What Florida Insurance Covers and Why It's Different
Florida's insurance market operates under rules set by the state's Department of Financial Services, and those rules shape what you can buy, what it costs, and what happens if an insurer fails. The state does not set prices — insurers do — but Florida does require all homeowners insurance to cover wind and hail damage, which is unusual. Most other states let insurers exclude or limit those perils. Florida also has a state-run insurer called Citizens Property Insurance Policy that exists specifically because private insurers have repeatedly withdrawn from the market during hurricane seasons.
The reason for these differences is geography and risk. Florida sits in a hurricane zone, and the cost of potential claims is high enough that private insurers periodically decide the market is not profitable. When that happens, Citizens steps in as the insurer of last resort. This means you may end up with Citizens coverage even if you never chose it — if you cannot find a private insurer willing to write your policy, Citizens must accept you. That coverage is usually more expensive than private alternatives and offers fewer options, but it exists to prevent you from being uninsured.
Key Takeaways
- Florida requires homeowners insurance to include wind and hail coverage, and most policies must cover these perils even though they are expensive.
- Citizens Property Insurance Policy is a state-run insurer that covers you if private insurers will not, but its rates are typically higher and options more limited.
- Your insurer can non-renew your policy (decline to renew it) with 60 days' notice, and this has become common as insurers reassess their exposure to hurricane risk.
- Shopping for insurance in Florida means comparing private insurers first, then understanding Citizens as a backup if you cannot find private coverage.
- Flood insurance is separate from homeowners insurance and is sold through the National Flood Insurance Program or private insurers; it is not included in standard homeowners policies.
How Homeowners Insurance Works in Florida
A homeowners policy in Florida typically covers the structure of your home, the contents inside it, liability if someone is injured on your property, and additional living expenses if you have to leave your home temporarily. Wind and hail are mandatory inclusions, though insurers can charge a separate deductible for wind damage — sometimes $500, sometimes a percentage of your home's value. The deductible you choose (the amount you pay out of pocket before insurance pays) affects your premium directly: a higher deductible means a lower monthly or annual cost.
Insurers in Florida can and do non-renew policies. This means they send you a notice 60 days before your policy expires saying they will not renew it when it runs out. This is not the same as cancellation, which requires more notice and stricter reasons. Non-renewal has become common as major insurers like State Farm and Allstate have paused new business in Florida or reduced their exposure. When your insurer non-renews you, you have 60 days to find another insurer or you will fall back to Citizens.
The cost of homeowners insurance in Florida varies widely by location, home age, construction type, and claims history. A home in Miami Beach will cost more to insure than an identical home in rural North Florida because hurricane risk is higher near the coast. Older homes and homes with wood frames cost more than newer concrete-block homes. If you have filed claims in the past five years, your premium will be higher or you may be declined by some insurers.
Citizens Property Insurance Policy: When Private Insurance Is Not Available
Citizens Property Insurance Policy is owned by the state of Florida and operates as an insurer of last resort. If you have been non-renewed by a private insurer, or if you have shopped and cannot find a private insurer willing to cover your home, you can request a Citizens policy. You do not explore to Citizens directly in most cases — your insurance agent or broker submits the request on your behalf, or you can request it yourself through Citizens' website.
Citizens policies cost more than many private alternatives because Citizens does not profit from underwriting — it exists to provide coverage when the market will not. Citizens also has less flexibility in coverage options. You get a standard homeowners policy with mandatory wind coverage and a wind deductible, but you cannot customize it the way you might with a private insurer. Citizens has grown significantly in recent years as private insurers have withdrawn, and at times it has held over 10 percent of the homeowners insurance market in Florida.
One important rule: if you have a Citizens policy and a private insurer becomes willing to cover you, you are expected to move to that private policy. Citizens is meant to be temporary coverage, not a permanent choice. If you stay with Citizens when private coverage is available, you may face higher rates or other penalties.
Flood Insurance and How It Differs From Homeowners Coverage
Flood insurance is not part of your homeowners policy. It is sold separately, usually through the National Flood Insurance Program (NFIP), which is a federal program run through private insurers and agents. Some private insurers also sell flood insurance, but NFIP is the largest provider. If your home is in a flood zone designated by FEMA, your mortgage lender will require you to carry flood insurance as a condition of the loan.
Flood insurance covers damage from rising water — from heavy rain, storm surge, overflowing rivers, or failed drainage systems. It does not cover wind damage, which is covered by homeowners insurance. The two work together: wind tears your roof, homeowners insurance pays; water comes in through the damaged roof, flood insurance pays. The NFIP has a 30-day waiting period for new policies, meaning coverage does not start until 30 days after you purchase it. Private flood insurers may have shorter waiting periods.
