The average cost of homeowners insurance in Miami is $16,823 per year for a policy with $300,000 in dwelling coverage and a $1,000 deductible, which is much higher than the overall U.S. average of $2,377 and the Florida state average of $10,996. You should always compare quotes from multiple home insurers to find the best coverage.

Miami residents pay high premiums because of limited competition and high risks. Many home insurers have exited the Florida market in recent years, leaving fewer coverage choices.1 Miami is prone to hurricanes and tropical storms that can cause costly wind and water damage.2

Here’s what you need to know when buying home insurance in Miami.

Best home insurance companies in Miami

Although many insurers have left the Miami market, homeowners can still find great coverage options. The right home insurance policy for each property owner depends on location and personal coverage needs.

The table below shows some of the best home insurance companies offering coverage to Miami homeowners that are worth checking out. Start your search for home insurance below.

Cheapest rates: Travelers

Best insurer for gated communities: Nationwide

Best insurer for rental properties: State Farm

Best insurer for hurricane recovery: Security First Insurance

Security First provides access to its First Choice Repair Network, which includes more than 100 licensed Florida contractors the insurer vetted and approved. With more than 2 million homes in the Miami metro area at moderate to great risk of hurricanes, demand for repairs will be high if a storm happens. Security First customers can benefit from access to a trusted contractor network.

Cheapest home insurance in Miami

Insurance companies price homeowners insurance policies based on the risk you pose as a customer. As a result, home insurance rates from a particular company may cost less for certain homeowners but more for others. But Travelers is the cheapest home insurer in Miami, with considerably lower average premiums than competitors in the area.

Compare average quotes from various home insurers in Miami below. The average annual premiums reflect the cost of a policy with $300,000 in dwelling coverage and a $1,000 deductible.

Cost of homeowners insurance in Miami

Miami homeowners insurance is very expensive. The average cost of home insurance is $16,823 per year for a $300,000 policy with a $1,000 deductible. This significantly surpasses the nationwide average of $2,377 and Florida’s average of $10,996. Your policy details, like your dwelling coverage and deductible amounts, affect how much you pay for home insurance.

Many insurers have stopped offering insurance coverage in the area due to the high risk of damage from hurricanes and tropical storms, both of which cause high winds and storm surges. These risks, combined with the limited number of insurers providing policies, make Miami one of the country’s most expensive insurance markets.

Cost of homeowners insurance by dwelling coverage amount

Expensive homes cost more to insure. You should always have enough dwelling coverage so you can afford to rebuild after a covered event. Having a higher dwelling coverage amount will increase your annual home insurance premium.

The table below shows how average home insurance premiums in Florida vary by coverage limit for policies with a $1,000 deductible.

Cost of homeowners insurance by deductible

As a property owner, you’re responsible for covering your homeowners insurance deductible before the insurer pays for the remainder of covered losses when property damage occurs.

If you buy a policy with a higher deductible, you take on more risk because you’ll pay a larger out-of-pocket amount in the event of damage or loss. This explains why homeowners who chose higher deductibles pay lower home insurance premiums and why premiums increase for homeowners with smaller deductibles.

Below, you can see how your choice of deductible affects the average cost of home insurance for a policy with $300,000 in dwelling coverage in Miami.

How to get cheap homeowners insurance in Miami

You have options to reduce insurance premiums while keeping your valuable coverage.

Here are some ways to pay less for Florida home insurance coverage without compromising on protection:

• Shop around. It’s a good idea to get quotes from multiple insurers because prices vary by company. Be sure to compare similar policies from different companies to best assess how prices compare.

• Take advantage of discounts. Some Florida insurers offer discounts for bundling policies or for living in a gated community. Look for ways to save. You’ll want to ask your insurer about all your options, as the company may not have listed every discount on the website.

• Change your deductible. If you want to pay lower premiums, increase your deductible. Be aware this could result in higher out-of-pocket costs in the event of a claim if you have a covered loss.

• Make home improvements. Many Miami-area insurers offer discounts for installing a new roof or making other major upgrades, such as renovating plumbing or heating equipment. This could make a big difference in home insurance rates for people with older homes especially.

• Install protective devices. Burglar alarms and smoke detectors reduce the risk of a claim. Installing them can result in lower homeowners insurance premiums.4

Florida homeowners insurance rates by city

Your home’s location affects the level of risk that insurers take on when providing homeowners insurance coverage. Living in areas with a high risk of flooding, wind damage, or other adverse weather events increases the chances you’ll have to make a homeowners insurance claim.

In Miami, 100% of homes have at least some wind risk due to the city’s coastal location and risk of hurricanes. In contrast, living in ZIP codes with low risks of major weather disasters can reduce risks, as can residing in areas where the crime rate is low.

The table below shows how Miami’s property insurance rates compare to average premiums in other cities with a different risk of hurricane-related damage. The average annual premiums below reflect costs for policies with $300,000 in dwelling coverage and a $1,000 deductible.

How much homeowners insurance do you need in Miami?

It’s important for homeowners to buy enough coverage to protect against losses. You should insure your home for at least 80% of its replacement cost.

If you have a mortgage, your lender will require you to have enough dwelling coverage to rebuild your property if something destroys it. You should also have liability and personal property coverage in case conditions at your home cause injury to a visitor who faces medical expenses or if a disaster damages or destroys the personal belongings in your house.

You need to know not only what homeowners insurance covers but also what types of losses insurers generally exclude. Standard homeowners policies don’t pay for flood damage, which is a very real risk in Miami, so you’ll need to look into policies available through the National Flood Insurance Program (NFIP).

What are some of the biggest risks when owning a home in Miami?

Miami homeowners should prepare for the serious risks posed by weather conditions in the area.