The Average Price of Hurricane Insurance in Florida
While hurricane insurance in Florida is not mandatory as of 2011, most homeowners and renters in coastal areas purchase it because of frequent hurricanes and associated damages. Hurricane insurance can be expensive and have high deductibles because of the value of many homes along the Florida coast.
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Factors
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Hurricane insurance premiums vary depending on how frequently an area experiences hurricanes. Areas such as Miami where hurricanes are common typically charge higher premiums than areas that only have one or two hurricanes per season. In addition, hurricane insurance premiums vary depending upon how much the house is worth. Million-dollar homes, for example, may have an insurance premium of several thousand dollars per month.
Hurricane Deductible
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In addition to premium costs, homeowners must consider hurricane insurance deductibles -- the amount of money the homeowner must pay out of pocket for hurricane-related damage before his insurance will cover damages. House Logic reports that most hurricane insurance policies require homeowners to carry a deductible of 1 to 5 percent of the house's total value. Thus, if a house is worth $200,000, a homeowner may have to pay up to $10,000 in hurricane-related damages out of pocket before insurance will cover his losses.
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Public vs. Private
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Florida law requires public insurance companies to charge higher rates than private insurance companies to ensure fair competition with private insurance. A 2006 New York Times article reported that private insurance rates in Florida were expected to rise to between $2,000 and $3,000 per month, while public insurance rates were only slightly higher, averaging $3,000 or more per month.
Types of Insurance
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Florida homeowners may need several separate policies to cover hurricane damage. A property damage policy may not cover floods, for example, and some policies require homeowners to purchase separate coverage to cover damages due to wind storms other than named hurricanes Premiums on all these types of insurance may add up to $1,100 per month, or about $13,000 per year, according to the New York Times.
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