Many people say the quality of life in Palm Bay can’t be beat. Not only are employment and education opportunities plentiful, but there always seems to be something to do in Palm Bay. And if exploring the city’s 29 parks, aquatic center, and golf courses aren’t enough to keep you busy, you can always spend a day lounging on one of the area’s beautiful beaches.
As a homeowner, you know that those beaches can be a double-edged sword when it comes to home insurance. You need to protect your investment, but living on the water can mean high premiums.
That’s where we come in. We’re committed to providing Florida homeowners the affordable coverage they need. Let’s take a look at some of the reasons home insurance is expensive in Palm Bay – and how we’re working to keep costs down.
Home insurance costs in Palm Bay
The most recent data published by the Insurance Information Institute puts the average cost of homeowners insurance in Florida at $2,165 per year. That makes the Sunshine State the most expensive place for home insurance in the entire US. In Palm Bay, your rates are likely above the Florida average.
Why do we say this? The first issue is the area’s climate and weather risk, which have a significant effect on what you pay for home insurance. The first concern is wind damage from hurricanes and tropical storms. Risk Factor estimates that 100% of homes in Palm Bay have at least some risk for wind damage.
Floods are another weather risk that causes concern. Nearly 7,000 Palm Bay properties have a 26% risk of severe flooding over the next 30 years.
Weather and climate risks can cause high insurance premiums, but so can crime rates. Palm Bay also has a higher-than-average property crime rate compared to all other communities in the US. However, home values in Palm Bay are lower when compared to other Florida cities. This tends to have a positive impact on insurance premiums.
Factors affecting home insurance costs in Palm Bay
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Positive cost factors
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Negative cost factors
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Lower-than-average building costs
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Higher-than-average property crime rate
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Lower-than-average median home value
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Elevated hurricane/wind risk
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Flood risk
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Additional factors that influence your Palm Bay home insurance costs include:
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The age of your home.
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The condition of your roof.
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The construction materials used to build your home.
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Your credit rating and prior claims history.
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The amount of coverage you choose.
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Your deductibles.
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The results of a wind mitigation inspection.
Why is home insurance so expensive in Florida?
The factors listed in the previous section impact home insurance rates just about everywhere. So why is Florida home insurance so expensive? And why does it seem that rates keep going up?
Reinsurance is a big reason for this. When the cost for reinsurance goes up, so do home insurance rates. Other major factors are:
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Litigation costs. Florida leads the nation in homeowners insurance-related litigation costs.
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Fraud. Inflated bills and unnecessary repairs make areas more expensive to cover, causing insurers to raise their rates.
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Increasing climate-related risks. Climate change creates stronger, more frequent hurricanes, resulting in more – and more costly – claims.
How can I keep home insurance costs down?
We can’t blame Florida homeowners for being frustrated with the cost of home insurance. That’s why we use technology to analyze granular insurance data. By digging into the data, we’re able to price your policies fairly and accurately.
Additionally, our members often save money with home insurance discounts for:
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Installing home security devices.
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Reducing their wind risk.
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Living in gated and secured communities.
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Using water detection devices.
Another way to save on your homeowners insurance is to choose a higher deductible. In Florida, you can choose from the following options:
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Standard deductible
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$500, $1000, $2,500, $5,000, $10,000, $25,000, $50,000
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Hurricane deductible
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$500 or 1%, 2%, 3%, 5%, 10% of your Coverage A.
Remember – your deductible is the amount you have to pay in a claim, so be sure to pick something you can afford even in a catastrophe.
What other coverage do I need in Palm Bay?
Homeowners insurance doesn’t cover flood damage, including when it’s caused by hurricane storm surges, so you likely need flood insurance in Florida. In fact, you may be required to get flood insurance if your home may be in a high-risk flood zone.
The best way to find out if your home is at risk is to use the Federal Emergency Management Agency’s Flood Map Service Center to see the flood zone designation for your neighborhood. You can also find detailed information about flood zones and flood risk by visiting the City of Palm Bay website.
Frequently asked questions about home insurance
We know how important it is to get the right policy for your home. That starts with getting good answers to your questions. Here are a few to get you started.
Resources for Palm Bay homeowners
How to get home insurance in Palm Bay
While other insurance companies have withdrawn from the state because of the high cost of hurricanes, we’re committed to helping Florida homeowners for the long haul. It takes just minutes to start protecting your home. Just enter your address or give us a call 855-717-0022.
