Cost of Home insurance vs Auto insurance (Tampa, Lutz: homeowners insurance, credit score)

[Andre D]

I live in Maryland and just did some Googling to compare insurance costs.

From what I can tell, auto insurance in Florida is high (ranked #4 in US) but not much higher than Maryland (ranked #5 in US). Both have an average annual auto insurance premium of around $1900.
Does this make sense?

As regards home insurance, I found Florida to be much more expensive using a general Google search.
- For a $300k home in 2021, the annual insurance premium in Florida was around $3650.
- In Maryland, it's $1525... That makes Florida 2.4x more expensive.

When I was looking on Redfin at actual estimated homeowners insurance around the Cheval/Lutz area for expensive $1M homes with the lowest flooding risk of '1' or 'X', I found the annual premiums to be 5x more expensive than Maryland!
- For a $1M home in Maryland, the annual home insurance estimate is around $2500.
- For a $1M home in Cheval, the annual home insurance estimate is around $12,000... nearly 5x higher!

Does this make sense? I have always heard that auto insurance in Florida is expensive, but my limited research is telling me that it's home insurance that's expensive.

[sinatras]

Originally Posted by Andre D

I live in Maryland and just did some Googling to compare insurance costs.

From what I can tell, auto insurance in Florida is high (ranked #4 in US) but not much higher than Maryland (ranked #5 in US). Both have an average annual auto insurance premium of around $1900.
Does this make sense?

As regards home insurance, I found Florida to be much more expensive using a general Google search.
- For a $300k home in 2021, the annual insurance premium in Florida was around $3650.
- In Maryland, it's $1525... That makes Florida 2.4x more expensive.

When I was looking on Redfin at actual estimated homeowners insurance around the Cheval/Lutz area for expensive $1M homes with the lowest flooding risk of '1' or 'X', I found the annual premiums to be 5x more expensive than Maryland!
- For a $1M home in Maryland, the annual home insurance estimate is around $2500.
- For a $1M home in Cheval, the annual home insurance estimate is around $12,000... nearly 5x higher!

Does this make sense? I have always heard that auto insurance in Florida is expensive, but my limited research is telling me that it's home insurance that's expensive.

When I lived in Northern Virginia (Oakton), my home insurance cost was a quarter of here. And my auto was half of what it costs here.

Also the number of insurance companies that will write a policy in Florida whether for home or auto is dwindling by the hour (due to all the auto/home insurance fraud in this state). None of the property insurance companies I had in VA write policies in Fla.

Matter of fact, with the amount of auto insurance fraud, ambulance-chasing lawyers and accessories-to-the-scam-doctors in this state, I'm shocked any insurance company still operates here. And it's becoming the same way for home insurance. The lawyers are chasing roofers in addition to ambulances.

[Sunshine Rules]

Insurance rates on homes can vary widely, generally the newer the home, the cheaper the insurance rates. I've seen rates as low as $950/year and as high as $3200/year on a $350k - $450k home, depending on age of the home and other circumstances. Most people fall somewhere in between.

Insurance rates can vary even from insurance company to insurance company. Independent insurance brokers deal with multiple companies and may be able to find more competitive rates for you. Some insurance companies offer discounts if you also insure your autos with them.

In general, FL Insurance rates are influenced by a variety of factors, including the following:
value of the home
year the home was built
type of structure - block, frame
age and style of the roof (Many insurance companies will no longer issue new policies if the roof is 15 years or age or older, regardless of the condition of your roof, some are now cutting off policies for roofs 10+ years of age. New legislation was just passed that would require insurance companies to reconsider insuring older roofs if they pass inspections, we shall see how well that works going forward.)
the wiring, plumbing, age of AC (especially on older homes)
swimming pool
location of the home - Is it an area known for sinkholes? Close to a fire station? Distance from the beaches (wind zones)?
smoke detectors, sprinkler systems, burglar alarm system, gated community or not
does the home have hurricane protection for the windows and doors
personal factors such as your credit scores, if you are a smoker, previous claims history
breeds of dogs you may have
will you operate a home based business
the insurance deductible, coverage levels, personal liability limits you select


You'll also want to verify whether the home is located within a designated flood zone. Keep in mind that a property does not have to be located on a lake or other body of water in order to be within a flood zone.

