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Hippo Home Insurance Review

Hippo is a relatively new insurance carrier that sells home and condo insurance. The company uses a modern, technology-driven approach to offer innovative coverages and a host of available discounts. The company even offers a free smart home kit to eligible customers, with a discount built in as soon as it is activated.

With Hippo, you can get a home insurance quote in about a minute. But is Hippo’s insurance right for you? Bankrate’s insurance editorial team has reviewed the company’s coverage options, discounts and third-party rankings to help you make an educated decision about your insurance coverage.

Hippo home insurance

Hippo understands how reliant modern customers are on technology. The company offers modern coverage options, like increased limits on electronics and appliances, that might help you feel more secure in your insurance coverage.

Types of coverage

Home insurance policies are packages of numerous converges. Hippo offers several types of home insurance policies, so you have options to choose the policy that fits your needs.

In addition to the standard home insurance coverages like dwelling coverage, personal property coverage, liability coverage and loss of use coverage, Hippo offers several unique options that you may be able to add to your policy for extra protection:

  • Computer and home office coverage: Hippo offers four times the limit of other companies for your computer and home office equipment. This may be especially appealing if you work from home.
  • Water backup coverage: If water backs up in a sewer or drain line and damages your home or belongings, this coverage is designed to pay for the damages up to your policy limit.
  • Appliances and electronics coverage: Hippo knows that homes are more technologically advanced than they used to be. You may be able to get coverage for your appliance systems and electronics.
  • Enhanced rebuilding cost: If your home is destroyed, you may have the option to receive up to 25% more than your dwelling coverage amount to rebuild it.
  • Personal property replacement cost: This option is designed to pay for the full replacement cost of your belongings rather than factoring in depreciation.
  • Service line coverage: If the water, gas or sewer lines between your house and the street are damaged or worn, this coverage may help pay for the repairs.
  • Hippo Home Care: Although it is not insurance coverage, Hippo offers an exclusive Home Care program that can help you fix problems around the house, hire contractors and get recommendations for professionals in your area.

Because Hippo writes coverage in many states, options could vary depending on where you live. The best way to determine what coverages are available to you is to get a quote online or talk to a Hippo agent.

Hippo home insurance discounts

Hippo offers numerous ways for you to reduce your premium. And to help you achieve the best rate possible, Hippo calculates the discounts you qualify for during the online quote process.

Discounts include:

  • Early signing discount: If you purchase a Hippo home insurance policy at least eight days before it goes into effect, you might earn a discount.
  • HOA discount: If your home falls under the governance of an HOA, you may qualify for a discount on your home insurance policy. This is because HOA quality standards may make homes less susceptible to damage or theft.
  • New home discount: If your home is newly built or you have purchased your home within the last 12 months, you might save on your premium.
  • No mortgage discount:If you are mortgage-free, you may qualify for this discount on your home insurance.
  • Smart home discount: Hippo provides discounts for homes with smart devices such as smart alarm systems and smoke detectors. Hippo has partnered with Xfinity to offer even greater savings for its customers. Xfinity customers qualify for a special homeowners rate with Hippo and can earn discounts up to 25%, depending on the number of Xfinity smart home devices they install in their homes. If you qualify, Hippo may even send you a free smart home kit and give you a discount once it is activated.

Just like with the coverage options, available discounts may vary depending on where in the country you live.

Where does Hippo offer home insurance?

Although Hippo is expanding its reach, the company does not currently offer home and condo insurance in every state. Currently, coverage is not available in Idaho, Montana, Wyoming, North Dakota, South Dakota, Iowa, Oklahoma, Louisiana, Florida, North Carolina, West Virginia, New York, Massachusetts and Rhode Island.

The availability of products, coverages and discounts may vary by state.

In June 2020, Hippo acquired Spinnaker Insurance Company, a nationwide property insurance company licensed in all 50 states. Although Spinnaker will continue to operate independently, the insurer will underwrite some of Hippo’s policies, enabling Hippo to expand its market.

Hippo and Metromile partnership

In May 2021, Hippo and Metromile announced a partnership to provide consumers with a bundling discount. Hippo exclusively sells home and condo insurance, while Metromile sells pay-per-mile auto insurance. By purchasing your home or condo coverage from Hippo and your auto coverage from Metromile, you may qualify for a discount of up to 15% on both policies.

Hippo ratings, reviews, customer satisfaction and complaints

Hippo’s insurance policies are underwritten by Canopius U.S. Insurance, Spinnaker Insurance Company and Topa Insurance Company. All three companies have earned an A- (Excellent) financial rating with AM Best.

Of over 2,000 reviews on its website, Hippo is rated 4.9 out of 5.0. Customers say the coverage is affordable, easy to obtain and that the customer service agents are responsive and helpful.

Who is Hippo Insurance a good option for

Hippo home insurance is a great choice for people who own a smart home and folks who operate a home office. Hippo allows you to obtain increased coverage for computers, home office equipment, technology and appliances, which could be helpful for customers living in upgraded homes. Hippo’s Xfinity partnership offers significant savings by providing reduced rates for Xfinity customers and discounts for expanded smart home systems.

Frequently asked questions

Why do I get a discount for smart home devices?

Insurance premiums are based on risk. Smart home devices may serve as an early warning system for dangerous situations, like smoke, fires, water damage and home invasions. The early warning could help you to mitigate the damage, meaning that the insurance company will have less damage to pay for during a claim. Because of the reduced risk, you may qualify for a discount.

How does Hippo handle insurance claims?

To file a claim with Hippo, you can call 855-999-9746 or email [email protected] Your case will be assigned to a Claims Concierge. This person will be your sole point of contact during the claim process, so you know exactly who to go to with questions and concerns. Your Claims Concierge will explain the claim process and let you know how to proceed at each step.

Does Hippo sell auto insurance?

No, Hippo only sells home and condo insurance. However, Hippo and Metromile recently paired up to offer their customers a bundling discount. If you purchase your home or condo insurance with Hippo and your auto insurance with Metromile, you may save money on both policies.

Source: thesimpledollar.com

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Reasons Not To Refinance Your Home

Refinancing has become a popular decision for homeowners in 2020, as interest rates are at historic lows. You might hear about friends or family refinancing and wonder if you should be doing the same. 

While refinancing can be an effective way to reduce your mortgage interest rate or monthly payment, there are some situations in which refinancing might be a bad idea. If you’ve been considering it, you may want to keep these situations in mind and consider whether refinancing is really the right financial move for you.

In this article

Is refinancing worth it?

Refinancing your mortgage is the process of replacing your existing home loan with a new one. This new mortgage comes with a new interest rate and new payment terms, and often a new lender. You’re probably wondering why people do it.

When is it worth it to refinance your mortgage?

One of the most popular reasons to refinance is to reduce your mortgage interest rate. Rates in 2020 are historically low, and many people are taking advantage of this to lock in lower interest rates on their mortgages.

Someone might also refinance a mortgage to lower their monthly payments. If your financial situation has changed and your current mortgage payment has become unaffordable, refinancing and extending your loan term can reduce your monthly payment.

