Recent reports from Zillow show a decline in property values in Vero Beach, Florida for Q3 2025, which has many homeowners wondering: “Will my insurance premium go down too?”
Unfortunately, the answer is probably not—and here’s why.
Market Value vs. Replacement Cost: What Florida Homeowners Need to Know
When it comes to home insurance, what really matters isn’t your home’s market value (what you could sell it for), but rather its replacement cost value—what it would cost to rebuild your home from the ground up in today’s labor and materials market.
Even if Vero Beach home prices are softening, construction costs remain high, driven by inflation, supply chain issues, and a shortage of skilled labor. Insurance carriers use these costs to determine how much coverage your home requires—not what Zillow or the real estate market says your house is worth.
So even if your Zillow estimate is dropping, your insurance premium is based on the cost to rebuild, which could stay the same or even increase.
Why Insurance Premiums Often Stay the Same or Increase
- Rising construction costs: Lumber, roofing, and skilled labor remain expensive across Florida.
- Storm risk: Vero Beach is a coastal community vulnerable to hurricanes and flooding. These risks are priced into your premium.
- Inflation Guard Endorsements: Many home insurance policies include clauses that automatically adjust your dwelling coverage upward each year to account for inflation.
What You Can Do to Take Control
While market values are out of your hands, your insurance policy isn’t. Now is a great time to review your coverage with a trusted local expert.
💬 Are you overinsured, underinsured, or just not sure?
👉 Contact Craig Appleman, an Independent Insurance Broker servicing Vero Beach, who specializes in:
- Homeowner’s Insurance
- Flood Insurance
- Personal Lines (Auto, Boat, Motorcycle, Umbrella, and more)
Craig works with dozens of top-rated carriers to help local residents get the right coverage at the best price—even in a changing market.
📞 Call Craig today at (772)276-7200, x 4
📧 Or email craig@barefootins.com for a free policy review and quote.
Don’t let headlines or home estimates mislead you—get real answers from a real expert.
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