We get the question all the time. Why is the same type home, price, square footages, construction materials and age more expensive to insure at the beaches vs. West of the Intercoastal Waterway or inland?

Feeling the Effects

There are several factors. The most obvious is, STORMS! The hurricanes enter Florida either from the Atlantic Ocean or the Gulf of Mexico and the most damage occurs in the coastal communities with the impact the strongest. As storms move inland storms tend to weaken and thus damages and claims are less. The state of Florida had much higher storm surge and higher winds on the coast than inland with Hurricanes Matthew and Irma. It is a fact of life.   

It Could Be Worse…

When we look at the cost of Home Insurance in Jacksonville Beach it is higher than what it would cost to insure a home say 20 miles west of the ICW. But when you compare the Home Insurance rates in  Jacksonville Beach and Northeast Florida to South Florida or even into the Tri-County area like Dade, Broward and Palm Beach the costs here are about 1/3 to ½ as much.

So, when you think about it living in the Jacksonville Beaches area compared to South Florida, we are getting a bargain on Homeowners Insurance living the same distances from the coast. If you even go 20 miles inland in Southeast Florida the premiums are still much higher than a home that sits right on the beach in North Florida.

Either way homeowner’s insurance in Jacksonville Beach Florida is not that bad overall and it can also depend on the carrier.

How Do Insurance Carriers Factor In?

Insurance companies have to carry something called re-insurance. This is insurance on top of insurance where the losses of a huge event like Hurricanes Matthew, Irma and Harvey. Re-insurance is purchased by insurance carriers to layer the risks and losses to make sure they can pay claims and stay solvent.

Some companies are stronger financially and can offer better coverages with better rates.  We try and specialize in offering A. M. Best rated companies whenever possible. There are not that many but if you can get one even at higher rates you might be better off when claim time comes.

Up until Hurricane Matthew and Irma, Florida went over 11 years without a storm. There were dozens of companies that set up shop writing homeowners insurance that had never been tested. At Pablo Beach Insurance we can definitely tell you which carriers were more responsive with claims handling the last two storm seasons than others.

So, when purchasing Homeowners Insurance in Jacksonville Beach or anywhere else in the state of Florida, price isn’t always the best way to go. The old saying “you get what you pay for“ is true.

I actually happen to live in Jacksonville Beach and have the mindset of it is more expensive to live close to the ocean but it’s worth it. Consider the premium you pay a “sunshine tax” for living the life!  

For More

Here is a recent “Whiteboard Wednesday” we did regarding ‘Going Coastal’ and why home insurance costs more at Jacksonville Beach and other coastal areas in Florida.


Florida Insurance Experts

For over 13 years, PBIG has been helping Florida residents by getting them the right coverage at the right price. We are locally owned, have a casual approach, and deliver professional results. Click below to get a no-hassle, free quote from one of our experts.