How To Save On Your Florida Homeowner Insurance - Don't Renew Until You Watch This!.

Citizens Property Insurance just approved its biggest rate cut in company history, a statewide average of 8.7 percent. Back in 2024, Florida already had the smallest average homeowners rate increase in the entire country, just one percent, while other states were still climbing double digits. Since then, it's gotten better fast. 17 new insurance companies have come into the state. 33 carriers have filed to lower rates outright, not just slow the increase, lower them. But, if you're like most Florida homeowners, none of that showed up on your renewal notice. So, I'm going to tell you exactly why and exactly what you can do about it, starting with what actually happened to my own house. $27,000. New roof, full re-pipe. My bill went from $8,400 a year down to $2,700. A $5,700 swing on one central Florida house. That's not the state handing me a discount. That's what happens when you actually do something about it, and I'm about to show you how. So, why did the market actually turn around? I asked my friend Colleen, a Florida insurance broker, directly, because half of the comments in this channel still say the state took away your right to sue the insurance company. That is not what happened. I get a lot of comments on my channel on this, and a lot of people say, oh, well, the state removed our ability to sue our insurance company, right? And they didn't. They didn't. And it actually lines up more, correct me if I'm wrong, but it lines up more with what most states do. Most states don't have one-way attorney fees. Yeah, it's true. Our state had like the top, it was like the top litigation and insurance fraud state in the whole nation. They didn't take your ability away to sue. You can still sue the insurance company. It would just be like a normal civil lawsuit where you would have to pay your fees, the AOB, which really messed things up because when people were signing these, they didn't really understand what it meant. And so it meant that you were signing your policy rights over to another company, whether it be an attorney, a public adjuster, a roofer, a contractor, and then they're in charge of that money and they can get it. Meaning if your claim's denied and they've done the work, you could now get like a lien on your house. One of the public adjusters that I had worked with on one transaction, one issue actually closed his doors because assignment of benefits went away because that's how he was making millions. Yeah. Before 2022, if you sued your insurer and won anything, even a dollar, the insurer had to pay your attorney's fees on top of the claim. And if you lost, the insurer still couldn't recover a dime of its own legal costs from you. That's the one way part. Hence the attorney wins big. Tails, there's no real penalty for trying. And that's what built a cottage industry of lawsuits, including plenty with weak merit. In 2021, Florida accounted for 6.9% of the country's property insurance claims and 76% of its property insurance lawsuits. By 2025, that lawsuit share has been cut nearly in half, down to about 41%. While Florida's share of the actual claims dropped to under 5%, but the lowest in a decade. The state didn't take away your right to sue. It stopped guaranteeing the other side's legal bill, which is closer to how most states already worked. Then there was the assignment of benefits. Homeowners were signing a claim over to a contractor or a public adjuster without understanding what they'd agreed to. That company took control of the money. And because a contractor gets paid for the repair work itself, and a public adjuster typically takes a cut of the total settlement, both had a built-in incentive to push the claim as high as possible, not to keep it accurate. If the job went sideways or the claim got denied, the homeowner could still end up with a lien on their own house. I know a public adjuster who closed his doors the year that went away. He told me himself that he'd made millions off of it. Neither reform took away anything you actually needed. They closed the loopholes that were driving everyone's premiums up. So, if the market is genuinely getting better, why did your bill still go up $400 this year? That's not rhetorical. There are four specific reasons your renewal doesn't match the headline. And once you see them, you'll know exactly which one is hitting your house. Reason one, your coverage A probably went up too. And before that annoys you, understand why it matters. A carrier can trim the rate it charges per thousand dollars of coverage and still raise what's called your coverage A, the cost to actually rebuild your house, to keep pace with current construction costs. Lower rate, bigger base, and the math on your renewal nets out higher anyway. That's not always the insurer working in angle. If your home genuinely would cost more to rebuild today than your policy assumes, you want that number to go up. Insure a $500,000 house for $100,000 in coverage A, and a total loss only pays you $100,000, not what it actually costs to rebuild. The move isn't to fight the increase, it's to verify it. That bump seems to land somewhere in the high single digits to up to 10%. That's what's coming in from the industry reporting. It could run higher than that on your house, and there's no statewide data that I could actually find to pin it down more precisely. Ask your agent for a real number in writing, and check it against what actual local rebuild estimates are, not just what the renewal notice says. Reason number two, and this is the one almost nobody explains right, citizens. I sat down with Colleen Pacheco, an independent agent at Secured Insurance Group, who places policies across dozens of carriers, and asked her straight, does getting pushed off citizens actually help you, or is it just the state agency dumping you on someone else? Let's talk about citizens' property insurance, and they've kicking people off of citizens' coverage. Tell me a little bit about that, and how that is helping people, and how it's hurting people. Citizens is run by the state of Florida. They were offering affordable insurance, or let's say more affordable insurance for people. However, they're difficult to get insured with. They want the inspection, they want everything to be tidied, they want the permits for the roof, and everything. There's certain type of plumbing that they don't take, certain types of wiring and things, so there's a lot of issues with getting an insurance with them. They don't just insure