Orlando, Florida is renowned as the home of Disney World, sprawling golf courses, and luxury resorts. With the allure of year-round sunny weather and idyllic palm trees, it’s easy to see why over two million people are proud to call the city home.
The low and flat terrain is scattered with hundreds of lakes and waterways that make Orlando prone to sinkholes and flooding. There are also seasonal threats of tropical storms, hurricanes, and wildfires.
When it comes to protecting your investment, there are plenty of options for homeowners insurance in Orlando, Florida. A standard homeowners insurance policy will typically cover:
- Structural coverage to replace garages, fences, and sheds
- Replacement-cost coverage for personal belongings and the house itself
- Coverage for living expenses if the home is uninhabitable after an event
- Personal liability coverage for any injuries or property damage
- Medical payments coverage
So, what does homeowners insurance cost in Orlando? The average cost of home insurance in Orlando, Florida is $145 per month or $1736 per year.
Influences on the cost of homeowners insurance in Orlando
Several factors can affect the cost of home insurance in Orlando, including:
- Level of coverage needed
- Home construction and type
- Claims history
- Credit history
An insurance company’s goal is to spend as little as possible, so the higher the perceived risk, the higher your premiums will be. Keep these factors in mind while shopping for insurance so you won’t be caught off guard by the quotes you receive.
Type of home insurance coverage
Your Florida homeowners insurance cost will depend on what you want to have covered, and different coverage plans will have different price points. Home insurance policies in Florida have two distinct deductibles to take into account:
- The standard deductible applies to claims for fire, theft, vandalism, and non-hurricane wind damage.
- The hurricane deductible applies to hurricane-level wind damage.
Most policies default to the hurricane deductible at two percent of your home coverage. However, you have the option of increasing this deductible up to 10 percent. A higher deductible will lower your monthly premium, but you’ll have to pay more out of pocket for hurricane wind damage claims.
Orlando flood insurance
For a city that is constantly under threat of storms and hurricanes, it might make sense to get flood insurance. It isn’t legally required, but keep in mind that hurricanes and extreme weather incidents are increasing. Just this year, Disney World has flooded twice during the span of the summer.
Keep in mind, too, that standard home insurance doesn’t cover flood damage. Protecting your home with flood insurance might ultimately provide some peace of mind and save you from having to shell out for costly repairs later.
Certain areas of Florida are susceptible to sinkholes, and unfortunately, Orlando is one of them. Sinkholes happen when the underground Floridan aquifer dissolves minerals just underneath the surface. When water levels drop, it causes the now unsupported land above to collapse.
For homeowners insurance to cover sinkhole damage, there must be:
- An abrupt collapse of ground cover
- An indentation in the ground that is visible to the naked eye
- Structural damage to the building and foundation
- An order from a government agency to condemn and vacate the building
Location of home in Orlando
Your insurance premium can vary depending on where your home is located in Orlando. If your house is in an area that is prone to weather-related events, you could end up paying a higher premium. The same is true for homes that are located closer to water or flood-prone areas.
However, if your home is located near a fire station, you can expect to pay less. Insurers can offer a discount on homeowners insurance of up to 4% for homes with a fire department nearby. This is more likely to be the case in urban and suburban areas. Rural areas tend to have lower ratings for fire protection.
Replacement costs also depend on the location of the home. The costs for construction, labor, and materials can vary according to location. The following table summarizes Orlando homeowners insurance costs by zip code:
|Orlando, FL Zip Code||Median Home Insurance Premium|
Home type and construction
Home insurance prices in Orlando, FL can depend on factors related to the building itself, such as construction, age, and size.
In Florida, home insurance companies are required to offer discounts for hurricane-resistant homes. To qualify as hurricane-resistant, a home should have:
- Impact-resistant glass windows
- Heavy-duty storm shutters
- Hurricane-proof doors
- A reinforced roof
If your home was made before 2001, when the Hurricane Andrew building codes went into effect, you may want to consider adding some of the above features. This will help you save money on insurance and offer enhanced protection for your home in case of a storm.
Some other surprising factors can influence your insurance premium, like what materials your house is made of. On average, brick homes cost 6% less to insure, and homes made from fire-resistant materials can save up to 12%.
In general, new homes cost less to insure. A newly-constructed home can cost about 36% less to insure compared to older ones.
Older homes require significant construction if they’re damaged, which is why they have higher insurance costs. You can expect an increase of 1% for a 30-year-old home and up to 3% for a 50-year-old home.
The value of your home is one of the major factors in determining homeowners insurance premiums. The larger your home, the more it will cost to insure it.
Homeowner’s insurance score and claims history
Insurance companies check your credit score to assess how much risk they’re taking on. Higher credit scores are an indicator of your ability to make your premium payments on time. In general, a higher credit score means less risk, so your home insurance rates will likely be lower.
Someone with a lower score is perceived by insurance companies as more likely to file claims under their policy. This increases risk, and so your insurance rates would be raised accordingly.
Your prior claims history is also taken into consideration when calculating your home insurance rate. Having a history of filing claims, no matter the size, indicates more risk to an insurance company. They look at claims on your home as well as personal claims at any prior properties.
This means that your claims history follows you even if you’re getting insurance for a new home. Homeowners insurance companies assume that if you’ve filed one claim, you’ll probably file more in the future, so your premiums will be higher.
How to get the best price on homeowners insurance in Orlando
While the above factors have some influence on the cost of home insurance, it is ultimately the insurance agency that makes the final decision for premiums. It’s important to do plenty of research into what exactly you will want to have covered. This will help you choose the best plan and insurance company for your needs.
It’s also a good idea to think about how much you want to pay for your hurricane deductible and whether or not you want to add extra coverage. Flood and sinkhole coverage is usually not covered by standard policies. These add-ons will cost extra, and some insurers might not offer them at all.
Deciding exactly what you’re looking for will help you get the best deal. Standard homeowners Insurance quotes don’t usually take the fees for extra coverage into account. You might buy a policy from the lowest quote, only to find out that adding additional coverage will make it much more expensive than a competitor. Shopping with clear expectations for what you do or don’t want covered will ensure that you get exactly what you need at the best price.
The costs of homeowners insurance in Orlando
Orlando, Florida is a rapidly growing community, and for good reason. With dozens of theme parks and beautiful weather all year, it’s a great place to live. But living in Orlando is not without its risks, and you’ll feel better with a substantial homeowners insurance policy in place to protect your assets.
Homeowners insurance cost in Orlando, Florida is influenced by many factors, including the value of your home, its location, and whether or not you want to add coverage for flood and sinkhole damage. Things like your credit score and previous claims history are also taken into account when calculating your monthly premium.
It’s important to be decisive and research policies from a variety of insurance companies to get the best deal. Knowing what you want is half of the battle when it comes to making sure you get the policy that is best for you and your peace of mind.