Florida Insurance FAQ For Canadians

Florida and California have the two most challenging insurance markets in the U.S. California has Fire and Earthquake risks as well as social challenges. Florida has Hurricanes and a very litigious liability environment. Florida is far better off than California. For low insurance costs move to Manitoba or Mississippi. The Florida market is improving in 2025. Location and individual underwriting factors are important considerations.

No. Insurance will cost more than you pay up north but should not be prohibitive. Florida insurance costs are making it difficult for low-income residents, those on fixed income, or people in older homes. Insurance is not stopping people from buying their retirement, vacation, or dream home in Florida. Home insurance costs can be reduced considerably with a new home or utilizing Florida’s Wind Mitigation premium savings provisions. Auto Insurance premiums will be higher than in Canada but are not prohibitive.

In December 2023, the state legislature passed sweeping insurance reforms aimed at reducing home and property insurance premiums. The results have been a huge decrease in suspicious or abusive claims. These changes are bringing new and additional insurance carriers into the Florida market and helping to lower premiums. The new law combined with lower reinsurance premiums are improving the availability of property insurance.

The large national Insurance companies largely left the Florida Property Insurance market in the early 1990s. They have only returned through subsidiary companies created to limit their claim risk. These same companies continue to write Automobile and other forms of insurance in Florida. Just not Home and Business property insurance.

The Florida Property Insurance market is dominated by a combination of Domestic [Florida based] insurance companies and Excess & Surplus Lines [E&S carriers]. The High Value Home Insurance market is partially served by the Private Client Insurance companies [Chubb, AIG, PURE, Vault, Nationwide, Cincinnati]. These companies generally require a complete account relationship. They are very selective in underwriting new business in the southern sections of Florida.

This is a company, typically based in Florida and created to fill the void left by the departure of national insurance carriers from the Florida property insurance market.

No. Some of these companies have expanded beyond Florida, in an attempt, to spread the risk from a large Florida Hurricane.

Caveat Emptor. Be cautious. Be informed. Some of these companies are well managed and have a respected history. The largest has been in business 50 years and writes one Billion dollars in premium. New companies seem to be appearing every month [resulting from the 2023 law changes and high premiums]. Florida does not require a large capitalization to start an insurance company. New carriers rely on reinsurance to write business with a degree of safety. In recent years over a dozen Domestic carriers have failed. Some have been resurrected and rebranded. The new insurance companies are run by a mix of smart insurance people and financial opportunists looking to profit from Florida’s high premiums.

The Florida economy requires an active and open insurance market. No insurance = no mortgages = strangled Real Estate market. Florida requires a viable insurance market to support its retirement and vacation economy.

No, there are usually other options. Citizens, is the state-run residual insurance carrier [see later comments on Citizens]. E&S insurance companies readily write Home Insurance. Premiums from E&S carriers are generally higher than Domestic companies. Policy terms and conditions from E&S carriers are normally not favorable.

No, absolutely not.

• Some have long histories and have been through major hurricanes.
• Some are investor capitalized. Others require policyholders to provide capitalization [called surplus contributions].
• Many new carriers, and some existing carriers, include unfavorable policy terms and conditions such as requiring insurance company owned contractors to be used for repairs.
• Claim services vary.
• Reinsurance amounts, terms, and conditions vary. Remember, these companies are dependent upon reinsurance to pay catastrophe claims. Reinsurance is Very Expensive.

No, it is very rare for a Domestic Florida company to have a rating from A.M. Best & Co.

A rating by A.M. Best & Co. provides a degree of financial security and comfort. Domestic Florida Insurance companies are ‘Admitted’ and regulated by the Florida Office of Insurance Regulation. Policyholders of ‘Admitted’ companies have protection from the Florida Insurance Guaranty Association [FIGA]. FIGA provides a limited degree of financial protection in the event an ‘Admitted’ company fails. E&S Company policyholders are not protected by FIGA.

Recommendation: Speak with a trusted insurance professional for their input on the security and service provided by potential Florida insurance companies.

