Florida Homeowners Insurance: What You Need to Know in 2026

If you've recently moved to Florida — or if you've owned a home here for years — you already know that homeowners insurance in the Sunshine State is a different animal. Higher premiums, unique coverage requirements, and a market that's been through significant upheaval make it more important than ever to understand exactly what you're buying.

Here's a practical guide to Florida homeowners insurance for Palm Beach County residents.

Why Florida Homeowners Insurance Is Different

Florida faces a combination of risks that few other states deal with simultaneously:

• Hurricane and tropical storm exposure along the entire coastline
• Flooding from both storm surge and heavy rainfall
• Sinkholes in certain geological zones
• High litigation rates that have historically driven up insurer costs

These factors have caused many national carriers to reduce their Florida exposure or exit the state entirely. That's left many homeowners with fewer choices and higher premiums — but it's also made working with a knowledgeable independent agent more valuable than ever.

The Core Components of a Florida Homeowners Policy

Dwelling Coverage (Coverage A)

This covers the structure of your home — the walls, roof, floors, built-in appliances, and attached structures like a garage. The coverage limit should reflect what it would cost to rebuild your home from the ground up at today's construction costs, not what you paid for it or what it's worth on the market.

Other Structures (Coverage B)

Covers detached structures on your property: fences, sheds, detached garages, and similar structures. Typically set at 10% of your dwelling coverage.

Personal Property (Coverage C)

Covers your belongings — furniture, electronics, clothing, and more. You can choose between actual cash value (depreciated) or replacement cost value (what it costs to replace items today). Replacement cost is almost always worth the additional premium.

Loss of Use / Additional Living Expenses (Coverage D)

If your home becomes uninhabitable due to a covered loss, this pays for temporary housing, meals, and other living expenses while repairs are made. In Florida, where major repairs can take months, having adequate ALE coverage is critical.

Liability (Coverage E)

Protects you if someone is injured on your property or if you accidentally damage someone else's property. Standard limits start at $100,000, but many homeowners benefit from higher limits or an umbrella policy.

Medical Payments (Coverage F)

Pays for minor medical expenses for guests injured on your property, regardless of fault. Typically a small limit ($1,000–$5,000) designed to handle minor incidents without a liability claim.

What Florida Homeowners Insurance Does NOT Cover

This is where many homeowners get surprised after a loss:

Flood damage — Not covered by standard homeowners insurance. You need a separate flood policy through the NFIP or a private carrier.

Sinkhole damage — Standard policies cover "catastrophic ground cover collapse," but not all sinkhole activity qualifies. Separate sinkhole coverage is available and worth considering in certain areas.

Normal wear and tear — Insurance covers sudden, accidental losses — not gradual deterioration or deferred maintenance.

Mold — Often excluded or limited, particularly if it results from a maintenance issue rather than a covered water loss.

Understanding Florida's Hurricane Deductible

Florida law requires insurers to offer a separate hurricane deductible, which is typically higher than your standard deductible. Common options are 2%, 5%, or 10% of your dwelling coverage amount.

On a $350,000 home with a 5% hurricane deductible, you'd pay $17,500 before insurance covers hurricane damage. This is a significant out-of-pocket exposure that many homeowners underestimate.

Some policies offer a flat-dollar hurricane deductible as an alternative. Ask your agent to walk through the options and help you choose the right balance between premium and deductible.

Roof Age and Coverage

Florida insurers pay close attention to roof age. Many carriers won't write a new policy on a home with a roof older than 15–20 years, and some will non-renew existing policies when the roof reaches a certain age.

If your roof is aging, it's worth understanding:

• Whether your policy covers replacement cost or actual cash value for roof damage
• Whether your insurer has any upcoming non-renewal concerns
• Whether a roof replacement might actually lower your premium

How to Find the Right Policy

Work with an Independent Agent

An independent agent represents multiple carriers, which means they can shop the market on your behalf and find the best combination of coverage and price. Captive agents (who represent only one company) can only offer you that company's products.

Don't Shop on Price Alone

The cheapest policy isn't always the best policy. Look at coverage limits, deductibles, exclusions, and the financial strength of the carrier. A policy that saves you $200 a year but leaves you underinsured after a hurricane isn't a good deal.

Review Your Policy Annually

Florida's insurance market changes frequently. Carriers adjust rates, change underwriting guidelines, and sometimes exit the market. An annual review with your agent ensures your coverage stays current and competitive.

The Evergreen Approach

At Evergreen Insurance, we've been helping Palm Beach County homeowners navigate Florida's complex insurance market for years. As an independent agency, we work with multiple carriers to find coverage that fits your home, your budget, and your risk tolerance.

If you have questions about your current policy or want to explore your options, we're here to help.