Other reasons to refinance might include removing PMI if you’ve increased your equity in your home, changing your loan type (switching from a variable to a fixed rate, or vice versa) or accessing some cash with a cash-out refinance.

[ Read: Best Refinance Rates ]

Reasons not to refinance 

Refinancing can be an effective way to save money over the life of your mortgage. But refinancing isn’t for everyone — there are some situations where it just doesn’t make sense.

Costs behind refinancing

Refinancing your mortgage comes with a lot of additional costs, both in the short-term and long-term. Refinancing won’t save you money right away. Because of the closing costs, it’ll likely take you years to break even. Plus, if you extend the life of your mortgage or refinance when you have little equity in the house, interest and private mortgage insurance can also be costly.

Closing costs

Just like with any other mortgage closing, you’ll have to pay closing costs to finalize your refinance. Closing costs can amount to between 2% and 5% of your loan amount on average — or from thousands to tens of thousands of dollars.

Typical closing costs include:

  • Loan application fee
  • Appraisal fee
  • Inspection fee
  • Origination fee
  • Attorney fees

Most of the time, closing costs are due at the time you sign the final loan documents. If you’re thinking of refinancing to put more money in your pocket, be aware that it could be years before you break even.

Long-term costs

In addition to the closing costs you’ll pay, there are other costs to refinance your mortgage as well. First, you may actually end up paying more in interest in the long-run. Let’s say you have a 30-year mortgage that you’re currently 15 years into repayments on. You’ve already paid a considerable amount in interest.

Now let’s say that you decide to refinance into a new 30-year mortgage. The lower refinance rate may not help you in that case because you’ve doubled the amount of time it’ll take you to finish paying off your mortgage.

Refinancing can also be costly when you have less than 20% equity in your home. In that case, you’ll likely have to pay private mortgage insurance (PMI), for many years, so it may be worth waiting until you have more equity in your home.

Your credit score needs improvement

Your credit score is going to be one of the most important factors in determining whether you can get a refinance loan. Even if you can qualify for a loan with a bad score, you probably won’t be eligible for the best interest rates. At that point, the refinance might not be worth it.

If your credit score needs some improvement, you’d probably be better served spending some time boosting your score. A few ways you can increase your credit score are to:

  • Make all of your monthly payments on time
  • Reduce your credit utilization, either by paying off debt or increasing your available credit
  • Find any dispute any errors on your credit report

You aren’t in it for the long run

Because of the additional costs, it can take years to break even on your refinance. If you aren’t planning to stay in the home long enough to enjoy the perks of the lower interest rate, then a refinance might not be the best option for you. 

Run some numbers and figure out how long you would have to stay in the house to save money — and then decide whether you can commit to staying for that long.

To figure out how long it’ll take you to break even on your refinance, divide your closing costs by your total monthly savings. You can also use a mortgage refinance break-even calculator to help you do the math.

Tips for refinancing

Are you considering refinancing your mortgage? Here are a few tips you’ll want to follow as you get started.

[ Read: How to Refinance Your Mortgage ]

Decide why you want to refinance.

Are you refinancing in the hopes of getting a lower interest rate? Or is your goal to lower your monthly payment? Go into the process knowing why you really want to refinance. That way, you’ll know exactly what type of loan offer you’ll need to make a refinance worth it.

Shop around for the best rates.

Between traditional banks, credit unions and online lenders, there are plenty of options available for mortgage lenders. Spend some time shopping around to make sure you get the best rate.

Pull your credit report beforehand.

The last thing you want is to apply for a refinance loan and find there’s an unwelcome surprise on your credit report that may prevent you from getting a good deal. Pull your credit report ahead of time so you know what to expect.

Do the math and decide if it’s worth it.

Depending on the type of deal you can get on your refinance, it’s not always worth it. While you may be able to get a lower interest rate, the other associated expenses may mean you’ll still pay more over time. Do the math to ensure that you’re accomplishing your ultimate goal with the refinance.

Compare top mortgage lenders

Too long, didn’t read?

Refinancing your mortgage can be an effective way to lower your monthly payments and save money. Every situation is unique, though, and there will be times where refinancing just isn’t worth it as a result of the additional costs. If you find yourself in one of the situations above, you may want to second-guess that refinance.

We welcome your feedback on this article. Contact us at thesimpledollar.com

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Credit One Bank® Platinum Visa® for Rebuilding Credit

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence. The offers that appear on this site are from companies from which TheSimpleDollar.com receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. The Simple Dollar does not include all card/financial services companies or all card/financial services offers available in the marketplace. The Simple Dollar has partnerships with issuers including, but not limited to, Capital One, Chase & Discover. View our full advertiser disclosure to learn more.

Source: thesimpledollar.com

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Credit One Bank® NASCAR® Credit Card

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence. The offers that appear on this site are from companies from which TheSimpleDollar.com receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. The Simple Dollar does not include all card/financial services companies or all card/financial services offers available in the marketplace. The Simple Dollar has partnerships with issuers including, but not limited to, Capital One, Chase & Discover. View our full advertiser disclosure to learn more.

Source: thesimpledollar.com

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USAA Home Insurance Review

USAA, a home insurance company that caters to military members, veterans and their families, consistently ranks well for customer satisfaction, whether you look at J.D. Power’s scores or our own SimpleScore. On the downside, it does not offer in-person agents.

In this USAA home insurance review, we look at what we love about the insurance provider, what could be better and a few of its competitors. We also lay out where USAA insurance stands on our proprietary SimpleScore.

Our methodology

To compare how USAA insurance for veterans and military members compares to other carriers, we awarded the insurer with a SimpleScore after examining the factors that matter most to customers like discounts, coverage options, customer satisfaction, support and website accessibility.

We also looked at how its competitors did with SimpleScore, as well as how they did with third-party reviewers, such as J.D. Power and Consumer Reports.

Great for Customer Satisfaction – USAA

While USAA offers its products and services to a niche customer base of military members, veterans and their families, this insurance carrier’s fame for superior customer satisfaction is practically unmatched.

J.D. Power Rating

5/5

AM Best Rating

A++

Standard & Poor’s

AA+

SimpleScore

4.6 / 5.0

SimpleScore USAA 4.6

Discounts 3

Coverage Options 5

Customer Satisfaction 5

Accessibility 5

  • Highest ranking in customer satisfaction
  • Understands the needs of military policyholders
  • Affordable coverage
  • Only available to military personnel and their family members

Owning a home is a big investment. Therefore, getting financial protection that’ll help you repair or replace your major investment is a wise choice. Home insurance is the best and most affordable way to ensure that your home (and its contents) are covered in case of loss or damage. This USAA home insurance review will provide you with a comprehensive look at the insurance company, which ranks on top consistently for customer satisfaction. To compare how USAA insurance for veterans and military members compares to other carriers, we awarded the insurer with a SimpleScore after examining the factors that matter most to customers like discounts, coverage options, customer satisfaction, support and website accessibility.

