Top 4 Home Insurance Providers in Tampa
Our picks for the top companies offering property insurance policies in Tampa include:
According to 2023 homeowners insurance data from Quadrant Information Services, the average annual cost of homeowners insurance in Tampa is $3,179. The average rate of homeowners insurance in Florida is $2,528, which is higher than the national average of $2,417.
Average Cost of Homeowners Insurance in Tampa
The cost of home insurance in Florida varies from city to city and person to person. The average annual premium in Tampa is $3,179, which is considerably higher than the state average of $2,528.
Florida’s geographical location can impact the amount of coverage available, with its high risk for windstorms, tornadoes, floods, hurricanes and tropical storms. Tampa, Florida residents may find it challenging to access affordable premiums, especially in the wake of Hurricane Ian.
What Factors Affect Home Insurance Rates in Tampa?
Factors impacting home insurance premiums in Tampa include:
- Age, size and condition of your home: Older, larger and poorly maintained homes will have higher homeowners insurance rates than newer, smaller homes. Insurers will ask questions about building materials, plumbing and electrical systems, roofing and other household components. If your home has an older roof or aged pipes, expect higher rates.
- Location: One of the primary factors impacting home insurance in Tampa is the risk associated with the location. Wind damage, flooding and fires are a higher likelihood for Florida homeowners. Other location elements, such as crime rates and the risk of vandalism, can also increase home insurance premiums.
- Special features: Having a pool or hot tub can drive up the cost of insurance because it presents a greater risk of injury and liability. Homeowners can pick up an umbrella policy add-on to protect themselves from potential civil lawsuits. However, other special features, such as security systems, sprinklers and wind-resistant roofing, can lower insurance rates.
- Claims history: If you have previously filed insurance claims, it can impact your insurance costs. The more claims you’ve filed in the past, the more potential for a higher insurance rate.
- Replacement costs: Underwriters determine the cost of replacing your home based on the value of materials, square footage and average labor expenses. Insurance agents use that data to inform the cost of premiums, along with any updates or risks associated with your location.
- Your financial history: Your credit score is important to more than just your mortgage lender. Higher credit ratings can lower your insurance premium.
- Policy structure: Selecting higher coverage limits and add-ons can increase your premium costs. You can lower rates by increasing your deductible or taking advantage of eligible discounts.
Common Causes of Home Insurance Claims in Tampa
According to the Insurance Information Institute (Triple-I), the three most common claims filed in Tampa and the state of Florida are:
- Wind and hail damage: Increasing surges of tropical storms, tornadoes, thunderstorms and hurricanes with high winds and hail account for the most damage to homes in Tampa, Florida
- Water damage: According to the Triple-I, one in 60 homes with flood insurance filed claims for water damage in 2022.
- Fire and lightning damage: These claims are less frequent but can cause the most expensive damage, averaging nearly $80,000 in damage for a single claim.
There are a few ways to mitigate the risks of these types of damage, whether through safety features or investing in additional insurance coverage. For example, hurricane storm shutters protect doors and windows from high winds and hail. Fire detectors and lightning rods can prevent extensive fire damage.
Water damage is arguably the most difficult to prevent, given Tampa’s proximity to the coast. Flood insurance provides coverage, and you can compare quotes across multiple providers to find affordable endorsements to supplement your home insurance policy.
Recommended Home Insurance Coverage in Tampa
HO-3 insurance is the most common form of home insurance on the market. Unlike HO-1 and HO-2 policies, HO-3 covers potential perils that could damage your dwelling, such as theft, fire and severe storms.
Most HO-3 policies provide three primary coverage types: dwelling, liability and personal property. Sometimes, an HO-3 policy will provide other structures coverage, which refers to property that is not part of the home, such as a fence, detached garage or backyard shed. Some policies will also cover loss of use, which reimburses you for living expenses while your home is under construction following a covered event.
Based on the unique risks posed by living in Tampa, we recommend adding the following endorsements to your home insurance policy:
- Mold property: This increases your premium to provide more protection should you experience mold damage in Tampa’s humid climate.
- Scheduled personal property: Your standard personal property coverage may not extend to items of high value. Adding this endorsement will cover high-value assets in the event of a claim.
- Sinkhole loss coverage: Sinkholes are more common in the state of Florida than in other areas of the country. Most standard HO-3 policies online cover minor damage.
- Water backup and sump overflow coverage: Water damage is common in Tampa, but most policies do not cover water backup and sump overflow without this endorsement.
- Flood coverage: Tampa currently participates in a Community Rating System and has Class 5 status, providing a 25% discount on flood insurance in flood zones and a 10% discount on policies outside flood zones. With these available discounts, we recommend adding a flood endorsement to your coverage.
- Personal injury coverage: If someone suffers an injury on your property, personal injury liability protection will cover your financial liability if they decide to sue for damages. Coverage can extend to physical injuries and reputational damage, such as libel and slander.
The Bottom Line on Home Insurance in Tampa
Each provider on our list can offer home insurance coverage with varying benefits in Tampa, Florida.
Allstate boasts better scores with AM Best and J.D. Power than some other companies, suggesting financial stability and customer satisfaction. The company has a history of satisfactory customer service and performance ratings, with a large network of agents offering round-the-clock support and easy access to online quotes and home valuation.
Liberty Mutual has the most comprehensive suite of discounts, an important component for homeowners facing high insurance premiums. However, Progressive and State Farm are both experienced insurance providers with solid home insurance coverage, plus State Farm offers unique coverage for sinkhole collapse damage.
We recommend shopping for quotes from at least three of the providers on our list before purchasing a policy.
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