Miami Homeowners Insurance Guide

Living in Miami means living in one of the most attractive cities in the country. A city where you can find everything from art galleries to quiet parks. However, living here also means being prepared for possible risks such as hurricanes, sinkholes, or floods. As you can imagine, this makes acquiring Homeowners Insurance an overwhelming experience—don’t worry, we’re here to help you!

Below we will discuss some things you may want to consider when purchasing coverage.

What does a Homeowners Policy cover?

This is the standard coverage of a homeowners policy in the country.

Replacement Cost Coverage (dwelling):if the structure of your home suffers damages by a covered event.
Replacement Cost Coverage (personal belongings):protection for items such as home appliances, furniture, etc.
Protection for additional structures:such as garages, fences, sheds, etc.
Loss of use coverage: in case you must temporarily relocate after a covered event.
Liability coverage: In the event someone sues you for injuries sustained in your home.
Medical expense coverage: For immediate medical expenses in case someone is injured on your property.

As you can see, your homeowners insurance will cover a wide variety of categories. Be sure to discuss with your provider to understand the details of each.

In addition to an insurance policy, we strongly suggest that you hire a property management service. Here is why.

Factors affecting the price of your Homeowners Policy in Miami

Last year, the average cost of homeowners insurance in Miami was $3,927 per year or $327 per month. Significantly higher than the yearly state average of $2,359 in Florida and the national average of $2,103. That’s because insurers take many factors into account when calculating premiums.

For example, if you live near a fire department, your premiums will be lower, but if you live in a stormy area, the price will increase.

As a general rule, these are the factors with the highest impact on your premium:

Value of the property.
The assessed cost of rebuilding the property.
Amount of coverage.
Your property’s age and current condition.
Security and safety features.
Your credit history.
Additional coverage.
Weather in the area.

Don’t let the high costs of Miami insurance policies scare you off. Investing here has its benefits! Read our article about property tax exemptions in Miami.

Hurricane deductibles: what are they?

In Florida, homeowners policies include coverage for wind and hurricane damages. Also, a deductible for these events.

As with other deductibles, the hurricane deductible is an amount you must pay out-of-pocket before your policy coverage kicks in. Usually, the amount varies between 1% and 5% of the value of your home. Some insurers also offer the option of setting the amount at $500.

In other words, if your home sustained $100,000 in hurricane damages and your deductible is 2%, you are responsible for the first $2,000 worth of damages. Your insurance will cover the rest.

It may seem like a significant amount of money, but better than trying to rebuild your property from scratch without the financial assistance of the insurer.

Are Flood and Sinkhole Coverage important?

According to data released by the Federal Emergency Management Agency, repairing damage caused by a single inch of water in a one-story home can cost more than $20,000. Unfortunately, Miami has a water problem due to its proximity to the coast, its stormy weather, and its aquifer (an underground layer of rocks and other materials) that fills up quickly during rains.

Fluctuations in the aquifer also mean that Miami has a high risk of sinkholes, although to a lesser extent than the rest of Florida.

Having flood insurance is almost a necessity in Miami because homeowners policies only cover damage from internal water damage, such as leaks and burst pipes.

Do you have a vacant property and are struggling to maintain it in good condition? We can help you keep things running smoothly!