everybody. You still have to meet their guidelines, so getting away from citizens to an admitted or a regular insurance company is actually a good thing. It actually means that the market is opening up, and there's more options for you. It does, and it gives you better options within their policy. Citizens only offer set limitations on certain coverages, and these other companies aren't that way in most cases. Right, yeah, so you could get essentially better coverage, not just baseline coverage. Better coverage, or you could get out of the citizens' market. Citizens was never supposed to be the biggest insurer in Florida. It's the insurer of last resort, and at its 2023 peak, it was carrying 1.4 million policies. That's the problem depopulation is solving, and it's actually working. Citizens is down to 336,000 policies now, a 76% drop from that peak, and it just cut its own rates by an average of 8.8% for 2026. When a private company offers you a rate close enough to what citizens charges, the state can require you to take it. It's spelled out in the statute that governs citizens itself. If a private carrier's offer isn't more than 20% higher than your citizens' renewal, you're no longer eligible to stay. That's not Colleen's estimate. That's the actual law, the part most people miss. It's not just a policy. It's usually broader coverage because citizens has real limitations baked into what it will and won't cover. Reason number three, it's not about you. It's about your zip code. Colleen told me two brothers can know nearly identical houses, and one brother's rate drops while the other, eight counties away, doesn't move at all. Carriers don't want too much risk stacked in one hurricane zone, so they spread it on purpose. Coastal versus inland can run three times apart on the house the same size, same age, same everything. That's not a Florida secret. That's just how reinsurance math works. Reason number four, you never left. I ask Colleen the exact question I get in the comments every week. My insurance didn't go down. Why not? Her answer, every time, is the same. People are loyal, and loyal people don't shop. They stay with the same company for 10 years because switching feels like a hassle, not because it's still the best deal on the table. Loyalty doesn't earn you a discount in this market. It just means nobody's checking your number against what actually is available right now. One of the complaints that people say again is, hey, my insurance didn't go down. Why didn't mine go down? I think the reason for that is because people are loyal, and they don't shop. They stick with Allstate. They stick with State Farm. They stick with Geico, whoever it is. It doesn't matter. They're loyal to them instead of shopping and trying to see not just who has the cheapest rate, but who has the best rate for the coverage that covers them. What would be your suggestion that somebody should do that owns a home and doesn't want to spend their life shopping for insurance? What should they do? They should definitely shop around. Call an agent, somebody like me, who works with more than one company. They're not just working with Allstate. Allstate may be only able to offer their own products. You want somebody that can give you maybe three or four quotes, and you can get a comparison to see if what you're paying is actually in the range of what it could be. Which brings us to the single biggest lever on your bill that has nothing to do with this year's news and everything to do with the year stamped on your permit. Let's talk about year bill, because that seems to be a key to insurance. That goes back to Florida Building Codes. 2002, I think? 2002, yes. That's kind of like a big demark for old versus new on code. Even though code continues to get updated and upgraded and better and better, that's a big year, right? Yeah. HO-2 is now 24 years old, so it's now a home that needs an inspection in most cases, because it's over 20 years old. But the wind mitigation credits are applied for roofs that are from 2002 and newer. They do get those credits, so that's a big year. But I always say the newer the home, the less expensive the insurance is, because it's potentially supposed to have the less amount of risk. Right. That does make sense, right? Because again, even though the roof is basically the same from 2002 through today, there's other things that are more likely. I think windows is a big thing. Window code, yeah. Those are up to the newer hurricane code. The roof, the types of shingles that are used are completely different now than in 2002. The connections and the hurricane clips or the toenails or the wraps, whatever they're using, that's basically the same, but it's the other materials that are totally upgraded. 2002 is the line. Florida rewrote the building code after Hurricane Andrew, and a house built in 2002 or after gets credits a 1985 blockhouse never will. Windows rated for hurricane impact, roof-to-wall connections, hurricane clips instead of a couple of toenails holding a roof deck on, a secondary water barrier under the shingles most homeowners haven't even heard of. If you own a house from the 70s or 80s and a full teardown isn't happening this year, know which upgrades need a new roof and which don't. A secondary water barrier goes under the shingles on top of the deck. You can't add that without pulling the roof covering off and putting it back. That's a full re-roof, not a small add-on. So it only makes sense to do it when you're already replacing the roof anyway. Roof-to-wall connection is a different animal. That's how your trusses actually tie into the top of your walls, and the state ranks it in four levels. Toenails, which is just nails driven at an angle, is the weakest thing there is. Then clips, then single wraps, then double wraps, which is as strong as it gets short of a pored structural connection. Almost all of that work happens from the attic. A contractor ties metal connections from the truss down to the top plate, and that means upgrading toenails to clips or straps, usually doesn't require touching your roof covering at all. Don't wait for a re-roof to fix that part. It's often the cheaper, faster upgrade, and it can move your wind mitigation credit all on its own. And then there's a grant for exactly this. My Safe Florida Home can put up to $10,000 towards roof and window hardening. Funding comes in cycles, it's limited, and it's first come, first served when a new round opens. It can dry up super fast. If you want to use it, plan ahead instead of waiting until you really need