Why Is Home Insurance So Expensive in Florida? The Real Reasons.

Your premium doubled. Or tripled. You wonder if you are doing something wrong, or if this is just Florida.

The short answer: it is Florida. But there is more going on.

The Numbers

Average home insurance premium in 2024:

Florida homeowners pay 4-5x the national average. And it is still rising.

Reason 1: Hurricanes

This is the obvious reason. Florida gets more hurricanes than any other state.

But it is not just the damage itself. It is:

• Reinsurance costs — insurers insure themselves with international reinsurers, and those prices have risen
• Uncertainty — climate models predict more intense storms
• Concentration risk — many expensive homes on a small piece of coast

Reason 2: Litigation

Florida is the #1 state for insurance lawsuits. National figures:

• Florida has 8% of all US homeowners claims
• Florida has 76% of all US homeowners lawsuits

Lawyers and contractors work together to inflate claims. Assignment of Benefits (AOB) fraud cost insurers billions.

Recent legislation tries to address this, but the effects are not yet visible in premiums.

Reason 3: Insurers Are Leaving

Since 2020:

• State Farm: stopped new policies
• Allstate: stopped new policies
• Farmers: completely left
• UPC: bankrupt
• FedNat: bankrupt
• Weston: bankrupt

Less competition = higher prices for you.

Reason 4: Older Homes

Florida has many homes built before the strict building codes of 2002. Those homes:

• Have weaker roofs
• Less hurricane-resistant construction
• Higher damage risks

Insurers factor that into your premium.

Reason 5: Roof Age Obsession

Insurers in Florida are fixated on roof age. A roof of 15+ years can mean:

• Higher premium
• Limited coverage
• Non-renewal
• No quote at all

This is stricter than in other states.

Reason 6: Flood Insurance Is Extra

Standard homeowners insurance does not cover flood damage. In Florida you often need separate flood insurance.

FEMA flood insurance prices have risen due to Risk Rating 2.0. Many Miami-Dade homeowners now pay $2,000-5,000+ per year just for flood coverage.

What Can You Do About It?

Options that some homeowners explore:

• Wind mitigation inspection (may lower premium)
• Hurricane shutters or impact windows
• Replace roof
• Accept higher deductible
• Shop with other insurers

Whether this works for you depends on your specific situation, your home, and your risk tolerance.