• The unrated company may offer low premiums.
• The unrated company may have relaxed underwriting guidelines.
• Insurance from a better carrier may not be available.
• The agent may not be experienced.
• The agent may not have other insurance companies’ options.

YES, 90–95% of the time. Florida has an open and viable insurance market. Unless there are negative underwriting issues insurance should be available.

• Age and condition of the dwelling.
• Commercial, rental, or other non-residential use.
• Age of roof, plumbing, hot water heater.
• Existing damage.
• Unacceptable plumbing or electrical components.
• Prior claims at the address.
• Prior claims by the applicant.
• Location or home value.
• Flat roof or unacceptable roof construction.

There is an available insurance market for SF homes, Townhouses, and Condos. As a rule, SF homes are the easiest to insure and have more insurance options. Townhouses, HOAs, and Condos present additional underwriting issues.

Yes, Florida’s Home Insurance premiums are among the highest in the country.

Yes, Florida had a very aggressive Wind Mitigation Program created to reduce premiums on homes that have sufficient Wind protection safeguards. [See Florida’s Insurance Inspections, Chapter 5] Property premiums vary greatly depending on the location, age, construction, and Hurricane/Wind safeguards. New homes meeting current building code standards get reasonable premiums and have numerous insurance options. Homes in the center or northern parts of Florida are less expensive to insure.

This program was created 30 years ago to guarantee Floridians that they could afford to live in their homes. The core of the program is a series of insurance rules that provide mandate premium credits for homes built or renovated to be wind resistant and meet current building codes.

Wind Mitigation Credits can reduce a premium by 70%.

A Wind Mitigation Inspection certifies the construction features, Age, Materials, Design, and Wind protection features of a home [Single family, townhouse, or condo.]. Insurance companies must allow premium credits for the beneficial characteristics indicated in the inspection. This inspection is used to determine premium credits and the final premium cost for numerous types of property insurance. The most common use is for Homeowners Insurance.

A Four Point Inspection comments on the age, condition, brand, and type of a home’s Roof, Plumbing, Electrical, and HVAC systems. This inspection is used by underwriters to determine if they will insure a property. While the Wind Mitigation impacts premium cost, the Four Point determines insurance eligibility.

Underwriting procedures vary by insurance company. For a home less than 10–15 years old it is possible to obtain a reasonably close premium estimate without these inspections. The final premium may depend on inspections or a physical inspection of the home. For homes built prior to 2005, it is unlikely that any premium estimate will be accurate without these inspections being received by the underwriting company.

Yes, many will quote without these inspections. Premium estimates without these inspections are only guesses or a sales prop.

Excellent question. You need to ask them. For sure some agents quote without inspection because:

• Some prospects, realtors, and lenders want a quick premium quote.
• It is much easier and less expensive to quote without inspections.
• Obtaining inspections can be time consuming for agency staff and inconvenient for clients.
• An agent wanting to provide a cheap premium, can do so by estimating mitigation credits and ignoring potential underwriting issues in a Four Point Inspection.

No. Insurance companies are regulated by the state and reinsurance companies. Underwriters must follow approved rating and underwriting procedures. Companies will not honor incorrect premium estimates.

The following are common results when underwriters learn of accurate information:

• The insurance carrier declines to bind a policy when the bind order is received.
• The premium is adjusted when the inspections are received and processed.
• Policy terms, conditions, values, and/or premium is adjusted when the results of the post binding property inspection is received [common within 30 days of binding].
• A policy cancellation is issued.

For most people, the answer is YES. The availability and the cost of insurance are important considerations for most buyers.

If the availability or cost of insurance, or financing are important, Insurance issues should be addressed early in the home buying process.

Realtors are licensed and knowledgeable on Real Estate issues. You are best served by having Legal, Finance and Insurance professionals advise you in their professional areas. Florida Insurance is a very complex and fast changing industry. Full time professional insurance agents struggle with keeping current in South Florida. Talk with a Professional!

