4 Ways Florida Homeowners Are Struggling Mightily With Insurance

Homeowners insurance costs are surging across the country, but perhaps nobody is feeling the impact as much as Florida residents.

Nearly three-quarters of Florida homeowners — 70.3% — say either they or other folks in the area they live in have felt the impact of rising home insurance costs, according to a Redfin survey of nearly 3,000 homeowners and renters.

So, just how are Sunshine State homeowners feeling the pain? In the following ways.

Their policy premiums increased

Florida homeowners who experienced this: 76%

Florida homeowners worried about this: 27%

Nationwide, homeowners insurance policy premiums leapt an average of 21% at renewal between May 2022 and May 2023, according to the online insurance marketplace Policygenius.

Florida was hit especially hard, with a 35% price shock, as we reported in “10 States Seeing the Biggest Spikes in Homeowners Insurance Costs.”

They lost coverage

Florida homeowners who experienced this: 12%

Florida homeowners worried about this: 28%

About the only thing worse than receiving a rate hike is having your coverage dropped altogether.

Florida residents who cannot get insurance through the private market can purchase a policy through Citizens Property Insurance Corp. However, this coverage is typically more expensive than a homeowners policy purchased in the private market, and it might not be as robust.

The insurer skipped town

Florida homeowners who experienced this: 10%

Recently, several insurance companies have pulled out of the Florida market and no longer sell homeowners insurance there.

Many media reports have attributed such withdrawals to the growing threat of climate change and recent damaging hurricanes. Redfin also cites these factors as reasons why insurers are skipping town in Florida.

However, the Insurance Information Institute says extreme fraud and excessive litigation are the main factors behind both insurance price increases in the Sunshine State and a reduced willingness on the part of insurers to write policies there.

They were forced to back out of a home purchase

Florida homeowners who experienced this: 1%

Imagine finding the home of your dreams, but having to back out because you cannot find suitable homeowners insurance coverage. For a small share of Florida homebuyers, that nightmare has turned into reality.