Home Insurance vs Renter’s Insurance in Florida: Which is Cheaper?

After decades of a slowly declining population, Florida is once again growing by leaps and bounds. According to the US Census Bureau, Florida has become the fastest-growing state in the Union for the first time since 1957, rising by almost 2% between 2021 and 2022. No doubt an aging population and a growing number of retirees contributes to this upward trend.

Though a rising population is good for business, it’s not great news for aspiring Florida homeowners. The state of the housing market in Florida is dire. Rapidly rising inflation and higher mortgage interest rates have deterred some home buyers.

Not only that, but Florida homeowners insurance has become harder to get, due to the increasing number of extreme weather events. Operating costs for insurance companies have grown so high that some insurance companies are declining new contracts or pulling out of the state altogether, making it even more difficult and expensive to get home insurance coverage.

With the myriad difficulties involved in home buying and homeowner’s insurance, some residents are choosing to rent instead, assuming that it’s more cost-effective to rent than to buy. But is that actually true?

The numbers don’t lie: renting is almost universally cheaper everywhere in Florida than buying a home. In Palm Bay, a typical mortgage payment is $310 a month more expensive than rent; in a city like Orlando, it’s a whopping $903 or more per month.

But can you still buy insurance coverage for your belongings is you rent? As it turns out, you can, and there are plenty of good reasons to do so.

What Is Renter’s Insurance?

Renter’s insurance is a lot like homeowner’s insurance, but it’s designed to protect tenants and their possessions, and not the structure of the building and the surrounding land (which is the landlord’s responsibility). It’s important to note that your landlord’s insurance will not cover your belongings if they’re damaged by something like fire or flood; nor are you covered in the case of theft. Renter’s insurance is for protecting the tenant and their possessions.

While renter’s insurance is not legally required in the state of Florida, it’s likely you may end up purchasing some anyway, since landlords often include it as a requirement in the lease agreement. But even if you’re not required by your landlord to get insurance, there are some good reasons to do it anyway:

• Renters insurance ensures your property is protected against events like theft, fire, burglary, or water damage.A typical renter’s insurance policy provides cover
• If someone has an accident while in your rental unit, liability insurance will cover you against medical bills and lawsuits.
• Renter’s insurance is very affordable (see below for more details).
• Some renters insurance will cover the cost of temporary housing if you’re displaced by a natural disaster.

Another important note: just as with homeowner’s insurance almost everywhere in the United States, renter’s insurance will not cover damage from flooding or earthquakes. If you want to protect yourself against those phenomena, you’ll have to purchase additional coverage as a rider or endorsement.

Which Insurance is Cheaper?

Finally, it’s worth mentioning again that renter’s insurance is extremely affordable compared to home insurance. Per numbers from Ross Martin at insurance comparison site The Zebra, renter’s insurance in Florida is $227 a year, which is more than the national average, but still far less than homeowner’s insurance, which is nearly ten times as much. If you’re looking to save money on your insurance premiums, there’s a clear choice in front of you.

Tips for Affordable Renters Insurance

If you do decide to rent your home in Florida rather than buying, there are a few ways you can save even more on the already-low premiums. Here are a few common strategies:

• Shop around and compare quotes from multiple insurance providers using free online tools. Not every insurance company is created equal, and some will be a better fit for your needs than others.
• If you have an automobile, bundle your renters and auto insurance together for a discount.
• If you can afford to pay a little more out of pocket in case of an accident, increase your deductible so your monthly premiums are lower.
• Talk to your new (or existing) insurer about possible discounts for things like security systems, smoke detectors, being a non-smoker and other criteria. You might be surprised at how much money you could save.
• If possible, maintain a good credit score. While it’s banned in some states, in many places it’s still allowed to take credit score into account when assessing insurance risk.

The housing market in Florida is tough, and unlikely to get significantly better anytime soon. But with rent being far more reasonable and renter’s insurance extremely affordable, you may have more options than you thought.

Similar Stories