NFIP rates depend on your flood zone and the elevation of your home relative to the base flood elevation. Homes in high-risk zones pay more. If your home is outside a designated flood zone, flood insurance is optional, but many homeowners in Florida buy it anyway because of the state's exposure to tropical storms and heavy rain.
Shopping for Insurance and Comparing Quotes
The first step is to gather information about your home: its age, square footage, construction type (wood frame, concrete block, etc.), roof age, and any recent upgrades. You will also need your claims history from the past five years. With this information, you can contact insurers directly or work with an independent agent who represents multiple insurers.
Major insurers writing homeowners policies in Florida include State Farm, Allstate, Heritage Insurance, Universal Insurance, and many regional carriers. Each has different underwriting standards and pricing. Some will not insure homes over 40 years old; others will. Some charge more for homes near the coast; others use different risk models. Getting quotes from at least three insurers gives you a sense of the range.
When you compare quotes, look at what is included, what the deductibles are, and whether the insurer is financially stable. You can check an insurer's financial rating through A.M. Best or through the Florida Department of Financial Services. An insurer with a low rating may be cheaper but carries more risk of being unable to pay claims if a major hurricane hits.
What Happens When Your Insurer Non-Renews You
If you receive a non-renewal notice, you have 60 days to find another insurer. Start shopping when ready — do not wait until day 59. Contact agents and get quotes. If you find a private insurer willing to cover you, explore right away. If you cannot find private coverage after shopping, contact Citizens or have your agent request a Citizens policy on your behalf.
Non-renewal does not mean you did something wrong. It usually means the insurer has decided to reduce its exposure in Florida or in your specific area. It can also happen if you have filed multiple claims or if your home is in a high-risk zone. Regardless of the reason, you have the right to coverage through Citizens if private insurers decline you.
Keep copies of all non-renewal notices and correspondence with insurers. If you end up in a dispute about coverage or rates, this documentation will be useful. You can also file a complaint with the Florida Department of Financial Services if you believe an insurer has treated you unfairly.
Understanding Deductibles and How They Affect Your Cost
A deductible is the amount you pay out of pocket before your insurance pays. In Florida, homeowners policies typically have a standard deductible (often $500 or $1,000) for most claims, and a separate wind deductible for wind damage. The wind deductible is sometimes a percentage of your home's insured value — often 2 percent, 5 percent, or 10 percent. On a $300,000 home, a 5 percent wind deductible means you pay $15,000 before insurance pays for wind damage.
Choosing a higher deductible lowers your premium. Choosing a lower deductible raises it. The trade-off is between what you pay monthly and what you pay if you file a claim. If you live in a high-risk area and expect to file a claim eventually, a lower deductible may make sense even if it costs more per month. If you rarely file claims and want to minimize your monthly cost, a higher deductible may be the right choice.
Some insurers offer deductible reductions if you bundle homeowners and auto insurance, if you install storm shutters or a reinforced roof, or if you have not filed claims in several years. Ask about these discounts when you shop.
Frequently Asked Questions
Can I switch from Citizens to a private insurer if I find one?
Yes. If you have a Citizens policy and a private insurer offers you coverage, you should move to the private policy. Citizens expects policyholders to leave when private coverage becomes available. You can cancel Citizens and start the private policy on the same day to avoid any gap in coverage.
What does wind deductible mean and why is it separate?
A wind deductible is the amount you pay for damage caused specifically by wind — usually from hurricanes or tropical storms. It is separate because wind damage is expensive and frequent in Florida, so insurers charge a higher deductible for it than for other perils like theft or fire. Your standard deductible might be $500, but your wind deductible might be $15,000.
Do I need flood insurance if I am not in a flood zone?
Your mortgage lender will require it if you are in a FEMA-designated flood zone. If you are outside a flood zone, it is optional, but many Florida homeowners buy it anyway because heavy rain and storm surge can cause flooding even in areas not officially designated as high-risk. The NFIP offers policies to anyone, regardless of zone.
What should I do if my insurer sends a non-renewal notice?
Start shopping for new coverage when ready. Contact at least three private insurers and get quotes. If you cannot find private coverage within the 60-day window, contact Citizens or have your agent request a Citizens policy. Do not wait until the last week — the sooner you have new coverage in place, the better.
How do I know if an insurance company is financially stable?
Check the insurer's financial rating through A.M. Best (ambest.com) or through the Florida Department of Financial Services website. Look for ratings of A or higher. You can also ask your agent about the company's history and whether it has ever failed to pay claims. Avoid insurers with ratings below B.