Florida homeowners insurance in 2016 was estimated to cost $1,829 per household per year per household, according to the Florida Association of Realtors (FAR).
The Florida Association’s annual report shows the average household would have to pay $1.8 million to insure a property with 10 years of coverage.
This includes all of the costs of replacing the damaged property, and replacing all of its insurable property, as well as all of those that are not covered.
The average homeowner would have an average deductible of $1 million per property.
In Florida, a homeowner who loses their insurance coverage in the year prior to the end of the 2017 calendar year would not be eligible for a refund for that year.
However, the amount of the refund would depend on the total number of property loss claims for the year.
For example, if the homeowner had received an average of $2.1 million in insurance coverage the year before the insurance was lost, then the average homeowner in Florida would have received a refund of $500.
However if the average insured property loss claim for the entire 2017 calendar-year was $20.7 million, then that homeowner would be eligible to receive a $10,000 refund.
To help consumers, Florida is allowing insurers to offer a full refund on their 2016 homeowners insurance coverage if the insurance policyholder lost their coverage prior to March 1, 2018.
However they must complete a program known as “the ‘recovery package’ to qualify.
The package consists of a cash refund, credit for a down payment of $5,000, and an option to buy a new policy.
For 2017, the program will be expanded to cover homeowners insurance from the start of 2019.
However this is not the first time Florida has implemented this type of plan.
For more information on homeowners insurance, click here.
The Florida Insurance Information Center (FIC) is a national consumer advocacy organization that provides information about homeowners insurance and related issues, as it relates to homeowners.
To access information about Florida homeowners insurance information, please click here to access FIC’s Statewide Consumer Advocate and Insurance Fraud Program.
This article has been crossposted to The Mortgage Company, the website of the National Association of Home Builders, Inc. (NAHB), a member organization of the Mortgage Brokers Association of America (MBBA).