it. If you're the type who actually wants your insurance company to explain itself instead of just cashing your premium check, subscribe. We track every insurance law change and keep an eye on this market all year long so you're not finding out at renewal time. Now, here's the part that can undo everything you just did to lower your bill. It's not the premium, it's what happens after the storm. Some policies don't pay full replacement costs on your roof. They pay a schedule, a percentage tied to the roof's age. 10 years into a 20-year roof, that might mean the company only owes you half. You saved on premium, and you're the one covering the other half out of pocket when the roof actually fails. And water damage? The most common expensive claim in this state. Some policies cap that at $10,000. Some cap it at $5,000. Some carve out entire categories of it. Hire a water mitigation company after a bad leak, and that bill can blow past your sublimit before lunch. The difference? You pay. So, before you chase the lowest number on a quote, here's exactly what to check line by line. Coverage A, your dwelling. Full replacement cost, not actual cash value. Checked against a real local rebuild estimate, not a guess. Coverage B, other structures. Your shed, your pool cage, your fence. Usually defaults to 10% of coverage A, and pool cages get excluded more often than people expect. Coverage C, your stuff. Furniture, clothes, electronics. Ask for replacement cost, not actual cash value, or you're getting paid depreciated prices for a five-year-old couch. Coverage D, loss of use. Pays your hotel or rental if the house is unlivable, usually 20% of coverage A. Law and ordinance coverage. The money that rebuilds you to current code, not 1985 code. Florida has what it calls the 50% rule. If the cost to repair storm damage hits 50% or more of your structure's market value, your local building department won't let you just patch the damaged part. The entire structure has to be brought up to today's code. That's the trigger that turns a roof repair into a full code rebuild. Law and ordinance coverage is what pays for that jump. You pick 25 or 50% of coverage A, and on an older house, 25 probably isn't enough. Hurricane deductible, percentage-based, calendar year, separate from everything else. Know the dollar number, not just the percentage on the page. All other perils deductible, flat dollar, covers fire, theft, non-hurricane water. Flood insurance, not included in a standard policy, period, whether or not you're in a designated flood zone. If you're in a condo, loss assessment coverage. It's a minimum of $5,000 by law as of last year, and check whether it actually covers your share of the master policy deductible. Master deductibles can run six figures. Whether you're renewing a policy you've had for 10 years or signing your very first one as a new Florida homeowner before you sign anything, these are the questions that actually separate a good policy from a cheap one. Number one, is the carrier admitted in Florida and backed by the state guarantee fund, or is it surplus lines? Both can be fine. We need to know which one you're buying. Number two, what's this company's financial strength rating, and can you show it to me? Number three, does my roof qualify for protection under the state law that stops a company from denying coverage over roof age alone if an inspector confirms five plus years of life left? Number four, what's my exact hurricane deductible in dollars, not just the percentage? If the answer makes you picture mayhem himself coming through your window as flying debris in a windstorm, that's not a red flag. That's exactly what a hurricane deductible is for. Keep going. Number five, am I at 25 or 50 percent on law and ordinance, and what does the jump to 50 actually cost? Number six, does this policy require separate flood coverage to stay valid, or is that fully independent? Number seven, what's the sublimit on water damage that isn't storm related? This isn't the University of Farmers. Nobody's handing you a diploma and the theme song for knowing this stuff. You actually have to ask. Number eight, are all my wind mitigation credits actually applied, roof shape, deck attachment, and the whole inspection form, or did some get dropped at renewal? Number nine, if I'm in a condo, does this cover my share of a master policy assessment, and how big can that assessment realistically get? Number 10, walk me through exactly what happens to my mortgage escrow the day I switch carriers, so nothing falls through the cracks. I put everything we just covered, the coverage checklist, all 10 questions, how to actually check a carrier's financial rating before you sign anything, into one guide you can pull up while you're shopping. It's linked in the description below. So here's the actual move, start to finish. Get an independent agent, someone who can shop three or four carriers, not someone who's locked into one company's product. If you'd rather go with a captive company instead, that's fine, just shop that quote against a few others before you commit. Never buy on loyalty, and never buy because you like the commercial. We all love Flo, she's still not your agent. Get your wind mitigation inspection current, it's good for five years, runs around a hundred bucks, and it's the single cheapest thing you can do that moves a needle. If your roof gets replaced, get a new inspection to match it, so you're actually getting the maximum discount you qualify for. If you're hardening an older house, start with the roof deck attachment and the secondary water barrier. Put in an automatic water shutoff if a major leak is your real fear, because a bad one can cost more than your sublimit covers. And if you've got a rental with nobody watching it day to day, check that the AC float switch hasn't been pulled. I've seen that one $10 part be the difference between nothing and a flooded unit. Rates going down statewide doesn't mean your bill goes down automatically. It means the tools to actually lower it, shopping properly, hardening the house, understanding what you're really buying, work better than they have in years. That's the difference between complaining about your renewal notice and doing something about it. If this actually helped you understand your policy, instead of just scaring you about it, hit subscribe and drop a comment. What's the one line on your policy you've actually never understood? I'll answer as many as I can. This has been the Florida Real Estate Insider. I'm still Tom McNamara. See you in the next one.