What happened

Insurance premiums in Florida are double or even triple what they used to be, according to a recent USA Today article. In addition to charging considerably higher premiums, some providers have ended people’s coverage altogether. Other policyholders are being asked to make significant renovations, such as buying new roofs. “Florida’s homeowners’ insurance market finds itself in peril,” said the Insurance Information Institute.

So what

Florida has borne the brunt of several significant storms in the past decade, including hurricanes that caused wind damage and flooding. There are also accusations of high levels of fraud. These factors have led some insurers to scale back operations in the state. Others have gone bankrupt.

USA Today spoke to homeowners who have already dipped into their retirement savings, drastically cut costs, and borrowed money to cover their insurance payments. Some Florida residents are considering moving elsewhere, and others have opted to go without property insurance altogether.

Now what

The challenge for Floridians is that there’s only so much they can do. The Insurance Information Institute says there’s a lot that needs to happen at a state level to tackle insurance fraud and mitigate the impact of extreme weather events.

Even so, there are steps you can take to minimize insurance costs, whatever state you live in:

• Compare rates: It can be time consuming to shop around for the best rates, but it is a good way to make your premiums more affordable. Get quotes from several top homeowners insurance companies to find the best deal for your situation.
• Weather-proof your home: If you’re able to upgrade your roof, windows, storm shutters, or doors, your home will be less vulnerable to storms and hurricanes. Other improvements such as security systems, smoke detectors, and carbon monoxide monitors can also make a difference. Inform your insurer of any improvements as soon as you make them.
• Look for discounts: There are a number of discounts available on home insurance. For example, you might be able to swing a lower fee if you bundle your home and auto insurance or have a homeowners association.
• Increase your deductible: If you have a decent emergency fund and are able to cover a decent chunk of repairs without filing a claim, consider a higher deductible. This would mean you’d have to pay more out of pocket if your house gets damaged, but you’d also pay lower premiums year round.

Hurricane season is fast approaching, making it a good time to storm proof your home and finances. Stock up on food and drinkable water and make a plan with your family on what you might do in an emergency. In terms of your insurance, make sure you understand what your policy does and does not cover, and consider taking extra flood insurance if you are able.