America’s top-rated home insurance

  • Policies starting at just $25/month
  • Sign up in seconds, claims paid in minutes
  • Zero hassle, zero paperwork
In this article

What we like about USAA

There’s a lot to like about USAA. If we had to keep it simple and stick to a couple of points, we’d have to say customer service and coverage are what set the insurer apart from the competition.

Stellar customer satisfaction 

J.D. Power conducts in-depth customer satisfaction surveys every year, asking policyholders what they like most about their insurance company. When members of the J.D. Power evaluate USAA reviews from customers, USAA beats out all other insurance companies every year. Even though USAA is limited to military personnel and relatives, it’s the third-largest insurance company in the country.

Vast coverage options 

USAA’s coverage is excellent. Insuring your home through USAA means you’ll be covered for nearly every peril and can also add flood insurance. Unlike many homeowners insurance companies, your home is covered in full at replacement cost, with no depreciation factored in. This means you’ll be able to purchase or rebuild with new items and materials.

Who should get this policy

Anyone who is privileged enough to qualify for coverage through military ties should put USAA on the shortlist of home insurance companies.

[ Read: How to Find Cheap Home Insurance ]

Things to consider

As with any insurance product, there are always some drawbacks you should be aware of before you buy.

Failure to maintain risk management 

USAA may shine when it comes to customer satisfaction, but it’s under a Consent Order with the U.S. Office of the Comptroller of the Currency. The insurer must comply by addressing concerns about a failure to implement and maintain appropriate risk management for its size, as well as not properly securing its IT systems.

Lack of live agents 

If you prefer to work with a local agent to help you with your homeowners insurance needs, USAA may disappoint. The insurer doesn’t have offices or a network of agents available. You’ll need to manage your coverage through the website, mobile app or by calling customer service.

Who shouldn’t get this policy

Traditional policyholders who prefer to let an agent file claims on their behalf, as well as handle other details of their home insurance should skip USAA insurance for veterans.

America’s top-rated home insurance

  • Policies starting at just $25/month
  • Sign up in seconds, claims paid in minutes
  • Zero hassle, zero paperwork

How we analyzed USAA home insurance

Here’s a closer look at the five most important elements behind this USAA home insurance review and SimpleScore.

Discounts 

  • Claims-free: Save as much as 10% off your home insurance premium when you don’t have any claims for five years or more. 
  • Firewise: Member communities of the Firewise program that have minimized their wildfire risk qualify.
  • Good payment history: Pay your bills on time and you’ll get rewarded with lower home insurance rates.
  • Home-age: Newer homes will save on home insurance coverage.
  • Impact-resistant roof: A higher-resistance roof reduces your premiums.
  • Loyalty: The longer you’ve been a member of USAA, the more you’ll save.
  • Multipolicy: USAA provides other types of insurance. When you bundle home and auto insurance, you may save up to 10% on your insurance bill.
  • Protective device: Homes equipped with theft and fire alarm systems will qualify for the discount.

[ See: What Home Insurance Discounts Are Available? ]

Coverage

  • Standard coverage: Includes replacement-cost coverage for your property and home’s structure, as well as limited liability insurance for lawsuits. In addition, your property is covered wherever in the world you’re deployed.
  • Flood insurance: Available as an add-on for areas at risk of flooding.
  • Earthquake coverage: Earthquake insurance is not included in a standard policy because not all areas are prone to earthquakes. It’s available as an add-on for at-risk areas.
  • Landlord coverage: If you rent your home, your home is covered and lost income included without the need for a separate policy.
  • Personal property riders: If you own higher-value jewelry, electronics or special items such as art, collectibles or firearms, this rider will cover you above the limits of standard home insurance.

Customer Satisfaction

USAA has been highly ranked by most rating companies. Take a look at it’s ratings below.

  • AM Best: A++
  • BBB: A-
  • J.D. Power: 889/1,000
  • Moody’s: Aaa
  • S&P: AA+

Support

USAA offers plenty of ways to get support if an issue were to arise with your policy or if you need to file a claim. You can contact them by phone, email and through the USAA Mobile App.

Accessibility

USAA doesn’t have offices available or local agents but you can file claims online or through the claims phone number. The best way to contact USAA is using the phone numbers available on its site. The insurer doesn’t provide live chat, but you can manage many basics through the mobile app. In addition, the USAA blog and resource pages provide advice on insurance.

USAA home insurance vs. the competition

Great for accessibility – Geico

Geico is not a major provider of home insurance, although we found that it ranks well in support and accessibility, according to our SimpleScore.

J.D. Power Rating

3/5

AM Best Rating

A++

Standard & Poor’s

AA+

SimpleScore

3.4 / 5.0

SimpleScore Geico 3.4

Discounts 2

Coverage Options 2

Customer Satisfaction 3

Accessibility 5

Geico got its start providing insurance coverage to government employees and provides affordable home insurance to a broader customer base than USAA. You don’t have to be a government contractor or military personnel to get coverage. The issue is, Geico doesn’t underwrite all its policies — you may have coverage from a different insurer than you expected when you choose Geico.

Great for in-person service – State Farm

One of the largest home insurance providers in the country, State Farm offers independent agents across the U.S., something you might value if you prefer to be face-to-face.

J.D. Power Rating

3/5

AM Best Rating

A++

Standard & Poor’s

AA

SimpleScore

4 / 5.0

SimpleScore State Farm 4

Discounts 2

Coverage Options 5

Customer Satisfaction 3

Accessibility 5

State Farm ranks high in customer service, but not as high as USAA. Nevertheless, if you can’t qualify for USAA membership, State Farm is a great option. The insurance carrier is the largest in the country for good reason — State Farm is known for its top-notch service, variety of coverages and user-friendly website and mobile app.

Great for customer support – Progressive

While not at the top in customer satisfaction, according to J.D. Power, Progressive scores 5 out of 5 in support and accessibility in our SimpleScore.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

AA

SimpleScore

4.2 / 5.0

SimpleScore Progressive 4.2

Discounts 3

Coverage Options 5

Customer Satisfaction 3

Accessibility 5

When comparing Progressive to USAA, the main thing to consider is who you’ll be dealing with. USAA writes its own policies. Progressive and Geico both partner with a variety of insurance companies, meaning you’ll ultimately need to deal with a different insurance provider. Still, Progressive is worth considering if you’re on a strict budget and the cheapest home insurance is a priority — Progressive has more homeowners insurance discounts than USAA.

Getting a USAA insurance quote

USAA homeowners insurance is lauded for being affordable. Too many factors come into play that could affect your homeowners insurance rate to ballpark one. The main factors that will determine the cost of your USAA home insurance include the declared value of your home and its contents, your claims history and the ZIP code.

Location can make a huge difference in your premiums. If you live in an area at risk for wildfires or with higher-than-average crime or theft, your home insurance premiums may be considerably higher.

[ Read: The Average Cost of Home Insurance ]

USAA online and mobile app

USAA provides policyholders with a mobile app and online access, but the insurance carrier isn’t doing anything revolutionary when it comes to the digital sphere. Still, the website and app make up for the lack of USAA local agents and offices.

