Best Home Insurance in Miami, FL

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Contributor, Benzinga
March 16, 2020

Miami can offer its share of beautiful sandy beaches, amusement parks and fabulous weather, but it’s no stranger to flooding, hurricanes and other natural disasters. It’s easy to see why home insurance policies are higher in Florida than in any other state. 

It’s an absolute necessity for your home to be completely insured in hurricane-prone Miami. Finding a comprehensive cheap home insurance policy involves digging and extensive research. 

Best Home Insurance Providers in Miami:

Best Home Insurance Providers in Miami

The average cost of insurance premiums of a homeowner in Florida is $1,918, according to the Insurance Information Institute. Many Miami homes are constructed on floodplains and wetlands, which increases the threat of hurricane-related flash floods or flooding. 

In addition, older residences cost more to get insured because building materials become brittle with time and age. The size and physical location of your property also make a difference. 

We’ve done extensive research and compiled a list of the 5 best home insurance providers in Miami.

Security First
Best For
  • Seniors

1. Cheapest Home Insurance in Miami: Security First

We recommend Security First if you’re focused on searching for the lowest possible rates. Its average premium rate of $519 beats the premium amount of $710 at State Farm, the second-best in the state. 

Security First’s plans provide ample coverage not only to your property’s structure but to your personal belongings as well. This means that you will get compensation for any damage done to your home and personal belongings. You’ll also receive the compensation only if the damage has been done by a peril covered in the policy.

securely through UPC's website

2. Best for Hurricane Damage Coverage: UPC or Universal Property and Casualty

Consider Universal Property and Casualty (UPC) if your home is near the ocean. The upper-tier all-inclusive packages — Premier and Premier Plus — provide coverage for refrigerated contents and water backup, 2 common aftereffects of major storms. 

UPC provides options like flood insurance, renters insurance and condo insurance, unlike traditional home insurance policies. The company also offers 2 types of flood insurance policies. One is backed by the National Flood Insurance Program (NFIP), a government-run program. This means that the rates will be the same no matter where you buy it from. Another is a set of private flood insurance policies. Private flood policies offer lower premiums and more coverage compared to an NFIP policy. 

UPC’s average premium is $1,359 per year, which is lower than the average rates of most Florida insurers. 

securely through Chubb's website

3. Best for Premium Homes: Chubb

Chubb Insurance is known for its flawless customer services and premium range of coverage benefits. For example, it can pay for additional labor costs if there is a labor shortage after a significant natural disaster.

Other exclusive benefits of Chubb include its:

  • Cash settlement feature, which gives you the option of being reimbursed with cash in case of a major loss from property damages. 
  • Complimentary consultations and appraisals to help secure your home against theft or fire.

Chubb policyholders usually pay higher-than-average premiums, but it might be worth every penny in the long run. 

State Farm
Best For
  • Customers who have existing policies with State Farm

4. Best for Most Homeowners: State Farm

State Farm costs an average of $710 per year, 58% less than the standard Florida insurer. The insurance company also provides compelling customer service with unrivaled financial strength. 

Looking for a one-stop insurance shop? State Farm sells an extensive set of financial products and policies in Florida:

Average Annual Home Insurance Premium in Miami

It’s easy to find insurers that can charge over $5,000 annually. It’s double than the average amount and 5 times more compared to the cheapest options statewide. The cheapest of the home insurance providers in Florida quote rates well under $1,000 per year. 

  • Security First: $519
  • State Farm: $710
  • Chubb: $1,272
  • UPC Insurance: $1,359

Florida state law says that the homeowners who purchase the policies are entitled to receive discounts from the insurance providers if they pass a particular wind mitigation inspection. You can get a 42% discount on insurance if you pass the examination.

What Does Homeowners Insurance Cover?

Most homeowners insurance plans cover 16 common disasters, as stated by the Insurance Information Institute. Other than them, there are additional protections that may or may not be included in your standard homeowners insurance plans:

  • Structural components: Most of the policies cover the damages caused to your home’s structure. Most policies also count detached structures like the gazebo, shed or garage.
  • Personal belongings: The standard homeowners policy provides coverage to the personal belongings of not only the policyholder but also of the other residents under that roof. The personal contents have to be present within the premises of the property to get the coverage.  

Personal belongings can include clothing, furniture, electronics, sporting equipment, jewelry, furs, silverware, firearms and watercraft. Shrubs, plants and trees are also insured. You’ll also be able to get:

  • Liability coverage: If a policyholder or family members (including pets) face a lawsuit due to a certain incident, this option provides coverage for that. This policy feature covers the costs that you might have to pay in the court and elsewhere if it’s within the limits of your deductible.
  • Additional living expenses (ALE) coverage: This feature covers the expenses of living elsewhere if your home gets destroyed to the point that it becomes unlivable. It includes things like restaurant bills, hotel meals and other expenses. 

What Does Homeowners Insurance not Cover? 

You’ll also find certain things that homeowners insurance doesn’t cover. The 2 most common among them are floods and earthquakes. Generally, the insurance companies of the disaster-prone areas have policies to cover them. 

Some other things not covered are corrosion, contamination, nuclear hazards, pests, fungi, war and government actions.

Why Get Homeowners Insurance? 

It’s only reasonable for you to spend a little more to protect it. A homeowners insurance policy will provide you with that protection and peace of mind. Because a natural catastrophe or an unfortunate incident is unavoidable and can happen at any time, an insurance policy offers you protection for the future.

About Melinda Sineriz

Melinda specializes in writing about mortgages. student loans, personal loans, insurance, managing credit and debt, and credit cards.