{"id":551,"date":"2012-08-08T18:31:57","date_gmt":"2012-08-08T22:31:57","guid":{"rendered":"https:\/\/rtcinsurance.wordpress.com\/?p=551"},"modified":"2026-05-16T21:58:22","modified_gmt":"2026-05-17T01:58:22","slug":"florida-home-insurance-quote-how-rates-are-derived","status":"publish","type":"post","link":"https:\/\/rtcinsuranceadvisors.com\/blog\/florida-home-insurance-quote-how-rates-are-derived\/","title":{"rendered":"Florida Home Insurance Quote – How Rates Are Derived"},"content":{"rendered":"

Did you ever wonder how the carriers come up with pricing for Florida home insurance<\/strong>?\u00a0 I did.\u00a0 When you are in the market for a Florida Home Insurance quote<\/strong><\/a> , you may be interested to learn how they come up with these varied premiums.\u00a0 I will give you the basics of what I know about this topic here.<\/p>\n

Premiums for regular\u00a0FL<\/strong> homeowners insurance <\/strong>or HO-3 (Special Form) is based on 3 factors of rating:\u00a0 the fire protection available, the construction of the house, and the location.<\/p>\n

The fire protection means the distance from a water source.\u00a0 This is known as the protection class or PC.\u00a0 Generally speaking, homes that are within 1000 feet of a fire hydrant and within 5 miles of a fire station receive a lower rate than a home that has no fire hydrant nearby.\u00a0 Sometimes, you can\u2019t find any carriers in your area to insure your home if there is no hydrant and a fire station is outside 5 miles.\u00a0 If there is no hydrant, but a fire department within 5 miles, then you have more options, but pay a higher premium.<\/p>\n

How Your Home is Built Affects Your Florida Home Insurance Quote<\/h2>\n

Secondly, the construction of the house is important.\u00a0 Homes that are built with masonry or concrete block receive a lower rate than homes built with wood.\u00a0 The reason block is less expensive\u2026Yes, you guessed it.\u00a0 Masonry is fire-retardant and will keep the cost of rebuilding your home down in the event of a loss.\u00a0 Even though the rates per thousand is less for masonry, the replacement limit or amount of insurance required to insure your home is lower for wood frame.\u00a0 It just costs more to buy concrete.\u00a0 But, usually, the rates are still more expensive for a wood frame construction.<\/p>\n

Finally, we need to consider location.\u00a0 Carriers rate differently from area to area.\u00a0 Some areas have more crime, other areas have and increased chance of storm activity that can wipe out many homes in one shot.\u00a0 Truth be told, there are quite a few sub-elements in this section, but I want to just keep it brief for this post.<\/p>\n

A \u201ckey premium\u201d is established and multiplied by a \u201ckey factor\u201d based on the limit of the house, or the amount of insurance on the home to produce the homeowners base premium.\u00a0 The key premium and factor takes into consideration the above mentioned elements; the fire protection available, the construction of the house, and the location.<\/p>\n

Luckily, we don\u2019t have to calculate all these factors with pencil and paper when you request a Florida Home Insurance<\/strong>.\u00a0 Let\u2019s let the computer do all the work.\u00a0 RTC Insurance Advisors has access to the top\u00a037 Florida home insurance<\/strong><\/a> companies and would like to run a new rate for you.\u00a0 Perhaps you are overpaying for your premium.\u00a0 Why not give us a call at 352-200-2066<\/strong> today to find out?\u00a0 Or, fill out the form below for your quote.\u00a0 Thanks and we look forward to being your agent.<\/p>\n