Why is homeowners insurance getting so expensive in Florida?
Asked by: Miller Kozey III | Last update: July 15, 2025Score: 4.7/5 (52 votes)
Reforms were driven by arguments that costly litigation was driving up rates. In 2023 there was a $50 billion hole in the reinsurance market in Florida. This resulted in companies raising rates and searching for the least risky properties to insure.
Why is Florida home insurance going up so much?
Rising construction costs and natural disasters are some of the reasons why Florida homeowners pay more, but lawsuits are also a factor. State lawmakers made changes to prevent this issue during two special sessions in 2022, and it looks like those legislative reforms are helping to stabilize the market.
Will Florida homeowners insurance ever go down?
Bankrate's analysis of rate data from Quadrant Information Services shows that Florida homeowners insured with $300K in dwelling coverage saw a $654 premium decrease between January 2024 and September 2024.
Why did my homeowners insurance go up so much in 2024?
Climate change, inflation and industry woes have caused premiums to soar nationwide. Homeowners insurance rates rose dramatically between 2023 and 2024, according to a Bankrate analysis of rate data from Quadrant Information Services.
What is the average cost for homeowners insurance in Florida?
How much does homeowners insurance cost in Florida? The average cost of homeowners insurance in Florida is $2,625 per year, or about $219 per month. That's 37% more than the national average of $1,915. In most U.S. states, including Florida, many insurers use your credit-based insurance score to help set rates.
Florida Home Buyers BLINDSIDED By Something Terrible Happening in Florida
What is the new insurance law in Florida in 2024?
Effective Date: July 1, 2024 with some provisions effective on May 13, 2024, the day Governor DeSantis signed the bill. Allows surplus lines insurance companies that meet certain financial requirements to take out policies from Citizens for dwellings that are not primary residences or homestead properties.
How to lower home owner insurance?
- Shop around. Insurance companies charge different rates, and your company might have raised your rates. ...
- Ask about discounts. Make sure you're getting all the discounts you qualify for. ...
- Look at your deductible. Choosing a policy with a higher deductible can lower your premium.
What state has the worst insurance rates?
Oklahoma, Kansas, Nebraska, Florida, and Colorado are the most expensive states for homeowners insurance. Oklahoma has the highest average cost of homeowners insurance in the U.S. at $5,858 per year.
What county in Florida has the cheapest homeowners insurance?
- Sumter County: Known for its lower risk of natural disasters, Sumter County offers some of the most affordable insurance rates in the state.
- Baker County: With an average annual premium of $2,919, Baker County leads with the lowest rates.
How much is homeowners insurance on a $500,000 house?
How much is homeowners insurance on a $500,000 house? A $500,000 home costs an average of $2,891 per year to insure. State Farm has the cheapest rates for $500,000 homes, at around $1,976 per year.
How to get cheaper homeowners insurance in Florida?
- Shop around. ...
- Raise your deductible. ...
- Don't confuse what you paid for your house with rebuilding costs. ...
- Buy your home and auto policies from the same insurer. ...
- Make your home more disaster resistant. ...
- Improve your home security. ...
- Seek out other discounts.
Is Progressive pulling out of Florida?
Progressive is not leaving Florida, but it is making significant adjustments to its home insurance policies in the state. The company plans to send out non-renewal notices to approximately 100,000 policyholders in December 2023. This move is part of Progressive's strategy to “rebalance its exposure” in Florida.
What is the best home insurance company in Florida?
- Best for affordability: Tower Hill.
- Best for customer satisfaction: State Farm.
- Best for discounts: Liberty Mutual.
- Best for high-value homes: Chubb.
- Best for hurricane coverage: Allstate.
Who has the cheapest homeowners insurance?
USAA and Auto-Owners are the cheapest home insurance companies on average, according to Bankrate's research.
Why is Florida becoming so expensive?
Because of inflation, the cost of living has increased across the country, and Florida is no exception. According to CNBC, Florida is ranked as the ninth most expensive state to live in for 2024.
Which home insurance company has the highest customer satisfaction in Florida?
State Farm, Chubb, and Tower Hill are among the best homeowners insurance companies in Florida, known for their customer satisfaction, comprehensive coverage options, and affordability.
Is State Farm selling homeowners insurance in Florida?
Get Insurance in Tampa, FL. State Farm® can help you insure almost anything. Whether it's car, boat, home, ATV, or motorhome insurance, we've got you covered.
What is the cheapest insurance company for Florida?
State Farm has the cheapest full coverage insurance in Florida, at $163 per month. Geico has the cheapest minimum coverage, at $39 per month. Currently insured? It's free, simple and secure.
Which states are hardest to get homeowners insurance?
Florida and California have seen a mass exodus of insurance companies, but they are not the only states insurance companies are pulling out of. Homeowners in Massachusetts, Louisiana, Colorado, Minnesota, Arkansas, Nebraska and Oklahoma may also struggle to find a policy.
Why is Florida home insurance so expensive?
Priciest Areas Overall for Home Insurance
“The states with the highest home insurance costs are prone to severe weather events,” the Insurify report explains. “Florida, Louisiana, Texas, Arkansas and Mississippi are vulnerable to hurricanes. Texas, Colorado and Nebraska face a growing wildfire risk.
What is the most expensive insurance company?
Allstate
Allstate is one of the pricier major insurers in America, averaging as the most expensive out of the ten largest insurance providers. At $168 per month, covering a vehicle through Allstate costs $41 more than choosing another large auto insurance company. Esurance is an owned subsidiary of Allstate.
What is the 80% rule in homeowners insurance?
The 80% rule describes a policy in which insurers only cover the costs of damage to your house or property if you've purchased coverage that equals at least 80% of the property's total replacement value.
How to negotiate homeowners insurance?
- Shop around for the best home insurance rates.
- Bundle your home and auto policies.
- Increase your home insurance deductible.
- Improve home security.
- Make home improvements.
- Review your coverage every year.
- Ask about savings.
- Consider actual cash value vs. replacement cost.
Is it OK to change homeowners insurance?
Yes. You have the right to switch your homeowners insurance at any time. If you're in the market for a home, you'll want to start shopping for home insurance before you purchase a house. That's because most mortgage lenders require you to buy some type of homeowners coverage before closing.