A unique feature other insurance carriers don’t offer is the USAA community. The section of the USAA website includes a blog about insurance, related news and financial planning. You’ll also have access to the USAA community where you can ask other service members questions about finance, insurance services, claims and more.

USAA auto and life insurance

Besides USAA homeowners insurance, this company provides a variety of other insurance coverages and financial services so you can handle coverage and banking all in one place.

Auto insurance

USAA provides the same high level of service when it comes to car insurance. Bundle more than one policy or vehicle to maximize the savings on your insurance needs. USAA auto insurance is designed for military personnel. It’s the only insurer that provides you with coverage if you drive your car overseas. Or you can leave your car behind and receive a price reduction for storing your car while you’re away.

Life insurance

If you have loved ones who depend on you, a life insurance policy from USAA can provide them with a cash payout to cover bills and funeral expenses, pay off a home mortgage or fund college for the children you leave behind. USAA provides low-cost term life insurance or permanent coverage through its whole life insurance policy as an option.

[ Next: How to Compare Home Insurance Policies ]

Bundling discounts

When you bundle auto insurance, you may receive up to 10% on the overall cost of your home and auto insurance. Best of all, you can take advantage of multiple discounts, such as safe driver and new home discounts, in addition to the premium reduction you’ll receive when you bundle your insurance.

USAA in the news

  • USAA pays dividends to auto insurance policyholders. The insurer announced $800 million would go back to members, equivalent to 20% off premiums for three months. It recently announced another round of dividends amounting to $270 million.
  • USAA has signed a deal with Charles Schwab to provide USAA members with wealth management and financial services through the brokerage firm.
  • In light of the COVID-19 pandemic, USAA’s claim process is now nearly 100% virtual from start to finish.

Too long, didn’t read?

USAA is the highest-rated homeowners insurance company when it comes to customer satisfaction. Unfortunately, coverage is only available to those who can qualify for membership because of military service (or being related to a veteran or personnel). If you can meet the requirement, you’ll enjoy full replacement cost home insurance coverage from a financially-solid carrier.

We welcome your feedback on this article and would love to hear about your experience with the home insurance providers we recommend. Contact us at [email protected] with comments or questions.

Source: thesimpledollar.com

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Why You Should Buy Less House Than You Can Afford

When it comes to real estate, the more you spend, the more money everyone makes. And it happens on every level of your home purchase.

The costs start adding up once you find the perfect place. According to the National Association of Realtors, real estate agents get paid by taking a percentage of the purchase price of your home. In other words, the more you spend, the bigger the payday. And the bigger the loan, the higher the closing costs and borrowing fees tend to be – a benefit that goes directly from your pocket to your lender’s.

In case you were wondering, this is why your real estate professional may pay little attention when you tell them you only want to spend X number of dollars on a new home. It’s not that they aren’t professional, or that they don’t care about your financial situation; it’s just that they only stand to benefit if your budget creeps up a few dollars here or there.

And what’s a few thousand dollars between friends?

In this article

How much to spend on a house

I know – I’ve been there. When my husband and I moved to a new town last year, our income qualified us to spend 300% more than we planned. And even though we told our Realtor what our intentions were, it didn’t stop her from suggesting houses outside our comfort zone. In fact, I remember having plenty of conversations about it, and getting advice like this:

“You know, for every $1,000 you spend, your payment will only go up $16.”

“Your kids are getting older – you need a house you can grow into.”

“Interest rates are so low. You can get a lot more house for your money in today’s market.”

In the end, we bought exactly what we wanted, and actually spent less than we planned. And it didn’t end up that way just because we’re cheap; we based our decision on our shared beliefs and goals.

Still, the principles that steered us toward a less expensive home don’t just apply to us; they could apply to your situation, too. There are some really good arguments against borrowing as much as you possibly can. Here are some of them:

What goes up might come down

Decades ago, most people believed housing prices would keep climbing for eternity. I remember my mom telling me years ago that, when she and my dad bought their first home, their Realtor pushed them to borrow as much as possible.

“The more you buy, the more appreciation you will see over time,” they were told.

And that notion made sense at the time. After all, land is a limited commodity, and a growing population will always need somewhere to live. Housing prices should go up forever, in theory. The problem? Just because they should doesn’t mean they will stay that way.

In fact, the housing crisis of 2007-08 proved that market corrections are somewhat inevitable. Although some regions remained relatively unscathed, housing prices dropped an average of 30% nationwide. According to Forbes, some of the most overvalued housing markets, such as Las Vegas, saw housing values drop as much as 60% from 2006 to 2011. And other big markets followed suit. For example, the Chicago area witnessed a 40% drop in real estate prices, Detroit endured a 50% correction, and Phoenix saw housing prices plummet as much as 56%.

If you plan on living in your home forever, you may not care how much your new house will be worth. But what if you need to move?

Need an example? Picture this: Two families are shopping for a house in the same neighborhood. Family A drops $400,000 on their dream home, while Family B spends only $200,000. If housing prices drop 20% over the next two years, which family will be better off? (Hint: Family A would lose twice as much equity as Family B — a difference of $80,000!)

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How do people afford houses? A bigger house means everything costs more

But even if housing prices go up, some costs are inevitable. No matter how much house you buy, the sticker price is only one piece of the puzzle. And when you buy a bigger or more expensive home, almost everything costs more.

For example, more space generally means more square footage to heat and cool — in other words, higher utility bills. And nicer, more expensive properties almost always mean higher property taxes and pricier homeowners insurance premiums.

But that’s not all. A bigger house means everything is bigger and more expensive to repair. A bigger roof will cost more than a small one, and the more windows you have, the more expensive it will be to upgrade or replace them. Flooring is typically priced by the square foot, so more carpet and tile will always lead to higher costs. A bigger yard means more landscaping and a longer driveway means more concrete to pour. The list goes on, and all of those additional costs can add up quick.

Kids need more than room: They need money

It’s true that kids may benefit from some extra space in the house. They’ll need a place to bring friends when they come over to visit, and it’s always nice when teenagers are able to have their own room.

But you know what’s better? Having money to help your kids through college. Being able to afford a really nice family vacation each year. Having the extra money to pay for the important things your kids will inevitably start asking for as they grow older – fees for school trips, sports, and activities, spending money for weekends, and even their first car.

Buying a house you can easily afford can mean the difference between having extra money for your kid’s changing needs and being house-poor and unable to afford much of anything. That bonus room above the garage might be nice, but not so much when you consider what you had to give up.

Don’t forget to save for everything else

Speaking of giving things up, the extra money for a bigger house payment has to come from somewhere. By and large, Americans have large houses but tiny bank accounts. According to a recent survey, the average middle-class worker has a median savings of around $20,000 for retirement. Further, a full third of working middle-class adults aren’t contributing anything to retirement at all – not in a 401(k), Roth IRA, or any other retirement savings vehicle.

