Florida windstorm insurance: everything you need to know

Florida is one of the most expensive states in the country for home insurance. According to Bankrate's analysis of average rate data from Quadrant Information Services, homeowners insurance costs an average of $5,409 per year for $300,000 in dwelling coverage in the Sunshine State. This is 132 percent more than the national average cost of a policy, which is $2,329 annually. 

Part of the reason Florida home insurance is so pricey can be credited to wind damage. Florida is no stranger to hurricanes, and when those storms hit, they can cost insurance companies big. To account for this added risk, Florida home insurance companies typically charge higher rates. While you're automatically covered for wind damage in a standard HO-3 policy in Florida, you do have the option to exclude it to save on premiums.

Windstorm insurance in Florida

Although Florida is a high-risk state for wind damage, insurance companies must include wind coverage. This is different from Texas, where wind is not covered by home insurance in some counties along the Gulf Coast.

Although wind is covered by home insurance, filing a wind insurance claim in Florida may look a little different than the usual process. Carriers might have a separate “named storm” deductible, which usually applies to named hurricanes and other tropical storms. For example, if your home was damaged by Hurricane Beryl winds and you filed a home insurance claim, a named storm deductible would likely apply.

Florida insurers must offer a $500, 2 percent, 5 percent and 10 percent deductible for named storms. The percentage options represent portions of your total dwelling limit. So, if you have a $300,000 dwelling limit with a 2 percent named storm deductible, you would be responsible for $6,000 in the event a wind insurance claim caused damage exceeding that amount.

There are a few exceptions to the hurricane deductible amounts that an insurer might offer you:

Florida statutes on windstorm insurance

Florida statutes set clear guidelines for windstorm coverage:

• Coverage is a must-have: In Florida, insurance policies for homes must include coverage against wind damage. This is important because it helps homeowners with expenses if their property is damaged by wind from storms or hurricanes.
• Opting out is an option: Homeowners have the choice to not include windstorm coverage in their policy. To do this, they need to write a clear statement to their insurance company, saying they understand they'll be responsible for any windstorm damage themselves.
• Lender's approval is key: If the homeowner still owes money on their home through a mortgage or lien, they must get permission from their lender to exclude windstorm coverage. This step ensures that the lender is aware and agrees with the homeowner's decision to not have this coverage.
• Personal belongings can also be excluded: For homeowners who aren't living in condos or renting, there's the option to not insure their personal belongings against windstorm damage. They need to inform their insurance provider in writing if they choose this.
• Your signed statement matters: Keeping a signed document where the homeowner states their coverage choices serves as proof that they made an informed decision. This document is crucial, especially when there's a need to review coverage decisions.
• Decisions stick with you: Once a homeowner decides about their windstorm coverage, that decision applies for the duration of the insurance policy. Changes to coverage preferences are generally made when the policy is up for renewal.
• Accessibility for all: The law takes into account homeowners who might have disabilities, ensuring there are alternative ways for them to communicate their coverage choices to their insurance providers. This ensures everyone can make informed decisions about their windstorm coverage.
• Savings for damage mitigation: Florida's statutes also explicitly state that insurers must “provide savings to consumers who install or implement windstorm damage mitigation techniques, alterations, or solutions to their properties to prevent windstorm losses.”

Do I need windstorm insurance?

Wind insurance in Florida is baked into your home insurance, which covers your personal property and structural damage caused by windstorms. Although Florida’s law does not require homeowners to carry home insurance, most mortgage lenders do. Even if your lender does not require homeowners insurance, you may end up saving more down the road by having a policy, as property damage caused by windstorms or other perils can be costly. 

But, Florida insurance statutes allow homeowners to waive their wind insurance coverage. Meaning, you can choose to have wind damage not included in your home insurance policy. Homeowners may do this to help curb home insurance costs, which run especially high in Florida. 