Yes, in limited ways. For licensing reasons your home broker probably cannot provide insurance policies in Florida. Your trusted broker may be able to assist you in finding or selecting a professional Florida Insurance agent. Canadian and Florida insurance policies are similar. Your broker can review what you receive from a Florida agent.

Yes, being from a different country presents challenges. Insurance underwriters want to know your past insurance history, claims experience, driving record, credit record, etc. A lack of information will typically make insurance more difficult to obtain and increase initial premiums. Most of these problems can be overcome with time and effort.

• Find an insurance agent that has experience with insuring foreigners and will work to get the best results.
• Ask the agent questions about their experience insuring foreigners.
• Ask what insurance carriers they have that will insure a new person to Florida.
• Ask your home insurance broker/agent for a letter of introduction. This letter should include information on your past insurance history.
• Plan ahead. Do not wait until the last minute to address your insurance needs.
• Obtain a Florida Driver’s License for all drivers.

No. There are huge differences. Insurance agencies/brokerages are very different. They represent different insurance companies, selling different types of insurance to different target markets. Many agencies specialize in specific areas and do not like going out of their specialty area. Some firms are very service oriented while others are strictly sales offices. Individual agents/brokers come in all sizes and shapes. Knowledge, experience, client service, and trustworthiness are individual human characteristics.

This depends on the agency and the agent. Will they take the time and make the effort to reach out to your home agent/broker? Is this part of their standard service? Ask a prospective agent what they do to help/serve a new client from another country. If they provide a list of services done for a new foreign client you may be in the right place.

Canadians are still from a different country and therefore mean extra effort. The good news is that Canadian insurance procedures and policies are similar to Florida. Canadian Brokers are generally very professional and happy to cooperate. Our legal systems are similar. For all of these reasons insuring Canadians is easy for an agency with experience.

Citizens is Florida’s state-run insurance company of last resort. Citizens was created to provide insurance to people who could not obtain insurance from the open market.

Yes, subject to Citizens normal underwriting, Canadians can be insured with Citizens.

Citizens was created to provide basic insurance at a reasonable price to risks not welcomed in the open market. Citizens premiums can be competitive however coverage terms do not compete with the voluntary insurance carriers. Citizens policies are assessable. If Citizens loses money, policyholders can be assessed additional premiums. Citizens coverage terms are less favorable than most policies from the voluntary market. Citizens is the government. Take a number and wait your turn. Citizens employees work hard and try hard. Citizens is the government.

Your realtor or lender may be able to recommend good insurance agents to contact. Beyond a recommendation please do not take insurance advice from anyone other than an experienced, licensed professional insurance agent. Realtors and lenders are rarely licensed insurance agents. Their insurance knowledge is limited [and may be in error]. Insurance problems can make a real estate purchase a BAD BUY.

No, in Florida, you can buy and sell property without a lawyer. We recommend obtaining legal advice when buying or selling real estate.

A real estate purchase/sale is a major financial event. Your attorney will represent your best interests and only your interests. There are many legal issues that can arise before, during and after a sale/purchase. Money spent on a qualified Real Estate attorney is a good investment.

• Leaving insurance to the last minute when buying a property.
• Shopping for insurance without knowing what you want to buy.
• Not obtaining your insurance inspections in the negotiating process.
• Not using the insurance inspections in all possible ways.
• Failing to have an experienced insurance person review and advise on the inspections.
• Treating insurance as a commodity purchase, focusing on cost rather than value.
• Assuming an insurance quote is valid and eligible to be bound for policy issuance.
• Failing to fully disclose all pertinent underwriting information.

There is a great deal of information to be exchanged for your benefit. It is very important to provide complete and accurate information.

The vast majority of insurance agents are hard-working honest people. The real question is the extent of the knowledge and experience of the agent and if they are working on the client’s behalf or trying to sell a policy. Beware. Many agency personnel may not be licensed agents and obtaining a license is only a baseline for selling insurance. Licensed AGENTS range from inexperienced rookies to industry-leading professionals. We suggest asking about a salesperson’s experience, qualifications, and professional achievements.