The poll in question, which was conducted by Harris Poll and included 1,001 middle-class adults ages 25 to 75, also proved we aren’t great at planning ahead. According to results shared in USA Today, around 55% of participants planned to save more for retirement when they’re older to make up for any shortfalls.

If a bad idea ever existed, that would surely be it. Why? Because compound interest needs time to work its magic – and the later you start saving, the less power it will have.

Simply put, if you want to retire one day, you need to start saving today — or maybe yesterday. Not doing so will only cause you grief down the line or delay your retirement altogether. Simply put, when you buy a house that is unaffordable, you will have fewer dollars to sock away for your future self.

Your mortgage doesn’t have to be forever

Most people get a 30-year mortgage and pay that monthly payment until the cows come home. Unfortunately, that usually means they never really own a home until the bitter end.

But wait – do people really stay in their homes for 30 years anymore? According to the National Association of Home Builders, the answer is no. In fact, recent data show the average family only stays in their home for around 12 years.

So if you opt for a 30-year-mortgage each time you move, it could easily mean you’ll be making that monthly payment your entire life. Frugal friends, is there anything more depressing than that?

Fortunately, it doesn’t have to be that way, which leads me to the next reason it makes sense to borrow less than you can afford. Obviously, the less you borrow, the faster you may be able to pay it off. And if you buy a house that is on the lower end of your budget, you may even be able to afford the monthly payment on a home loan with a shorter term.

Imagine paying your house off within 15 years and all of the financial freedom that would afford you. Big, expensive houses may have their own set of benefits, but being debt-free will be priceless.

When life happens, you’ll be prepared

Good health, youth, and job security are often fleeting. In other words, the amazing standard of living you’re experiencing now isn’t guaranteed to last. Further, a study from 2014 showed that as many as 25 million middle-class families are living paycheck to paycheck, meaning they might only be one illness – or one job loss – away from losing it all.

Look at the monthly financial obligations you have and ask yourself how you would meet them if you or your spouse lost your job, got in a debilitating accident, or experienced any other hardship that resulted in a loss of pay. Would you be OK? Could you easily afford your bills? If the answer is no, then you should try to buy even less house than you have now, and certainly not more!

The bottom line: Tragedies happen every day, but if you leave some breathing room in your monthly budget, you will be much more equipped to take them in stride. And if something unfortunate happens to one of you, having a small, manageable payment might mean the difference between keeping your home – and losing everything.

Should I buy a house?

Most mortgage companies believe your total debts should make up no more than 36% of your total gross income in any given year. So when they decide how much you qualify to borrow, they use that figure as a guideline. While other liabilities such as car payments, child support, taxes, and insurance can eat into that amount, 36% is still a pretty generous place to start.

The thing is, even the best mortgage lenders don’t know what kind of lifestyle you live. It doesn’t know if you want to help your kids with college, or if you prefer to take two family vacations every year. They’ve never listened to you talk about your dream to retire early and spend your golden years as you wish. To them, you’re just a number on a page. And they’ll be long gone by the time you realize you’ve bitten off more than you can chew.

That’s why it’s up to each of us to decide what we can truly afford to borrow. It’s up to each of us to set a price range we can live with, and not just one we can live with today, but tomorrow, too.

It all boils down to choices; when you spend less than you can afford, you have them, and when you overspend, you don’t. Just remember to look beyond this year, and even this decade, when you make that choice. You might be giving up more than you think.

Compare top mortgage lenders

Source: thesimpledollar.com

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Source: thesimpledollar.com

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MetLife Auto Insurance Review

MetLife is perhaps best known for providing life insurance, but auto insurance is also available, and we found with our proprietary SimpleScore that this insurance carrier has a lot to offer.

With a 4 out of 5 in claims satisfaction, and a 5 out of 5 with coverage options, MetLife is more than competitive. However, it doesn’t rank well with accessibility, scoring only a 3 out of 5.

In this MetLife car insurance review, we’ll walk through the insurance provider’s strengths and weaknesses, how it compares to its competitors and how it fares in our SimpleScore model.

Our methodology

When looking at MetLife’s features, we study how it scores on our SimpleScore model in discounts, coverage options, customer satisfaction, accessibility and support. We also look at MeLife auto insurance reviews and its competitors through the lens of leading reviewers such as J.D. Power and Consumer Reports.

J.D. Power, for example, studies purchase experience satisfaction as well as claims satisfaction, while Consumer Reports looks at features like premiums, claims, service and policy reviews.

Great for claims satisfaction – MetLife

MetLife provided life insurance to Civil War soldiers, and has been going strong since. It performs well in claims satisfaction, according to Consumer Reports, with a 4 out of 5, although service and policy review were each a 3 out of 5.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

AA-

SimpleScore

4 / 5.0

SimpleScore MetLife 4

Discounts 2

Coverage 5

Customer Satisfaction 3

Accessibility 5

  • Established American company
  • Seeks to remain competitive
  • Good coverage options
  • Poor customer satisfaction
  • Not the cheapest rates
In this article

MetLife car insurance at a glance

In business Since 1868
States served 50
Best for New car owners
Not for People who place a high value on customer service
Standout features Deductible savings benefit
Gap coverage
New car replacement
Custom sound system coverage
No deductible for glass repairs
Special car parts replacement
Usage-based insurance
Available bundles Home, auto, life and health

[ Read: What’s the Average Cost of Car Insurance in the US? ]

What we like about MetLife auto insurance

Beyond basic auto insurance

MetLife offers unique extras most other auto insurance companies don’t have. Gap coverage and custom sound systems are allowed under its policies. MetLife also offers to reimburse legal fees if you are sued after an accident.

Rideshare drivers get coverage

Uber and Lyft drivers are covered while working. Many people make extra money or their main living offering rideshares. MetLife is one of the only auto insurance companies to offer rideshare insurance.

Things to consider

MetLife encourages high credit score

MetLife auto insurance consistently offers the best prices to the customers with the highest credit scores and brand new cars. Only when a customer comes has a 600 credit score range or higher does MetLife come close to auto insurance titan Geico for a reasonable premium.

MetLife Auto Insurance vs. the competition

Great for low cost – Progressive

Low prices and gap coverage make Progressive a contender against MetLife.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

AA

SimpleScore

4.2 / 5.0

SimpleScore Progressive 4.2

Discounts 4

Coverage Options 5

Customer Satisfaction 4

Accessibility 4

This provider turned out to have the lowest quote, and it’s known for its consistently affordable pricing. Like MetLife, Progressive offers gap coverage, which is a nice option to have if you still have a lease or loan on your vehicle. Its customer satisfaction ratings aren’t stellar, but it outperformed MetLife in most regions.

Great for safety-driving rewards – Allstate

Plenty of discounts and safe driving rewards make Progressive a good choice for safety-savvy drivers.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

A-

SimpleScore

4.4 / 5.0

SimpleScore Allstate 4.4

Discounts 3

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

It has the most extensive list of discounts of any company on this list, but despite that, Allstate was my most expensive quote. Allstate may be a good choice for you if you’re looking to be rewarded for your safe driving. It offers extras like a vanishing deductible and Safe Driving Bonus Check that you won’t find with most insurers. It also has a claim satisfaction guarantee, which will give you a refund if you’re dissatisfied with the way your claim was handled.

