Florida homeowners may be in for a surprise when they receive their insurance renewals.

While premiums have been rising in Florida for years, making it one of the most expensive states in the country for homeowners coverage, this time, insurers are raising deductible percentages which can lead to homeowners having to pay significantly more out of pocket if they make a claim.

Homeowners have seen deductibles rise from 2% to 3% which can lead to thousands of extra dollars a homeowner will have to shell out if their home is severely damaged by a storm.

Most insurance policies in Florida come with a percentage deductible for wind and hurricane damage. A percentage deductible means that you will pay a percentage of your total coverage amount instead of a fixed amount as a deductible when you make a claim.

Percentage deductibles can leave homeowners on the hook for thousands of dollars if they need to make a claim. As an example, if your home is insured for $400,000 and you have a 2% deductible, your deductible amount is $8,000 which you will have to cover if you file a claim. Pushing that deductible amount up to 3% increases your deductible cost to $12,000.

Many homeowners are unaware of how a percentage deductible works and how much they will be responsible for if they must make a claim. Unfortunately, most insurers in Florida use a percentage deductible, at least for wind and hurricane damage.

While there is very little you can do about a percentage deductible, there are a few things you can do to keep your coverage affordable:

  • Read your policy: Be aware of what your policy covers and your deductible for various perils. Many policies will have a different deductible for specific perils, make sure you understand the various deductibles in your policy. Also check for exclusions to coverage.
  • Contact your insurer: Contact your agent or insurer to ask why your deductible percentage was increased and if there is anything they can do to lower it.
  • Shop your coverage: Not all insurers are raising percentage deductibles and insurance companies rate risk differently which can result in dramatically different premium quotes. Get quotes from at least five insurers and always make sure you are comparing apples to apples when it comes to deductibles and coverage levels.
  • Bundle coverages: Bundling your car and homeowners insurance typically results in a major discount so if you don’t already bundle your coverages you should consider it.
  • Install a security system: Installing a monitored security system will usually result in discount that can help lower your premium.
  • Make home improvements: Upgrading your roof or making your home more disaster proof can help lower your premium. Check with your insurer on what improvements will result in a discount and notify them to recalculate your premium after the improvements have been made.