Crisis Alert: Insurer Exodus Continues

Florida Home Insurance Guide

How to find coverage in America's most expensive insurance market

🚨 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.

State-Backed

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. 1

    Apply to Citizens Property Insurance

    Florida's insurer of last resort. You must show you've been rejected by private insurers first.

  2. 2

    Work with a Florida-Specialist Broker

    Independent agents who know the Florida market can access surplus lines carriers not available directly.

  3. 3

    Consider Surplus Lines

    Lloyd's of London and other surplus carriers write policies standard insurers won't. More expensive but available.

  4. 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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