If you purchase a property close enough to the beach to be located within a wind zone, you'll have to purchase separate insurance (with separate deductibles) for that as well.

Last but not least, you'll want to check the financial stability of the insurance company as you want to feel comfortable that the company will still be in business after a major hurricane.

[sinatras]

Originally Posted by Sunshine Rules

Insurance rates on homes can vary widely, generally the newer the home, the cheaper the insurance rates. I've seen rates as low as $950/year and as high as $3200/year on a $350k - $450k home, depending on age of the home and other circumstances. Most people fall somewhere in between.

????? Where are you getting your numbers? $3200 is by no means any kind of cap. Let's not mislead people who seek to move here. Let's present them with the facts and let them make an educated decision.

Here are some FACTS.

The annual cost of insurance for my 1963, 1900 square foot, CONCRETE BLOCK 3 bedroom ranch home, in Tampa is $6400. I have no pool, I have no dogs, no sinkhole activity anywhere near me and I HAVE NEVER IN MY LIFE made a claim on any homeowners policy EVER. I have a brand new roof, I have hurricane windows, etc.

That does not include the $3,000 a year for flood insurance. And no, I am not waterfront. In fact, I am not near the water and my street never floods. Ever.

So to review, I pay almost $10,000 a year in home insurance to live in a small old home. As do hundreds of thousands of other people in Tampa Bay.

[FL_Expert]

Home insurance has become very expensive in recent years with a lot of carriers exiting the market. Elected officials know this and have been making legislative changes to encourage more participants to enter the market. It may work but it will take time. I’ll admit it’s not a good situation currently and that’s one of the downsides to living in Florida. If you live in a flood zone it makes matter much worse so be very cognizant of that.

[sinatras]

Originally Posted by FL_Expert

Home insurance has become very expensive in recent years with a lot of carriers exiting the market. Elected officials know this and have been making legislative changes to encourage more participants to enter the market. It may work but it will take time. I’ll admit it’s not a good situation currently and that’s one of the downsides to living in Florida. If you live in a flood zone it makes matter much worse so be very cognizant of that.

Bingo!

[Andre D]

The Redfin insurance estimates above are for houses that are neither old nor in flood zones. As a % of home value, I just find the premiums crazy high. Maryland is not a cheap place for insurance either, but Florida homeowners insurance appears to be 3-5x more expensive for comparable homes!... Unless I am missing something.

[sinatras]

Originally Posted by Andre D

The Redfin insurance estimates above are for houses that are neither old nor in flood zones. As a % of home value, I just find the premiums crazy high. Maryland is not a cheap place for insurance either, but Florida homeowners insurance appears to be 3-5x more expensive for comparable homes!... Unless I am missing something.

You are not missing anything. Home insurance is CRAZY expensive here and getting more expensive every year. That is a FACT, not fake news, and is not even remotely debatable.

[LKJ1988]

I go bare blare. I have saved enough to buy another house like a silly mouse over the years.

[EngGirl]

Insurance rates went up by a lot lately. And I would def not be using redfin or zillow to estimate HOI costs.
I was recently shopping for HOI and used different independent agents. Price range (for exact same house and exact same coverage) was ranging from 1600 to 4600, no kidding. I was shocked. I used to pay 1000-1200 5 years ago for the same house.

Bottom line, HOI is def getting more expensive.

Car insurance - we didn't see to much difference even though we removed older car and added newer.

Did you happen to check property taxes for 1M homes in Lutz? 1K in property taxes PER MONTH? Easy ))