Bundling insurance coverage is a common strategy that can help policyholders save money, streamline their coverage, and simplify their financial lives.
In a state like Florida, where insurance markets are volatile due to natural disasters and rising premiums, it’s important to understand when bundling is truly beneficial.
Why Bundling Insurance Makes Sense in Florida
Floridians are paying some of the highest homeowners insurance premiums in the country, according to the Insurance Information Institute. Bundling with auto or another policy could provide meaningful savings.
With Florida’s exposure to hurricanes and flooding, having your home and auto insurance under one roof can simplify the claims process if both types of property are damaged in the same event.
Managing multiple policies with one company means fewer bills and a single point of contact, which can reduce confusion, especially useful during stressful times like storm season.
Some insurers in Florida offer perks for long-term customers who bundle, such as diminishing deductibles, accident forgiveness, or premium waivers if you go claim-free.
When Bundling Insurance Coverage May Not Be the Best Option
While bundling can offer discounts, sometimes individual policies from different companies may still be cheaper. For example, one carrier may specialize in high-risk coastal properties and offer better rates. Another might have more competitive auto premiums.
Some providers have left Florida’s turbulent insurance market in recent years. Bundling might make you hesitant to switch providers, even if one of your policies becomes overpriced or lacks adequate coverage.
Home insurance policies in Florida rarely include flood coverage, which is essential given the state’s geography. While FEMA’s National Flood Insurance Program (NFIP) offers coverage, some private insurers do too, but it’s rarely part of a bundle.
Other Florida-Specific Considerations
Florida has a separate hurricane deductible. It is often a percentage of your home’s value, rather than a flat dollar amount. Bundling doesn’t eliminate this extra cost, so review your policy carefully.
Florida lawmakers passed legislation in 2022 to curb insurance fraud and reduce litigation tied to Assignment of Benefits (AOB) abuse (Florida Senate Bill 2-A). This legislation has had an influence on which companies offer bundled options and how claims get handled.
When considering whether to bundle policies, compare apples to apples. Don’t just look at the bundled price; compare coverages, deductibles, and policy limits; read the fine print. Ensure discounts don’t disappear after the first year. Ask about storm-related exclusions. Some bundled home policies may have exclusions for wind or flood damage.
If doing all this alone sounds daunting, use an independent insurance agent like Domain Insurance. We can shop multiple carriers for you and advise whether bundling makes sense for your situation and budget.
Our licensed local insurance agents understand the market and will guide you to the best coverage for your needs. Contact us or call (239) 610-1116 to learn more about how we can help.
