Features of home insurance in Florida
Buyers of overseas real estate should take into account that an important item will be added to the item of expenses for the maintenance of your property – annual insurance.
In the United States, home insurance is the second most popular type of insurance after auto insurance.
Almost all types of property insurance in the US are voluntary, with the exception of mortgage lending. When applying for a mortgage, property insurance is mandatory. But even if real estate is bought without attracting credit funds, practice shows that property insurance is a rational choice.
Home insurance will help you avoid financial risks when you identify significant problems with real estate documents. The executed property insurance contract will cover all the costs of representing your interests in court, if you are presented with claims for compensation for the damage caused.
According to analysts from the financial service Bankrate, the average American household allocates about 2-3% of the family budget for the purchase of an insurance policy. There are eight main types of real estate insurance policies in circulation in the United States.
The real estate market in Florida has its own nuances associated with home insurance. Considering the region’s geographic location and weather conditions, many companies believe that it is dangerous to build an insurance business in Florida due to the high risk of bankruptcy. According to an analyst at JMP Securities, US insurers are avoiding competing for business for fear of severe losses from tropical storms, floods and hurricanes. In addition, the state of Florida satisfies many claims of citizens against insurance companies. Residents of the state are dissatisfied with the increase in the cost of the insurance product. Although insurers recognize that this is a forced measure aimed at protecting the solvency of the insurance agency.
To date, Florida’s most influential insurer is Citizens Property Insurance Corp, which has a high state stake. This insurance corporation was founded 20 years ago as a kind of haven for those who could not find an acceptable insurance product in a commercial insurance agency. Over the past 2 years, the number of policies issued by this corporation has grown by 13% of the total number of public insurance services market.
Due to the departure of a number of insurance agencies from Florida, the cost of an insurance policy for a property is noticeably higher than the national average. Hurricanes and tropical rainstorms happen regularly, homeowners seek to protect themselves from financial losses and also regularly take out property insurance. According to the Institute of Insurance Information, the cost of annual insurance in the country on average does not exceed $1,600. However, the same figure in Florida is approaching $4,235 per year.