Great for customer satisfaction – State Farm

The largest of U.S. auto insurance providers, State Farm is available throughout the country, and has more than 19,000 independent agents at your disposal.

J.D. Power Rating

4/5

AM Best Rating

A++

Standard & Poor’s

AA

SimpleScore

4.6 / 5.0

SimpleScore State Farm 4.6

Affordability 4

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

This is one of the best insurance providers in the industry in terms of customer satisfaction. State Farm’s rates may not be as low as some of the companies on this list, but they’re generally reasonable. There aren’t as many optional coverages to choose from, but if you’re looking for a standard auto insurance policy to cover all the basics, State Farm is hard to beat.

Great for savings on premiums – GEICO

Geico’s low rates and excellent discounts can help you save even more on your premium.

J.D. Power Rating

3/5

AM Best Rating

A++

Standard & Poor’s

AA+

SimpleScore

4.8 / 5.0

SimpleScore GEICO 4.8

Discounts 5

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

This is another company known for its low rates, so it’s a good choice for anyone on a budget. It also has a ton of vehicle and driver discounts, which could help you save even more. In terms of customer service, Geico received mixed reviews, but it still outscored many of its competitors, including MetLife, Geico and Allstate.

[ Read: Best Car Insurance Companies ]

MetLife auto insurance rates 

MetLife Insurance strives to provide quality auto insurance at an affordable rate. Its customer service is available 24/7 to answer questions and its online and mobile tools give you convenient access to your policy wherever you go.

You won’t know how much your auto insurance is going to cost you until you get a quote. Insurance premiums are personalized for you, taking factors like your age, driving record, vehicle and address into account. While all insurers look at the same information, every company weighs it slightly differently, which is why you end up with such variance in quote prices.

You should compare quotes from several companies before making a purchase, but don’t choose a company based on price alone. Make sure you go with a company that’s financially stable and is known for efficient claims handling. This is worth paying a little extra because it’ll save you a lot of stress when you need to file a claim.

MetLife goes beyond the basic auto insurance coverages to offer extras, like custom sound system and gap coverage, that are hard to find elsewhere. It also offers new car replacement for vehicles less than a year old and glass repairs without a deductible. If you get sued as a result of an auto accident, MetLife will even pay your legal fees.

[ Read: Best Cheap Car Insurance Companies ]

MetLife’s auto insurance coverage 

  • Gap coverage: This coverage pays the balance of your lease or loan if your vehicle is totaled in an accident. Most insurers only pay the actual value of your car, which may not be enough to cover what you owe. If you have a lease or loan on your vehicle, you may want to consider adding gap coverage to your policy.
  • Coverage for rideshare drivers: MetLife offers auto insurance to Lyft and Uber drivers, filling in the missing gaps left by traditional auto insurance to ensure these drivers are protected while working.
  • Legal defense coverage: If you’re sued in connection with a car accident, MetLife will pay for your legal defense and reimburse you up to $200 per day for lost wages.
  • Custom sound system coverage: If you have a custom sound system installed in your vehicle, you can purchase additional coverage to protect this. Most insurers we looked at in our MetLife car insurance reviews don’t offer this option, so if it’s something you’re interested in, MetLife is worth a closer look.
  • Protection against identity theft: MetLife is one of few auto insurers to offer optional identity theft protection coverage. This pays for lost wages, legal fees and other expenses associated with restoring a stolen identity.
  • Major parts replacement: MetLife will replace major vehicle parts — such as tires, batteries and brakes — with new ones, regardless of their current condition. Most companies only pay the actual value, which after factoring in depreciation may not cover the total cost of a new part. With MetLife, you won’t have this problem.
  • New car replacement: If your car is less than a year old and has less than 15,000 miles, you qualify for new car replacement. If your vehicle is totaled, MetLife will pay to get it replaced without factoring in depreciation.
  • No deductible on glass repairs: If a rock flies up and chips your windshield, you can get it fixed without paying a deductible. This coverage comes standard with its auto insurance policies.
  • Help if your car breaks down: MetLife offers roadside assistance and towing and labor coverage as optional add-ons to assist you if your car breaks down. And if your vehicle is going to be in the shop for a while, MetLife can also help you cover the cost of renting a vehicle in the meantime.

MetLife auto insurance discounts

Compared to most auto insurers, MetLife insurance doesn’t offer many ways to save. There are a few basic discounts, like multi-policy and claim-free discounts, but it’s missing other common options, like anti-theft devices and automatic payment discounts. Here are some discounts MetLife does offer.

Savings for good drivers 

Every year you don’t have an accident, MetLife will lower your collision and comprehensive deductible by $50, up to a maximum benefit of $250. This is half of the savings that most companies with vanishing deductible offer. However, the majority of insurers don’t provide this benefit to begin with, so it’s still something to be happy about.

Association discounts

MetLife offers excellent rates to members of its partner associations, including companies that offer MetLife insurance as an employee benefit.

Bundle discounts

MetLife offers bundles when you have more than one vehicle to insure, as well as when you stick with it for other coverage (such as home insurance, life insurance, renters insurance or health insurance).

Good student discounts

MetLife provides discounts to students who maintain a B average or higher. To qualify for this discount all you need to do is just send in a copy of your grades.

Group insurance discounts

You can get an average of 10 percent off or more if you own a business with business-owned vehicles.

[Read: Low Income Car Insurance]

How to submit an auto insurance claim with MetLife

You can call 1-800-854-6011 year-round, day or night, and an agent will walk you through your claim process.

MetLife auto insurance online and mobile app 

MetLife offers three mobile apps for Android and iOS devices that allow you to view your policy documents and pay your bill. If that’s not enough, a customer service agent is always just a click away.

  • MetLife App: The flagship app from MetLife allows you to manage every aspect of your MetLife policy all in one place. Users can upload information for auto claims, access information related to their dental plans and find a vision provider near them.
  • MyJourney: MetLife’s MyJourney program helps you drive more safely while providing you savings in the process. Upon signing up, you receive a one-time enrollment discount of up to 10%, and after renewing, can receive an adjusted discount of up to 30% based on your safe driving score. This score is calculated by the app, which runs in the background on your phone and highlights areas where your driving habits can improve to help make you a safer driver. The app is currently available in Connecticut, Delaware, Iowa, Maine, Minnesota, Michigan, North Dakota, New Jersey, Utah and Wisconsin.
  • MetLife Infinity App: MetLife Infinity is a powerful app to help you capture and securely store photos, videos, audio and important documents in one place. The app allows you to upload photos and videos and share them with family and friends at key milestones now or at any time in the future. The app is also handy for digital cloud-based storage of important documents such as birth certificates, passports and everything in between.

MetLife auto and home, health and life

MetLife covers virtually all of your insurance needs, including auto, home, health, life and personal liability.

