Florida insurers launch new program for affordable homeowner coverage

Security First Insurance and Embark MGA have launched a new insurance program aimed at homeowners in Florida. This initiative, introduced in late December, is specifically for buyers of newly constructed homes. The program offers enhanced coverage options tailored to the unique needs of Florida homeowners.

"This innovative homeowners’ insurance solution combines enhanced coverage options tailored to the unique needs of Florida homeowners with the simplicity of embedding the insurance in the home-buying process," Security First stated.

The new product aims to integrate insurance into the home-buying process, addressing a significant barrier cited by many prospective homebuyers in Florida. "Recent surveys reveal that many prospective home buyers in Florida cite insurance as a major barrier to purchasing a home," Security First added.

According to data from the U.S. Census Bureau, 20% of Florida homeowners were paying at least $4,000 annually for home insurance, which is significantly higher than the national average cost of about $2,300 for similar coverage limits.

Frequent storms have led to increased insurance costs in Florida. For instance, Hurricane Helene last year resulted in 200 fatalities and up to $48 billion in property damage. This has caused some insurers to raise premiums or cease issuing new policies altogether.

Over 30 home insurance companies have exited the state, creating what Bankrate describes as an "insurance desert." Without adequate insurance options, obtaining a mortgage becomes nearly impossible for many residents.

Citizens Property Insurance Corp., backed by the state, has been one of the few remaining options for homeowners. However, it announced plans to increase rates by 14% in 2025.

The partnership between Security First and Embark MGA introduces more choices for Floridians seeking suitable insurance policies. They will offer an HO5 policy providing broad protection for new-home buyers and streamlined claims processing.

An HO5 policy covers both the house and personal belongings while including incidents typically excluded from standard policies. According to Security First, this system will integrate quotes into mortgage qualification processes using preloaded builders' inventory and community details.

This approach aims to reduce delays and remove common obstacles faced by potential homebuyers.