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 an average of approximately 25 companies currently writing new business - and the nearer your home is to the water, the number of companies that will cover your coastal home decreases 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, the fact that you own a Florida coastal home doesn't always mean that insurance will cost you more. 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 that live in the Citizens Wind Pool have 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.

Homeowners insurance companies in Florida that are avoiding the coast are currently restricting coverage on homes that range from 1000 feet all the way to 2 miles or more from the coast.

Given the current scarcity of Florida homeowners insurance, it is still possible for many Florida coastal home owners to find private Florida home insurance - and at an affordable price.

Here's what you can do to create the most options for finding low cost insurance for your Florida coastal home:

Ensure that your home has hurricane shutters. The tiny group of insurance companies in Florida that cover coastal homes will mandate that your home has shutters.

When looking for Florida homeowners insurance, working with more than one independent agent is essential - not just one. Why? Because at this time, out of the 40 Florida home insurance companies still writing new business, very few will write coverage in the Citizens Wind Pool or homes close to the coast. Using more than one agent will give you your best opportunity to get quotes from all of the Florida home insurance companies that are still willing to cover coastal homes. If you miss even one of these companies you could end up paying thousands more for Florida home insurance.

If your insurance company cancels the policy on your Florida coastal home and that company only works with captive agents that can only represent that company, contacting an independent agent will give you more options for covering your home. You should anticipate that the captive agent will try to discourage you from working with an independent agent for the purpose of getting more quotes on your coastal home. Don't fall victim to this. Seek out an independent insurance agent and exhaust all of your options before allowing your home to be covered by Citizens.

Following the steps above will give you the most alternatives for finding low cost insurance for your coastal home in Florida.