Florida Homeowners Get New ‘Affordable’ Insurance Options—but There’s a Catch

A pair of Florida-based insurance providers have teamed up to create a new “affordable” insurance program aimed at homeowners in the hurricane-prone state, but there’s a catch: It is limited only to buyers of newly built homes.

Security First Insurance and Embark MGA unveiled in late December the new insurance product, which boasts enhanced coverage options “tailored to the unique needs of homeowners,” according to a press release from the carriers.

“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 says.

The idea is that the insurance options will be baked into the process of buying new-construction homes in a bid to make it easier for prospective homeowners to find coverage for their property—something that has become increasingly difficult in the Sunshine State in recent years amid surging climate risks.

“Recent surveys reveal that many prospective home buyers in Florida cite insurance as a major barrier to purchasing a home,” Security First says.

Data released by the U.S. Census Bureau in September revealed that 20% of Florida homeowners were paying at least $4,000 per year for home insurance—the highest share of any state.

By comparison, the average cost of home insurance for a policy with a $300,000 coverage limit was about $2,300 nationwide, according to Bankrate.

Increasingly devastating and frequent storms, including Hurricane Helene last year, which killed 200 people and caused up to $48 billion in property damage, have prompted some private insurers to hike premiums in Florida, or to stop writing new policies in the state altogether.

More than 30 home insurance companies have pulled out of the state, according to Bankrate, effectively rendering Florida an “insurance desert.” And without insurance, it is virtually impossible to get a mortgage.

Many homeowners were left with few coverage options beyond the state-backed Citizens Property Insurance Corp., where the average annual premium hovered just north of $3,500 in 2024.

In August, Citizen signaled its intention to hike insurance rates 14% in 2025, meaning that the average home insurance cost would jump to more than $4,000 per year, reported WESH.com.

But with Security First and Embark MGA’s new partnership, Floridians will have more options when it comes to finding an insurance policy that fits their needs.

The two carriers will be offering an H05 policy, which promises the broadest possible scope of protection for new-home buyers, along with streamlined claims processing.

What distinguishes an HO5 policy from standard HO3 policies is that it covers not only the house itself but also the policyholder’s personal belongings. Plus, it provides coverage for incidents that are often excluded from traditional policies, according to the carriers.

Here’s how it’s going to work, according to Security First: Insurance quotes will be integrated into the mortgage qualification process. The system will preload builders’ home inventory, community details, and model data, “enabling accurate, bindable quotes without the need for lengthy applications,” the company says.

The process is designed to reduce delays and eliminate some of the hurdles typically faced by homebuyers.