🚨 The Florida Insurance Crisis
Florida homeowners face the highest insurance costs in the nation—by a massive margin:
Florida Average
$10,996
per year
National Average
$2,400
per year
Florida Premium
+358%
above national avg.
Why Is Florida So Expensive?
🌀 Hurricane Risk
Florida faces more hurricane exposure than any other state. Major storms cause billions in claims.
⚖️ Litigation Abuse
Florida had 79% of all U.S. homeowner insurance lawsuits despite only 9% of claims. Attorney fees drive costs.
🏠Roof Claims
Contractors solicit homeowners to file roof claims, often for pre-existing damage. This fraud costs billions.
📉 Insurer Exits
Major carriers (Farmers, AAA, others) stopped writing new Florida policies. Less competition = higher prices.
Insurers Still Writing Florida Policies
Citizens Property Insurance
State-run insurer of last resort. Now Florida's largest insurer with 1.4M+ policies. Rates are capped but still expensive.
Universal Property & Casualty
Largest private Florida insurer. Still writing new policies in most areas. AM Best: A- (Excellent).
Florida Peninsula
Regional carrier focused on Florida. Competitive rates in some areas. AM Best: A- (Excellent).
State Farm (Limited)
Still writing in some areas but selective. Existing customers generally kept. AM Best: A++ (Superior).
⚠️ Warning: Many Florida insurers have become insolvent in recent years. Always check AM Best ratings and NAIC complaint data before buying.
How to Lower Florida Home Insurance Costs
🏠Roof Upgrades (Biggest Savings)
Impact-resistant roof can save 25-35%. Hip roof design saves additional 5-10%. New roof (under 10 years) is often required for coverage.
🌀 Hurricane Mitigation
Storm shutters, reinforced garage doors, and roof-to-wall connections qualify for discounts. Get a wind mitigation inspection.
đź’° Higher Hurricane Deductible
Choosing 5% or 10% hurricane deductible (vs. 2%) significantly lowers premiums—but means more out-of-pocket after a storm.
📦 Bundle with Auto
Even in Florida's crisis market, bundling saves 10-20%.
What If You Can't Get Coverage?
-
1
Apply to Citizens Property Insurance
Florida's insurer of last resort. You must show you've been rejected by private insurers first.
-
2
Work with a Florida-Specialist Broker
Independent agents who know the Florida market can access surplus lines carriers not available directly.
-
3
Consider Surplus Lines
Lloyd's of London and other surplus carriers write policies standard insurers won't. More expensive but available.
-
4
Fix Your Roof
Roofs over 15 years old are often uninsurable. A new roof may be required to get any coverage.
Florida Insurance FAQs
Is flood insurance included in my homeowners policy?
No. Flood damage is NEVER covered by standard homeowners insurance. In Florida, flood insurance is essential—purchase through NFIP or a private flood carrier separately.
What is a hurricane deductible?
Unlike your regular deductible (flat dollar amount), hurricane deductibles are typically 2-10% of your dwelling coverage. On a $400K home with 5% hurricane deductible, you'd pay $20,000 out-of-pocket before insurance kicks in for hurricane damage.
Will rates ever go down?
Florida passed reforms in 2022-2023 to address litigation abuse and roof claim fraud. Experts predict it may take 2-3 years before these reforms stabilize the market. Rates may plateau but significant decreases are unlikely.
The Bottom Line
Florida home insurance is in crisis, with rates averaging $10,996/year—4x the national average. Your best strategies: upgrade your roof (biggest savings), get a wind mitigation inspection, and work with a Florida-specialist broker who knows which carriers are still writing. If private insurance fails, Citizens Property Insurance is your backup.
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