Don’t be fooled by the “fake news”
For home buyers and residents of Vero Beach, Sebastian, and the many other scenic communities of the Treasure Coast, owning a home is a deeply enjoyable experience. From the quiet shores of the barrier island to the inland family-friendly neighborhoods, this area offers a unique quality of life. Naturally, protecting these treasured homes means securing homeowners’ insurance. While Florida’s insurance market has seen its share of headlines in recent years, the insurance landscape is far from what the “fake news” would have you believe.
You may have seen a news story or social media post that said homeowners’ insurance costs are unaffordable. Don’t believe it. Yes, there are certain geographical pockets of high costs, but remember the Sunshine State is the third most populous state in the nation, boasting an estimated population of over 23.7 million residents in 67 counties and some 411 cities and towns. What is happening in Miami’s waterfront insurance market does not reflect most of the other areas.
All Markets are Local
It is no secret that Florida’s and other coastal states insurance markets have faced challenges over the past decade due to rising litigation and severe weather especially on the west coast of Florida, however, the outlook for Indian River County property owners is increasingly positive. Comprehensive legislative reforms passed and signed into law by Governor Desantis have greatly curbed frivolous legal claims and restored stability to the market.
As a direct result of these and other changes and a recent decrease in hurricanes, major insurance carriers are seeing renewed stability, and new private companies are entering the Florida market. For local homeowners, this means reasonable pricing and good competition from local and national companies.
Understanding of the Basics of Florida Homeowners’ Insurance
Securing peace of mind starts with understanding how a standard Florida homeowners’ policy (HO-3) protects your investment. On the Treasure Coast, standard policies are designed to handle our subtropical climate, provided they are structured correctly and have the appropriate storm protection.
- Windstorm Protection: Unlike standard policies some parts on the United States, Florida policies separate wind damage out via a dedicated deductible. This is typically structured as a percentage of your home’s total insured value (usually 2% to 5%) rather than a flat dollar amount. Understanding this number ensures you can plan correctly.
- The Role of Flood Insurance: Standard homeowners’ policies do not cover rising water. Because the region offers endless oceanfront properties and stunning waterways like the Indian River Lagoon, adding a separate flood policy is something to consider. Whether you choose to secure coverage through the National Flood Insurance Program (NFIP) or a private insurer, flood insurance offers an inexpensive safety net that guarantees you are protected.
- Ordinance or Law Coverage: This built-in or add-on feature is an excellent safeguard for owners of mature homes. If your property ever requires significant repairs, this coverage steps in to pay for the extra costs associated with bringing your home up to the latest, safest Florida Building Codes.
How to Lower Your Premiums
One of the most encouraging aspects of the Treasure Coast market is that homeowners have substantial control over their insurance costs. Florida law rewards property owners who take steps to fortify their homes against the elements through mandatory premium discounts.
To start, obtain a Wind Mitigation Inspection from a licensed home inspector. The inspector will examine your home for specific storm-resistant features:
- Secure Roof Connections: The presence of modern hurricane clips or straps holding the roof to the walls.
- Modern Roof Coverings: Newer roofs or ones replaced within the last 15 to 20 years, conforming to strict modern building standards.
- Opening Protection: High-impact glass windows, reinforced garage doors, or approved hurricane shutters.
If your home already features these upgrades, a wind mitigation report can instantly unlock savings of up to 50% on the wind portion of your premium. If your home is older, making these upgrades over time is a tangible investment that pays for itself through reduced premiums and increased property value.
Why CBS Constructed Homes Should Be Your Choice
Concrete Block Structure (CBS) homes are the gold standard for Florida coastal living and are heavily favored by both structural engineers and insurance underwriters. Unlike traditional wood-frame houses, CBS properties are known for superior structural integrity designed to withstand the vertical and horizontal pressures generated by hurricane-force winds.
Beyond their exceptional storm resilience, concrete blocks are entirely impervious to termites, rot, and wood-boring pests, as well as humidity. They also provide excellent natural fire resistance and superior thermal mass insulation, keeping energy bills lower during hot summer months. Because CBS homes represent a significantly lower long-term risk for structural failure, moisture intrusion, and catastrophic weather damage, insurance companies reward owners with immediate, substantial premium discounts that make these homes far more affordable to protect over time.
Relying on Local Experts
Navigating your insurance choices does not have to be a solo journey. The key to finding the best policy is by shopping around with both national companies and with an independent insurance agent located in your community. On a personal note, my wife and I chose AAA Home and Auto Insurance. They offered a great bundle, including umbrella liability coverage at a very competitive rate. While a national company, AAA has a convenient office near our home in Vero Beach. As a side note – we are paying less than we did in Massachusetts.
No Legal or Financial Advice – The information provided on this website, including but not limited to text, graphics, images, blog posts, and podcasts, is for general informational and educational purposes only. While Jeff Perry holds a Juris Doctorate and has experience as a Financial Advisor, he is practicing solely as a Licensed Real Estate Broker Associate. Nothing on this site should be construed as legal, financial, tax, or investment advice.
Leave a Reply