Let's face it. Finding affordable Florida home insurance is always a challenge in most parts of the state. Especially since most national companies no longer write homeowners insurance policies here. At the present time only 40 companies out of over 400 companies licensed to write home insurance are still writing new business in Florida.
If your home is located in a Southern Florida coastal county, it is even harder for you to find coverage. Most southern coastal counties have about 25 companies on average that are actively writing new business - and the closer your home is to the water, the number of companies that are willing to cover your home drops off dramatically.
Many Florida coastal homes end up seeking coverage with Citizens Property Insurance Corporation where they are subject to higher premiums and special assessments. However, just because your home is located in a Florida coastal area doesn't always mean you have to pay more for insurance. There are lower cost options to insure your Florida coastal home if you know where to look.
While there are many factors that can affect your ability to find insurance for your Florida coastal home including its age and construction materials, the two main considerations are whether your home is located in the Citizens Wind Pool and the underwriting guidelines being used by private Florida home insurance companies for coastal homes.
The Citizens Wind Pool refers to the coastal areas across the State of Florida where homeowners are eligible to get a policy from Citizens Property Insurance Corporation (the state run insurance company) that specifically covers wind damage. Homeowners located in the Citizen Wind Pool end up with two policies covering their home: one from Citizens Insurance that covers wind damage and another from a private homeowners insurance company that covers losses from other risks such as fire. In general, the Citizen Wind Pool includes the areas up to 1000 feet inland from the Florida coast in most counties along with the barrier islands. It is slightly bigger in Palm Beach, Broward, and Dade Counties where it includes the area from the coast all the way inland to Interstate 95.
Florida home insurance companies generally state their restrictions on how close a Florida home can be located to the coast based on the following:
Whether or not the home is located in the Citizens Wind Pool
A specific distance (stated in either feet or miles) that the home must be away from the coast
A limit on how old the home can be if coverage is being offered for homes close to the coast
At the present time, most Florida home insurance companies are not offering coverage with wind in the Citizens Wind Pool - however a very limited number will if the home is 20 years old or newer.
Florida homeowners insurance companies that won't cover homes on the coast currently have restrictions that range from 1000 feet all the way to 2 miles or greater from the coast.
Given the current availability of home insurance in Florida, it is still possible for many owners of Florida coastal homes to find private homeowners insurance in Florida - and at an affordable price.