longest stretch of federally protected seashore in the nation. Its large military presence and the architectural influence of past Spanish and British rule give the city a unique coastal vibe different from other towns in the state and country.

With a relatively low cost of living and a desirable location on the Gulf, it makes sense that the Pensacola metropolitan area is the largest in the Florida Panhandle.

The average cost of Pensacola home insurance is about $3,457 annually, or about 18% higher than Florida’s average rate of $2,924 annually. If this seems pricey, it’s because it is. 

Florida has some of the highest home insurance premiums in the country, and they increased again in 2024. However, it seems like the market is stabilizing, as the Insurance Information Institute reported the average, statewide premium hikes are below 2% in 2024, which is far below the projected average increase, year-to-date. 

Pensacola’s prime location for leisure leaves it exposed to hurricanes and floods, which contributes to higher insurance costs. Nonetheless, here are the average premiums in Pensacola from some of the top carriers in the state:

Homeowners insurance is nuanced, as many factors determine the cost of a policy. In Florida, one of the biggest factors is wind mitigation. How well a house can stand up to strong winds – like those from a hurricane – is very important to insurers because it can reduce the chances of a claim, thus saving the insurer money.

A wind mitigation is any protection on your home that can resist high winds caused by storms like hurricanes. This can include impact-resistant doors and windows, roof attachments and coverings, and extra water-resistant seals. Having wind-mitigation features on your home generally results in lower premiums, too. 

Home age is a crucial consideration for providers, too. Older homes aren’t up to the latest building codes, which means they’re not as sturdy or safe in a significant storm. Their older features are also more likely to lead to a claim. So, insurers typically prefer to cover newer houses instead of older ones.

It’s almost always worth the time and effort to get a wind mitigation inspection, especially if you have an older home. You can’t “fail” an inspection, meaning your premium would never go up after one, even if it’s discovered your house has no wind mitigation. Instead, you’d find out what changes you can make that would help you save on your Pensacola home insurance rates.

The purpose of homeowners insurance is to financially safeguard your property from an unexpected disaster. This includes coverage of more than just your house. The average premiums displayed above reflect a policy that includes these aspects of protection:

Dwelling coverage covers things like the foundation, roof, or walls of your home. It covers the structure of your home should a covered peril on your policy damage it. It may also be called Coverage A. 

Other structures coverage covers things on your property like sheds, fencing, or garages. It covers the elements of your property that aren’t attached to the main structure of your home. It may also be called Coverage B. 

Personal property coverage covers your belongings, like furniture, electronics, art, and much more. It may also be called Coverage C. 

Loss of use coverage may help you out if your home becomes uninhabitable due to damage caused by a covered peril. It may cover the cost of groceries, temporary housing, or other necessities. It may also be called Coverage D.

Liability coverage protects your liability if a guest injures themself on your property or if a member of your household causes damage to someone else’s property. It may cover legal defense fees and medical expenses. It may also be called Coverage E. 

Medical payments coverage may cover medical expenses if a guest sustains a minor injury on your property. It may also be called Coverage F. 

When purchasing a policy, you decide the amount of coverage you want, which influences your rate. Also, raising or lowering your deductible changes your rate. Many people know that choosing a higher deductible can be a quick way to decrease your monthly premium, but there are many more considerations that determine the cost of homeowners insurance in Pensacola.

No two houses and homeowners are alike, which is why premiums for homeowners insurance in Pensacola, Florida can vary greatly. Insurance companies look at everything from neighborhood crime trends to the type of dog breed you own. Some things that insurance companies consider beyond wind mitigation include:

In addition to the determinants mentioned above, some weather-related hazards generally raise homeowners insurance rates in Pensacola.

The physical makeup and location of Pensacola can create flooding problems. It’s enclosed by bodies of water to the east, west, and south, has many low-lying areas, and receives a lot of rain every year. This is important to note because homeowners insurance doesn’t cover flood damage.

Flooding is an extremely common and costly disaster. According to the Insurance Information Institute, the average flood claim is over $40,000, which is about five times the cost of the average homeowners insurance claim. Even large providers would struggle to regularly afford claims of this magnitude.

 To be financially protected from floods, you’d have to purchase a separate flood policy which is available through private insurers or the government. The Federal Emergency Management Agency (FEMA) creates flood maps for the country and manages the National Flood Insurance Program.

Homes in FEMA-designated flood zones are determined to have a higher risk of flooding. In Pensacola, some residential areas along Perdido Bay are in flood zones, as well as places along the coast of southern Pensacola near Big Lagoon. If your home is located within a flood zone, your mortgage lender may require you to get flood insurance. According to the Escambia County website, over 13,000 residents have flood policies. 

The ground under Pensacola is generally thicker than in the southern and central parts of Florida where sinkholes are more common, but this doesn’t mean they’re not possible. Overall, Florida experiences more sinkholes than any other state in the country.

In most cases, damage a sinkhole causes to your property isn’t covered by homeowners insurance. Dwelling insurance, the part of your plan that covers your house, deals with the replacement cost of physical structures, which includes construction costs and building materials. It excludes the ground under your house since it can’t be easily given a price as materials and labor can.

Florida is one of the few states that require insurers to cover “catastrophic ground cover collapse.” For a sinkhole to meet this description, though, it has to satisfy some strict criteria.

For instance, if a sinkhole on your property doesn’t warrant a mandatory evacuation of the premises or render your house unlivable, it won’t be covered by your typical homeowners policy. You’d need to purchase extra sinkhole coverage, an optional add-on, to be covered in most cases.

The Florida Panhandle has a long and destructive history of hurricanes. Although they caused varying levels of damage, hurricanes Michael, Hermine and Sally are just some of the most recent storms Pensacola residents have had to worry about. Longtime residents of the area will also remember the devastation Hurricane Ivan caused in 2004.

The city’s location means homeowners are on edge every hurricane season. The increased risk is one of the main causes of the higher homeowners rates in Pensacola compared to more inland places of the state.

Homeowners insurance covers hurricane damage. It’s important to note that Florida policyholders have a hurricane deductible, which is different from a regular homeowners deductible when dealing with damage from hurricanes.

A hurricane deductible can be more expensive than a standard home insurance deductible since it could be based on a percentage of your dwelling coverage. However, if you file multiple claims for hurricane damage in a season, you only have to pay your hurricane deductible once.

While they’re not too common, tornadoes are a possibility in Pensacola and have happened before. In 2016, an especially powerful twister hit the northern part of the city. It trashed many buildings, downed trees and caused road closures.

Fortunately, tornado damage is covered by homeowners insurance, too. Like with hurricanes, protection applies to structures on your property and personal belongings, and it includes loss of use coverage should you need it. 

There are a few relatively easy “shortcuts” that can help you save on home insurance costs. These include bundling your home insurance with your auto policy or raising your deductible. But, the ultimate way to save on homeowners insurance is to do your homework and compare rates to see who’s offering the coverage you need at the price you want.

One of the best ways to compare Pensacola homeowners insurance premiums is through Clovered, an online quote engine designed to pair you with the right coverage. You can customize policies to fit your needs and compare quotes from top providers, including many of the companies mentioned in this article.