  • MetLife home insurance: MetLife’s home insurance has guaranteed replacement cost coverage, impressive financial strength, basic coverage, identity theft coverage and scheduled personal property insurance. It also offers a few discounts such as home safety features, bundling and group discounts.
  • MetLife renters insurance: Renters insurance doesn’t cover the building you live in but your possessions. Electronics, jewelry, significant collections, furniture and other prized collections are covered and customized to your needs. In case of a fire, vandalism or other disasters, it can be an incredible help. MetLife offers some excellent add-ons.
  • MetLife health insurance: MetLife offers High High Deductible Health Plans (HDHP) best suited for those in good health with no dependents. There is also the Preferred Provider Organization Plans (PPO), which is best for those with existing health conditions or dependents. Much like any other policy with this company, it can customize it to your needs.
  • MetLife life insurance: MetLife offers life insurance coverage through workplaces, so you’ll find them through your employer. It offers term life insurance and permanent life insurance. It even has a feature called MetLife Advantages, which offers workplaces benefits that include grief counseling, travel assistance and will preparation, to name a few.

MetLife in the news

  • A former senior vice president of MetLife was sued for gender discrimination. According to Reuters, Mona Moazzaz, the ex-chief administration officer, filed a federal lawsuit in May of 2019 offering ample evidence of the alleged exclusionary, often prejudiced corporate nature of MetLife. 
  • MarketWatch reported in August of 2020 that MetLife’s profits fell again in the second quarter. Wall Street expected a better report on earnings. 
  • Business Wire announced on August 20, 2020, that MetLife is partnering with Barnum Financial, a wealth management company. The partnership will help them provide financial education to workplaces all over the United States.

Too long, didn’t read?

MetLife offers solid auto insurance coverage and reasonable rates. Despite its average customer satisfaction ratings, it’s worth taking the time to get a quote to see what kind of a deal MetLife Insurance can offer you.

We welcome your feedback on this article and would love to hear about your experience with the car insurance companies we recommend. Contact us at [email protected] with comments or questions.

Source: thesimpledollar.com

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The Best Homeowners Insurance Companies in Florida of 2021

We know you want to find out which homeowners insurance companies are the best, so we’ll get right to it.

When assessing home insurance companies, we looked at price, value and customer service. But we’ll get into that in a bit.

America’s top-rated home insurance

  • Policies starting at just $25/month
  • Sign up in seconds, claims paid in minutes
  • Zero hassle, zero paperwork

You might wonder, how can you get a Florida home insurance quote that has both adequate coverage and is affordable?

While location in the state is obviously a huge factor because of weather events like high wind and hurricanes, there are other concerns that decide your rate, including age of the home and the roof’s condition.

We’ve researched the top six homeowners insurance companies and compared them using our SimpleScore methodology to help you find the right company and coverage for your needs.

Methodology

To arrive at our choices in home insurance companies, we reviewed coverage options, available discounts, customer satisfaction, support and accessibility to assess the top home insurance companies in Florida. This allows us to create our SimpleScore.

We also referenced Bankrate, Insurance Information Institute, Consumer Reports, J.D. Power and other authoritative organizations to arrive at our decisions.

In this article

The best home insurance in Florida of 2021

Great overall – State Farm

State Farm is a great insurance provider for homeowners who want a reputable company with good customer service, flexible coverages and low premiums.

J.D. Power Rating

3/5

AM Best Rating

A++

Standard & Poor’s

AA

SimpleScore

4 / 5.0

SimpleScore State Farm 4

Discounts 2

Coverage Options 5

Customer Satisfaction 3

Accessibility 5

State Farm is a nationwide insurance company with a long-established history of top-notch customer service. There are 19,000 independent agents, so you have a good chance to find a State Farm agent with the right coverage in your area.

State Farm’s exact insurance rates vary by state and individual situation, but the company offers a few discounts to help homeowners save money on their insurance.

Additionally, State Farm stands out for its customer reviews. In J.D. Power’s 2020 U.S. Home Insurance Study, State Farm was rated 7 out of 24 for overall customer satisfaction. The company has also demonstrated financial stability with an A++ rating from A.M. Best.

Great for damage amount – USAA

USAA received some of the top scores with Consumer Reports, including 5 out of 5 for damage amounts and timely payments, due to satisfaction from customers in both categories.

J.D. Power Rating

5/5

AM Best Rating

A++

Standard & Poor’s

AA+

SimpleScore

4.6 / 5.0

SimpleScore USAA 4.6

Discounts 3

Coverage Options 5

Customer Satisfaction 5

Accessibility 5

USAA has industry standard coverage options like dwelling, personal belongings, liability, loss of use, other structures, home sharing and earthquake. And there are also military-specific perks for active duty and deployed members like coverage for uniforms if lost or damaged.

The company ranks high among insurers for its customer satisfaction. USAA earns top marks from third-party surveyors for its communication, billing process, claims, cost of service and policy offerings. You can find similar perks and service quality with its other insurance policies like auto, life and more niche insurance like pet, small business, travel or special events.

Great for bundling – Allstate

Allstate’s bundling options make it a strong choice. With auto, home and motorcycle insurance available, you can maximize your discounts.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

AA-

SimpleScore

4.4 / 5.0

SimpleScore Allstate 4.4

Discounts 4

Coverage Options 5

Customer Satisfaction 3

Accessibility 5

Floridians looking to save money have the great opportunity with Allstate. Discounts include a 10% welcome discount, 5% for setting up autopay and for being over the age of 55 and retired. You can also find policy discounts for remaining claim-free, installing fire protection devices, purchasing a new home, being a smoke-free home and having protective features like storm shutters.

Allstate might grant members 10% off an auto policy and 25% off home premiums for bundling auto and home insurance. You can bundle your policy with life insurance as well at varying discounts. We recommend calling a local agent for specific opportunities.

Florida’s best regional home insurance companies

Great for low rates – Universal Property & Casualty

Universal Property & Casualty offers home insurance discounts with a lot of options.

J.D. Power Rating

N/A

AM Best Rating

A-

Standard & Poor’s

N/A

SimpleScore

4.3 / 5.0

SimpleScore Universal Property & Casualty 4.3

Discounts 4

Coverage 4

Customer Satisfaction N/A

Accessibility 5

Despite being a subsidiary of the largest insurance provider in Florida (Universal Insurance Holdings), Universal Property & Casualty’s online presence isn’t as strong as some of the other companies that dominate the Florida home insurance market. However, it makes up for that by offering some of the lowest rates depending on your specific circumstance.

Universal prides itself on its superior customer service, and it offers assistance from a real person. During times of natural disaster or catastrophe, Universal still allows policyholders to file claims 24/7 by rerouting them through an efficient automated system and having representatives reconnect with them.

Universal Property & Casualty may be a great choice for Floridians who are on a budget. The company offers discounts for having home protective equipment, being claims-free, being a loyal customer, having a new roof, bundling policies, having windstorm-protective features, and being over the age of 65.

Great for customer service – St. John’s Insurance

St. Johns offers standard home insurance, with limited coverage. However, the company stands out for its personalized customer service and friendly agents.

