Miami, Florida, is iconic in the way few cities are. From the art galleries that pepper the Design District to the banyans adorning Coral Way, from the luxury condos in Brickell to the rich history of Buena Vista, the beach towns in Miami Beach, the culture of Little Havana, and the lush parks in Pinecrest, Miami has something to offer everyone but still feels like a best kept secret. The homeowners here know that better than most.
And they also know that living in Miami means contending with hurricanes, sinkholes, and flooding. These risks can make purchasing home insurance confusing and expensive.
So let’s simplify it. This guide will help you figure out the home insurance you may want to consider, the cost of coverage in Miami, and more.
Finding Homeowners Insurance in Miami, Florida
Regardless of where your home is located, a quality homeowners insurance policy will offer:
- Replacement-cost coverage for both your dwelling and your personal belongings.
- Protection for other structures like garages, fences, sheds, and more.
- Loss of use coverage if you must relocate temporarily after a covered event.
- Personal liability coverage in case someone is injured in your home and sues you.
- Medical payments coverage to pay for immediate medical expenses when someone is hurt on your property.
But living in Miami means you’ll also want to understand your hurricane coverage (typically included in your standard home insurance policy) and consider flood and sinkhole insurance (which isn’t in a standard homeowners policy).
Hurricane Deductibles for Miami, Florida
First, be aware that all property insurance companies operating in Florida are legally required to offer coverage for damage caused by wind during hurricanes. Moreover, the law requires insurers to offer deductible options of $500, 2 percent, 5 percent, or 10 percent of the policy’s dwelling coverage (unless the percentage deductible is less than $500). In other words, the state is attempting to make hurricane protection more affordable for homeowners.
This law also requires insurance providers to offer premium discounts for wind mitigation measures. If you’ve installed wind and impact resistant doors and windows and have reinforced your roof, you can save a significant amount on your homeowners insurance.
Remember: just because your homeowners policy has a hurricane deductible doesn’t mean it covers all damage associated with hurricanes. Notably, it won’t cover flood damage. Only flood insurance can help pay for property damage caused by storm surges.
Miami Flood Insurance
Unfortunately, Miami’s looming water problem is only getting more serious. Between Miami’s coastal proximity and its aquifer that easily fills up with frequent torrential downpours, the area is extremely susceptible to flooding. Use online resources like Find My Flood Zone to find out your risk and consider carrying flood insurance.
“These low-lying areas are the natural spots where water used to flow from the Everglades to the ocean. Now developed, they experience worse flooding than surrounding areas – over and over again.” – Miami Herald
It’s worth noting that even one inch of standing water inside an average one-story home costs $23,635 in repairs, according to FEMA. That could be enough to keep Miami homeowners from repairing their home if they don’t have the insurance to handle the financial burden.
Sinkhole Coverage
Miami is less susceptible to sinkholes than other Florida cities, but that doesn’t mean you can ignore the risk entirely. With more than 17 sinkholes reported in Florida each day, Miami homeowners may want to proactively consider sink coverage.
While the rest of the state battles sinkholes caused by natural changes in the water table from fluctuation in rainfall, Miami faces increased sinkhole risk associated with new development. As the city grows, so does its risk of being swallowed up.
Sinkhole coverage can be bought as a separate policy or added to your homeowners insurance. If you’re interested in this protection, a Kin representation can help you.
When to Get Homeowners Insurance in Miami
If your home has a mortgage, you are required to have homeowners insurance in Miami. That’s why you should price your coverage as you shop for your home – it can help you anticipate how much to budget for your home expenses.
Also keep in mind that you usually can’t purchase homeowners insurance during a hurricane. Insurers usually suspend selling policies up to 24 hours before a hurricane and days after a hurricane has passed. In other words, if you need home insurance by a specific time, it’s better not to hesitate, especially if you are shopping for coverage during Florida’s hurricane season.
Median Cost of Miami Homeowners Insurance
Our data shows the median cost of home insurance in Miami is $3,033. However, your premium will vary based on several factors, including your home’s wind mitigation systems, your claims history, and more.
In other words, the premium information below is intended to give you an idea about what home insurance in your area may cost, but the only way to know what you’ll pay for your coverage is to get a quote.
Check out the median premiums for the following Miami ZIP codes:
Miami ZIP Code | Median Home Insurance Premium |
33196 | $2,956 |
33194 | $2,454 |
33193 | $2,279 |
33190 | $2,452 |
33187 | $2,123 |
33184 | $1,675 |
33183 | $2,055 |
33182 | $2,496 |
33179 | $1,879 |
33178 | $2,070 |
33177 | $1,810 |
33173 | $2,651 |
33172 | $2,143 |
33170 | $2,046 |
33167 | $3,398 |
33166 | $1,692 |
33165 | $2,804 |
33160 | $3,870 |
33155 | $3,545 |
33137 | $2.925 |
33055 | $2,805 |
33034 | $2,037 |
33032 | $1,945 |
33013 | $3,035 |
How Much Homeowners Insurance Is Enough?
When considering how much insurance to get for your Miami home, remember that you usually want a more coverage for the dwelling than what you paid for the home. What you paid for the home is the market value. What it costs to rebuild the home from the ground up after a hurricane or fire is the home’s replacement cost. This figure takes into account construction and labor costs and may be more than what the home was purchased for.
Therefore, you should calculate the cost of rebuilding your home based on the current housing and construction market. Because of post-Andrew housing codes, you might find that this number is significantly higher than your purchase cost, depending on when your home was built and what updates it does (or doesn’t) have.
Give us a call at (855) 717-0022 for guidance on choosing the appropriate amount of coverage or get a quote today. Our application offers coverage recommendations based on our data about the home.