The professional will take time to ask questions, learn about you, make suggestions, and provide options and guidance.

The salesperson will ask questions necessary to provide a premium quotation and focus the discussion on selling a policy.

There is no easy answer to this question, there are many important factors that should be considered and discussed with your professional advisors. Following is a random list of comments to serve as a basis for discussion on this important question:

• Can I afford to pay the premium (not do you want to; can you afford it!)
• Do you know the amount of financial risk you are assuming?
• A decision to self-insure substantial financial risks should be discussed with your financial advisors, family and/or significant others.
• What are the alternatives to self-insurance, have you considered these alternatives?
• Is self-insurance a thoughtful decision or an emotional “up yours” to the insurance industry?
• Do you understand that the risks of a substantial loss do not vary whether or not you have insurance?
• Is taking a risk of the amount you are self-insuring consistent with how you manage other aspects of your financial life?

• Age of house & age of roof
• Roof shape
• Exterior and structural hurricane protection
• Location and insured value
• Prior claims at this address or other home locations
• Use of home (primary, seasonal, rental)
• Deductibles and policy coverage terms
• Insurance score
• Quality and financial security of the insurance carrier
• Property title taken in any manner except for an individual and/or spouse

Insurance for residential properties leased on an annual basis is generally easy to obtain. Properties leased on less than an annual basis or through short-term rental programs such as Airbnb need to be disclosed to underwriters and insured in a manner reflecting their usage.

Yes, Florida’s community associations are undergoing significant financial, legal and management challenges. Buying into any community living format requires extensive due diligence on the history, financial condition, physical condition, legal issues, insurability, and management of the community. Community living has many advantages — it also comes with its own set of risks and challenges. Seek professional advice and do not underestimate the risks and challenges.

No! Your lender and realtor are knowledgeable in their areas. Very few lenders or realtors have insurance licenses or adequate insurance experience. Florida insurance is expensive and complicated. Get professional advice from an insurance professional expert.

E&S stands for Excess and Surplus Lines Insurance Company. These companies are also commonly referred to as being non-admitted. E&S companies are loosely regulated by the state, allowing them premium flexibility, coverage options, and freedom of operation. E&S companies can provide quality insurance and strong financial stability which may not be available from the standard marketplace. The use of an E&S company is not in itself good or bad, but should be discussed in detail with your insurance advisor.

In general, automobile insurance in Florida is similar to that in Canada. Florida has an open and competitive auto insurance market. Some carriers require applicants to have a Florida driver’s license. Obtaining insurance with a Canadian driver’s license may increase your premium cost and limit potential insurers.

Yes. Investment properties and rental properties need to be insured according to their use — generally insured under a commercial insurance format — typically not insured under a homeowners insurance policy.

Umbrella liability insurance is recommended for clients with significant assets, earning power or risk. We live in a very litigious world.

In the insurance world, a flood is inundation of normally dry land — think tsunami, overflow of rivers, ponds, creeks, lakes, dams breaking, torrential rains. Damage caused by water from the breaking or discharge of domestic appliances, hot water heater, dishwasher, ice maker, washer, etc., is not a flood. These losses are considered water damage and are typically insured in a homeowners insurance policy.

Flood insurance is available from the U.S. government (National Flood Insurance Program) and private market insurance companies. Florida is extremely flat topographically. It has swamps, rivers, drainage canals, lakes, is 95% surrounded by water, and is subject to tropical weather events. PEOPLE should seriously consider flood insurance in Florida.

A Flood Zone is a government determination of the potential and severity of Flooding for a specific property or location. In Florida properties are classified as being in a Low Hazard or High Hazard Flood area. All properties in Florida are in a Flood zone. If you are told a property is not in a Flood Zone, the person probably means it is in a Low Hazard Flood area.

