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Living in Florida means sunshine, beaches, and some of the highest insurance risks in the country. Whether you're new to the state or have lived here all your life, understanding how insurance works here is more than helpful. It’s essential. This quick guide breaks down the basics every Floridian should know.

1. Florida’s Risk Profile Is Different

• Florida’s natural beauty comes with a price:
• Hurricanes and tropical storms can cause catastrophic property damage.
• Flooding is not only common near the coast, but it also happens inland too.
• Sinkholes are more frequent than people think.

Because of these risks, insurance is not just recommended here. It is often required by lenders or landlords.

2. Homeowners Insurance Doesn’t Cover Everything

If you own a home in Florida, standard homeowners’ insurance is not enough. Here’s what it typically doesn’t cover:

• Flood damage
• Sewer backup
• Mold remediation
• Sinkholes (unless you add specific coverage)

To truly protect your home, you may need flood insurance, windstorm coverage, and additional endorsements.

3. Car Insurance in Florida Is Unique and Often Expensive

Florida is a no-fault state, which means your car insurance pays for your own injuries regardless of who caused the crash. This setup requires:

• Personal Injury Protection (PIP) — minimum of $10,000

• Property Damage Liability — minimum of $10,000

 

However, many drivers are underinsured. It is smart to carry Uninsured Motorist Coverage to
protect yourself.

Also, Florida ranks among the top five most expensive states for car insurance. Rates can vary
drastically depending on your city, credit score, and driving record.

4. Flood Insurance Is Not Optional If You Want Peace of Mind

Even one inch of water can cause over $25,000 in damage. Yet standard homeowners’ insurancedoes not cover floods.

If you live in a high-risk zone, your mortgage company may require flood insurance. But even in low-risk zones, Florida’s unpredictable weather makes it a smart add-on.

5. Umbrella Insurance Can Save You from a Lawsuit

If someone slips on your property, gets hurt in a car accident you caused, or sues you for damages, your regular policy might not cover the full amount. An umbrella policy gives you extra liability protection, often $1 million or more. In a litigious state like Florida, that’s a wise move.

 

6. Renters Need Insurance Too

• Don’t assume your landlord’s policy will protect your things. It won’t. Renters insurance covers:
• Your personal property
• Hotel costs if you’re displaced
• Liability if someone gets hurt in your (rental, apartment, condo or home).

In a state with frequent weather events, it’s a low-cost way to stay protected.

 

7. Don’t Just Buy the Cheapest Policy. Buy the Right One.

Florida’s insurance market is competitive but complicated. Many policies are:

• Stripped down to lower prices
• Full of exclusions
• Sold by third-party companies that aren’t clear about the coverage

 

Always ask:

• What’s not included?
• Who underwrites the policy?
• What’s the deductible for hurricane or wind damage?

 

In Florida, insurance isn’t just paperwork. It is your financial shield. From hurricane season to everyday  accidents, the right coverage can mean the difference between bouncing back and starting over.

If you have questions or want help reviewing your policy, reach out to one of our licensed agents at Low Cost Insurance, Inc. Office: (863-840-9097) who understands Florida’s insurance laws and risks.