If you're buying a home in Hollywood, Florida, you've probably already fallen in love with the beach lifestyle. What you might not love? The insurance bills that come with it. Between hurricane deductibles, flood requirements, and coastal wind coverage, insuring a Hollywood home is more complex—and more expensive—than almost anywhere else in the country.
Here's the reality: Hollywood sits in Broward County, one of the most expensive insurance markets in the nation. Your location between the Atlantic Ocean and the Everglades puts you squarely in hurricane territory, and insurers know it. But understanding exactly what you're paying for—and how to reduce those costs—can save you thousands of dollars per year.
What Home Insurance Actually Costs in Hollywood
Let's talk numbers. The average Hollywood homeowner pays between $3,800 and $4,500 annually for home insurance. That's already higher than the national average of around $1,700. But if your property is on or near the beach, expect those numbers to climb significantly. Properties in coastal areas of South Florida—including Hollywood, Fort Lauderdale, and Miami—regularly see annual premiums exceeding $7,000.
The good news? After years of double-digit rate increases, 2024 saw just a 1% premium increase statewide—the smallest jump since 2019. Legislative reforms are starting to work, and the relatively calm 2024 hurricane season means rates aren't expected to skyrocket in 2025. It's still expensive, but the trend is moving in the right direction.
Your exact premium depends on several factors: your home's age, construction type, distance from the coast, coverage limits, and whether you've made wind mitigation improvements. A 1960s concrete block home three miles inland will cost dramatically less than a 2020 frame house right on the beach—even if they're the same square footage.
Understanding Hurricane Deductibles and Wind Coverage
Here's where coastal insurance gets tricky. Unlike your standard homeowners deductible (usually $500 to $2,500), Florida law requires insurers to offer hurricane deductibles as a percentage of your dwelling coverage—typically 2%, 5%, or 10%. That means if your home is insured for $400,000 and you have a 2% hurricane deductible, you'll pay the first $8,000 of hurricane damage out of pocket. With a 5% deductible, that jumps to $20,000.
The hurricane deductible only applies when the National Hurricane Center issues a hurricane warning for your area. Once triggered, it stays in effect from the first warning through 72 hours after the last warning. If you get hit by wind damage outside that window—say, from a tropical storm that doesn't reach hurricane strength—your regular deductible applies instead.
If your home is within 1,500 feet of the ocean or Intracoastal Waterway, you're in what's called a wind pool area. Many standard homeowners policies exclude windstorm coverage for these properties entirely. You'll need to purchase separate wind coverage, often through Citizens Property Insurance Corporation or a specialty coastal carrier. This isn't optional—your mortgage lender will require it.
Why You Need Flood Insurance (Even If You're Not on the Beach)
People assume flood insurance is just for beachfront properties. That's a costly mistake in Hollywood. When FEMA released new flood maps in July 2024, over 11,000 Hollywood properties were newly classified as Special Flood Hazard Areas. These aren't just homes near the ocean—they include inland properties affected by Hollywood's low elevation and proximity to the Everglades.
Your homeowners insurance doesn't cover flood damage. Period. If hurricane storm surge or heavy rain floods your home, you're on your own unless you have a separate flood policy. If you have a federally backed mortgage in a high-risk flood zone, your lender will require flood insurance—it's not negotiable.
The silver lining: Hollywood participates in FEMA's Community Rating System as a Class 6 community, which means residents get a 20% discount on National Flood Insurance Program policies. Typical NFIP policies cost between $700 and $2,000 annually depending on your flood zone, so that discount can save you $140 to $400 per year. Private flood insurance is also an option and sometimes offers better coverage or pricing, especially for higher-value homes.
One critical detail: flood insurance has a 30-day waiting period before coverage kicks in. You can't wait until a storm is approaching to buy a policy. If you're closing on a home, start the flood insurance application immediately—don't wait until the last minute.
How Wind Mitigation Can Cut Your Premium in Half
Wind mitigation is your best weapon against high insurance costs in Hollywood. Florida law requires insurers to offer discounts for homes with wind-resistant features, and these savings can be substantial. Homeowners report premium reductions of 10% to 45% after installing impact windows, with some seeing discounts up to 62% when combining multiple mitigation features.
Key mitigation features include: impact-resistant windows and doors, hurricane shutters, roof-to-wall attachments (like hurricane straps or clips), sealed roof deck, and hip roof design. If your home was built after 1994 in Broward County, it likely already has many of these features thanks to updated building codes. But you'll need a wind mitigation inspection to prove it to your insurer.
The inspection costs about $100 and is valid for five years. A licensed inspector will evaluate your home's wind-resistant features and provide a form that you submit to your insurance company. The discounts are mandatory—if your home qualifies, your insurer must apply them. For a homeowner paying $5,000 annually, a 30% wind mitigation discount saves $1,500 per year. That $100 inspection pays for itself in less than a month.
If your home doesn't have these features, consider the upgrades. Yes, installing impact windows on a 2,000-square-foot home might cost $20,000 to $40,000. But between insurance savings, increased home value, energy efficiency, and actual storm protection, they usually pencil out—especially if you're planning to stay in the home long-term.
Getting the Right Coverage Without Overpaying
Shopping for home insurance in Hollywood requires more homework than in other parts of the country. Start by getting quotes from at least three insurers—rates vary wildly. Don't just compare premiums; look at coverage limits, deductibles, and exclusions. The cheapest policy might exclude wind damage or have a 10% hurricane deductible that would devastate you financially after a major storm.
Make sure your dwelling coverage matches your home's replacement cost, not its market value. In a hot real estate market, you might buy a $600,000 home that would only cost $350,000 to rebuild. Insure it for $350,000, not $600,000—the land doesn't need insurance. Your agent can help you determine the right number.
Finally, bundle when you can. Many insurers offer significant discounts if you combine your home and auto insurance. Just make sure you're actually saving money—sometimes separate policies from different companies still come out cheaper. And review your coverage annually. As Hollywood's insurance market stabilizes, shopping around each year might uncover better rates than simply renewing with your current carrier.
Yes, insuring a home in Hollywood costs more than in most of America. But with the right coverage, smart mitigation, and informed shopping, you can protect your investment without breaking the bank. The key is understanding what you're paying for and taking advantage of every discount available. Your Hollywood home is worth it.