A High Hazard Flood zone means there is an increased Risk of Flooding and the Severity of a Flood. Mortgage lenders require Flood Insurance for loans in a High Hazard Flood Zone. Flood Insurance is not normally required by lenders in a Low Hazard Zone. Flood Insurance is available in High Hazard areas however there are less insurance carrier choices. Insurance premiums and possible coverage limits vary significantly in High Hazard areas.

A Flood is generally defined as inundation of normally dry land. The Flooded area must be of a certain size to qualify for insurance coverage. Flooding normally occurs from natural causes such as excessive rain, overflow of rivers, lakes, ponds, streams, tidal surge etc. Flooding can be the result of manmade activities such as a dam or levee breaking.

Flood Insurance is available via the National Flood Insurance Program [NFIP] or a variety of Private Flood Insurance carriers. Most insurance agents/brokers sell Flood Insurance. Most property insurance policies [Home or Business] EXCLUDE Flood losses.

In simple terms, a sink hole occurs when underground water erodes subsurface limestone formations. This causes a ground collapse and a sink hole.

Yes, they can swallow a person, a vehicle or large building.

Sink holes can happen anywhere there is underground erosion. In Florida, the vast majority of sinkholes occur in the central and inland parts of the state where underground limestone formations are common.

Florida insurance law requires HO policies cover Catastrophe sink hole claims. This is basically when a home falls into a sink hole. Insurance coverage for minor sink hole claims, such as cracked pavement, can be purchased but is very expensive.

Sure, but you may run out of water, eh?

We suggest the following steps when securing home insurance:

1. Determine the specific property you intend to purchase.
2. Interview prospective agents to select a professional or professionals of your choice.
3. Discuss the property with your chosen agent and ask for their guidance on the underwriting information and order of the insurance process.
4. Create a basic set of criteria to be provided for your insurance.
5. Ask the agent or agents for the names of the insurance companies they wish to use.
6. Allocate insurance companies to specific agents only — one agent for each company.
7. Follow agents’ guidelines in obtaining inspections and provide complete underwriting information.
8. Request full copies of the insurance proposals from all insurance carriers.
9. Ask agents if the proposals have been approved by underwriting and are eligible to be bound.

• Follow all the steps from the insurance buying process.
• Do business with reputable and experienced agents.
• Follow the professional advice that you are given.
• Plan ahead and allow adequate time.

For discussion purposes we will refer to these activities as CRRV. Property Insurance policies generally require a property be occupied or in use for residential or business purposes. When a property is undergoing CRRV it is important to notify your insurance agent or company to assure protection during the CRRV period. Depending on the time and extent of the CRRV, special Insurance forms may be necessary. Failure to use the proper forms or disclose the CRRV conditions may result in claim denials and/or litigation.

A Professional agent/broker should ask questions about the occupancy, condition, and use of the property to be insured. In Florida, it is common for people to buy a home or apartment in the spring and then remodel, renovate, or expand the property before the next winter season. Asking detailed questions and understanding the plans for a property is part of the agent’s underwriting responsibility. These questions are not designed to sell more insurance. They are intended to properly protect you and assure a claim will be paid.

This is very common. Plans take time to finalize and then often change. Stay in communication with your agent. Make sure they know what is happening [preferably do so in writing]. A good agent can adjust to changing conditions. Problems generally occur when there is lack of communication.

Not necessarily. A Builders Risk policy may offer a lower premium than a Homeowners policy. The important thing is to have the proper insurance so a claim will be paid promptly and fully. Remember, construction activities create a variety of increased Risk Factors. Policy conditions require you to inform the insurance company of changes in risk factors.

It is very important to make certain that you understand your legal liabilities and those of your contractor. This applies to Liability, Workers Compensation, Property, and Materials. A Professional Agent can help with these items and can recommend when legal advice is needed. Your agent can also assist in verifying that your contractor and subcontractors are properly insured. Never assume that contractors have the type and amount of insurance to protect themselves or you as property owner. If a contractor isn’t properly insured you as a property owner may be the target for litigation and claim.