J.D. Power Rating

N/A

AM Best Rating

N/A

Standard & Poor’s

N/A

SimpleScore

2.3 / 5.0

SimpleScore St. John’s Insurance 2.3

Discounts 2

Coverage 1

Customer Satisfaction N/A

Accessibility 3

St. Johns is a privately held Florida company that specializes in homeowner’s insurance products. In addition to home insurance, St. Johns also sells condo, landlord and personal umbrella insurance. We chose St. Johns as a great home insurance provider in Florida because of the top notch customer service.

Though you can expect a high level of expertise from a company with such a specialized focus, policyholders are unable to benefit from multi-policy discounts that larger, more diversified companies can offer. However, St. Johns boasts an A rating in financial stability from Demotech, Inc., excellent customer service and competitive pricing for its policies, making St. John a top provider of Florida home insurance.

Great locally based provider – Florida Peninsula Insurance

Florida Peninsula has good coverage, excellent financial strength and great reviews across the board.

J.D. Power Rating

N/A

AM Best Rating

N/A

Standard & Poor’s

N/A

SimpleScore

3.3 / 5.0

SimpleScore Florida Peninsula Insurance 3.3

Discounts N/A

Coverage 5

Customer Satisfaction N/A

Accessibility 2

Experience handling hurricane claims is a selling point for Sunshine State property owners. Policyholders can file claims not just by phone but also online and take advantage of a robust learning center on the company website.

One potential drawback is that the company serves “just about” every Florida city, which doesn’t guarantee that coverage is available in your area.

Average cost of homeowners insurance in Florida

The average cost of homeowners insurance premiums in Florida was $1,960, the Insurance Information Institute found for 2018, the most recent year for this data. That compares to the national average of $1,249 for the same year.

(These figures are based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. It provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.)

Florida ranked second for average homeowners insurance premiums, behind only Louisiana. The lowest? It was Oregon at $706 a year.

Rank State Average premium
1 Louisiana $1,987
2 Florida $1,960
3 Texas $1,955
4 Oklahoma $1,944
5 Rhode Island $1,630

Choosing a national or a local Florida insurance company

Florida is one state in particular that has a lot of regional insurance providers to choose from, like the Florida Peninsula Insurance Company, in addition to the usual big-name companies like State Farm and Allstate.

Pros and cons of Florida home insurance companies

Pros Cons
Personalized service Not available everywhere
Local access Can offer more dated technology
Regional expertise

Pros and cons of national carriers

Pros Cons
Can provide more services Lack of regional coverage
Usually has a greater service area More difficult to receive personal assistance
Better technology and growth

Things to know about home insurance in Florida

Keep in mind that homeowners insurance rates in Florida will be heavily impacted by geographical location. Coastal areas of Florida may see higher rates than inland areas due to the increased risk of hurricane damage. For example, a property in the Keys could face much higher insurance premiums than a city located in the middle of the state.

What type of home insurance coverage do I need in Florida?

Coastal insurance agencies may encourage specific coverage for hurricane-related damages. Your insurance agent may also recommend purchasing flood insurance.

Hurricane insurance in Florida

Florida homeowners insurance includes hurricane coverage, however, you may have a higher hurricane deductible, separate from your standard deductible. A hurricane deductible will only apply if you file a claim for hurricane-related damage.

Hurricane deductibles usually range between 2% and 10% of the value of your property. In Florida, you also have the option to get a $500 deductible, but your annual premium may be much higher. You need to decide if you’d rather pay a higher rate on an ongoing basis, or take your chances and pay a higher deductible before reimbursements kick in when you file a claim.

Also, your agent may discuss with you “wind-driven rain.” Having this extra line item may protect you from rain that causes damage because wind pushed it in an opening.

Flood insurance in Florida

Although flood insurance does not come in a standard policy, obtaining a flood insurance policy in states like Florida is popular.

Flood insurance may protect you in the event of water overflow caused from things like hurricanes, landslides and earthquakes.

[ Read more: Understanding Your Homeowners Insurance Declarations Page ]

Florida home insurance requirements 

Home insurance isn’t required in Florida, but your mortgage lender may still require some form of it until your home’s loan is paid off to help cover your mortgage.

Even though home insurance isn’t required, many opt for it in case the unexpected happens. Your policy coverage can help cover repair costs if there’s ever a break-in or severe storm. Overall, home insurance might cover property damage, belongings and repairs in specific situations.

Types of home insurance policies in Florida 

There are different types of home insurance for Florida residents. Your policy depends on your home’s structure and your personal needs. Some policies will cover the home’s structure, while other insurance choices have a few exceptions. It’s best to speak with your insurer to find the best coverage for your Florida home.

Mobile home: Mobile home insurance protects a manufactured or mobile home from damage. Most mobile home policies also cover your valuables. If your insurer doesn’t offer mobile home insurance then dwelling insurance coverage is an alternative that can cover your home and belongings.

Renters: Renters insurance can cover the tenant’s belongings and liability, but this policy doesn’t cover damage to the rental apartment, townhouse or condo as that is covered by the landlord’s policy.

Owner-occupied: This insurance is typically for an owner’s primary single-family home. Owner-occupied insurance is better known as “homeowner’s insurance” to cover the home structure and valuables.

Condo unit: Condo owners usually get condo insurance to cover what your homeowners association (HOA) won’t cover including unit damages, liability and stolen valuables.

Florida home insurance FAQs

Home insurance in Florida is not mandatory, but mortgage lenders may require it. Your agent may recommend home insurance if you’re going to live in Florida where the risk of natural disaster is high.

Under a replacement cost homeowners policy, your home is covered for the amount it would cost to replace your home and home contents at current costs. Under an actual cash value policy, your home is covered for replacement cost minus depreciation.

Most standard policies include coverage for hurricanes or other natural disasters, however some exceptions, such as floods and earthquakes, may apply. Speak with your insurance agent about adding coverage to make sure you have protection from the disasters most likely to happen in your area.

Home insurance rates in Florida are based on a few factors, and each insurer has different coverage options at different rates. As you shop around you’ll find that most rates take into account the home’s location, age, construction and square footage. You may also get credit for systems that help reduce damage such as a professionally monitored security system to reduce the risk of theft.

America’s top-rated home insurance

  • Policies starting at just $25/month
  • Sign up in seconds, claims paid in minutes
  • Zero hassle, zero paperwork

Too long, didn’t read?

In a state like Florida where tropical storms, hurricanes and flooding can wreak havoc, your agent may recommend home insurance to protect your home and belongings. Be sure to research your options to find the best coverage for your neighborhood in Florida. And be aware that Florida home insurance quotes can be higher than in other states, but we have some tips on things that can help you lower the cost of your home insurance policy.

We welcome your feedback on this article and would love to hear about your experience with the home insurance companies we recommend. Contact us at [email protected] with comments or questions.

Last editorial update – January 7, 2021, updated reviews of insurance companies and added advice to homeowners insurance buying guide.

Source: thesimpledollar.com