The average cost of home insurance in Key West is $22,715 annually for a $300,000 policy with a $1,000 deductible, making it one of the most expensive areas in the country for coverage. The small island of Key West is vulnerable to hurricanes, flooding, and wind damage due to its location off the Florida coast. Key West also has high property values, with a median sales price of $1.14 million.

Despite all these challenges, it’s still possible to find affordable coverage in Key West. Here’s what you need to know about Key West home insurance.

Best home insurance companies in Key West

Though some insurers have left or reduced their coverage in Florida, many reputable home insurance companies still exist in Key West. The best insurance company for you will depend on your home’s value and any risk factors you face.

Here are some great options to help you get started.

Best company for bundling policies: State Farm

Best company for veterans: Armed Forces Insurance

Best company for customized coverage: Nationwide

Cheapest home insurance companies in Key West

Homeowners insurance is expensive in Key West, making it even more important to shop around and compare quotes from different insurers. State Farm is the cheapest company overall, with an average annual rate of $6,597. Here are some other affordable insurers in Key West.

How much is home insurance in Key West?

On average, home insurance in Key West costs $22,715 annually for a $300,000 policy with a $1,000 deductible, making it significantly higher than both the state and national averages. These high rates are due to the area’s extreme weather risks. Key West’s coastal location and island nature put it at risk for hurricanes, windstorms, and flood exposure.1

Plus, many of the homes in Key West are older, especially in the Old Town area, which is a designated historic district. Older homes are often more expensive to insure because their outdated systems and materials make them more vulnerable to extreme weather.

Cost of home insurance by dwelling coverage in Florida

Your dwelling coverage applies to the physical structure of your home, and you need to carry coverage for at least 80% of the value of your home. Higher coverage amounts will increase your premiums because your insurance company is taking on more financial risk. 

For example, if you purchase a $500,000 policy, your insurer will have to pay out significantly more following a claim than for someone with a $100,000 policy. The following table shows what Florida homeowners pay based on their coverage amount.

Cost of homeowners insurance by deductible amount

A deductible is the amount you pay out of pocket after filing a claim before your home insurance coverage kicks in. Choosing a lower deductible means you’ll pay less out of pocket, but your monthly premiums will be higher. A higher deductible increases your out-of-pocket costs, which will help you save on your monthly insurance premiums.2

The table below shows how your deductible affects your annual premium in Key West.

Average cost of home insurance in other cities in Florida

Home insurance costs can vary between Florida cities and even different ZIP codes within that city. For example, rates may be higher in areas with higher crime rates, hurricane exposure, or a history of flooding.

The table below shows how rates fluctuate between different Florida cities.

What to know about owning a home in Key West

Owning a home in Key West comes with several unique considerations: