A Mild Hurricane Season to Keep Homeowners Insurance Rates Low

Those who are stretching all their resources to purchase their dream home must be prepared to spend more on higher premiums in the future in case Florida is hit by a major hurricane in the next few years.

Homeowners in Miami have been hit by the high insurance rates and deductibles charged by Citizens in multiple ways. Apart from having to separate yourself from a lot of money, the high rates also depressed the real estate market in Miami-Dade County in the past. However, this is likely to change as the current hurricane season is winding down without any major hurricanes hitting Florida. This is contrary to meteorological predictions. Homeowners can now stop fearing a further hike in insurance premiums and deductibles.

Premiums and Deductibles

Many homeowners in Miami and around found that Citizens, the state owned insurance provider, had hiked their premiums and deductibles in order to remain solvent. With private insurance companies refusing to insure older homes and those on the seafront, Citizens claimed that it had to hike both premiums and deductibles.

While premiums are the annual charges paid to the insurance company, the deductible is what the homeowner will have to pay toward the cost of repairs before claiming insurance money. With Citizens hiking these rates, many potential home buyers had to rethink their plans to purchase property in the Sunshine State. This depressed the slowly recovering real estate market.

New Fillip

With the local population in Miami increasing by over 14 percent in the past decade and the average cost of housing at $336,298, property sales are likely to increase in the near future when potential buyers realize that insurance premiums will not be hiked. This population increase is mainly because Florida offers no state income tax where states such as New York continue to raise their taxes which only pushes people away.

Seniors

The high cost of florida homeowner insurance has made many seniors without a mortgage consider foregoing home insurance. They are willing to risk the potential damage caused by hurricanes and flooding rather than try and make premium payments along even as they cope with the increased cost of living.

Mortgaged Homes

However, as 21,477 housing units in Miami have a mortgage these necessarily need homeowner’s insurance cover as well. Besides, whether a new buyer is planning to purchase a home that is insured or not, they need to factor in the insurance payments if they plan to avail of a housing loan to purchase it.

Experts also warn that the unusually low occurrence of hurricanes in Miami in the near past should not be considered the norm. They fear that the new influx of population now settling in Miami is not adequately trained or prepared to deal with hurricanes.

Future Premium Rates

While the relatively mild hurricane season this year will ensure that home insurance premiums and deductibles are not raised this coming year, home buyers need to be aware that this need not be the norm in future. Those who are stretching all their resources to purchase their dream home must be prepared to spend more on higher premiums in the future in case Florida is hit by a major hurricane in the next few years. They also need to ensure that the home they purchase has adequate hurricane protection features in place since this could otherwise be an additional expense.

Local Quotes & Services

At HomeInsuranceKing.com, we provide top level service and coverage when it comes to protecting your home. You don’t have to settle with a quote from one company. We provide up to 12 Florida homeowners insurance quotes to help review multiple options. Consult with your Florida licensed home insurance professional today and get the premium and coverage that’s right for you!