However, this may not be an option for homeowners with mortgages; your financial lender will likely require you to carry windstorm insurance in Florida either through your HO-3 home insurance policy or a separate wind insurance policy. Depending on your flood zone, your bank could also require you to have a flood policy as a condition of your mortgage. 

If you own your home outright — meaning there’s no mortgage company with a say in your coverage — and choose to waive wind insurance from your primary home policy, you would only be financially protected from wind damage if you had a separate wind policy. Otherwise, if a hurricane blows through and damages your roof, you will need to pay for repairs on your own.

Learn more: How a loan can help weatherproof your home before extreme weather hits

How much does windstorm insurance cost?

A standard home insurance policy in Florida costs an average of $5,409 per year for $300,000 in dwelling coverage. However, costs vary significantly throughout the states. In Miami, for instance, that same policy costs $10,257 per year. Those rates reflect policies that include wind insurance. However, your rate could be lower if you choose to exclude wind from your policy. 

The cost of a separate wind policy will depend on where you live. Like home insurance costs, wind insurance will likely be more expensive for homes closer to the coast. Exact rates for wind insurance are not available; however, homeowners should expect to pay at least a thousand dollars for it.

How do I get windstorm insurance?

Under Florida statutes, insurers that provide coverage for any property must also include coverage for windstorm damage in their standard property policies. So, if you’re wondering if you have wind coverage, the best place to start is by asking your home insurance company.

If you chose to exclude wind insurance from your insurance policy and are looking to get it from another provider, you can ask around for quotes. However, homeowners that live in an area more prone to windstorms, such as coastal communities, may have difficulty qualifying for coverage through a standard Florida carrier and might need to obtain a policy through Florida’s state-backed FAIR Plan from Citizens.

If you have trouble obtaining windstorm insurance, consider contacting the Florida Market Assistance Program (FMAP), a free service that helps Floridians find homeowners insurance.

Ways to save on windstorm insurance

Living in a higher-risk area can hike your insurance costs quite a bit, but there are still potential ways to save. Several state-run programs can assist homeowners in lowering their costs, such as programs designed to help homeowners offset their risk of windstorm damage. In addition, Florida requires that insurers offer windstorm credits. These are essentially discounts for making home improvements to mitigate wind damage. You may also be able to carry a higher windstorm insurance deductible in exchange for a lower rate, but remember that a higher deductible means more expenses are paid out of pocket in a claim situation.

Florida Hurricane Loss Mitigation Program

The Florida Hurricane Loss Mitigation Program helps Florida home and property owners reduce their risk of property damage from windstorms, which may reduce insurance rates. Grants are available for mitigation efforts such as retrofits, inspections and construction or modification of building components that help a residential or commercial building better sustain hurricane winds.

Wind mitigation credits

By Florida law, any homeowner with wind and hurricane-resistant features is entitled to wind mitigation credits, enabling them to receive a discounted insurance rate for windstorm coverage. You could earn credits for: 

• Proper roof covering 
• Wind-resistant doors
• Wind-resistant windows 
• Wind-rated garage doors 
• Hurricane shutters 

The larger the wind mitigation credit you qualify for, the greater the discount you will receive from your property insurance company. During the inspection, the inspector may even suggest a few more preventative add-ons to your home to further reduce your insurance costs.

Ways to protect your home from windstorm damage

Florida homeowners can implement tactics to protect their homes from damaging winds. By doing so, you may also reduce your insurance premium. A few ways to mitigate damage caused by severe wind include:

• Installing storm shutters
• Trimming the trees and removing dead or damaged ones
• Ensuring proper sealing of windows, doors and garages
• Having a good roof and clear gutters
• Reinforcing your roof with hurricane straps
• Installing wind-resistant doors and windows, as well as wind-rated garage doors
• Having plans in place for securing outdoor objects, such as dog houses, garbage cans and picnic tables in the event of a storm
• Bolting manufactured housing to the foundation using anchor bolts

Frequently asked questions