Florida’s Home Insurance Crisis Deepens Amid Rising Extreme Weather Events
As hurricane season intensifies in Florida, the state’s home insurance crisis continues to worsen. Homeowners are finding it increasingly difficult to maintain insurance coverage due to rising premiums and stricter inspection requirements. The crisis is particularly acute in coastal areas where the risk of damage from extreme weather events is highest.
Leah Melanie Nelms, a Florida resident, recently received a cancellation notice from her insurance company after years of coverage. An inspection revealed that her roof needed to be replaced at a cost of $19,000 to continue her insurance. Nelms was told by a roofing expert that her roof was fine, but insurance companies typically require replacement for roofs over 20 years old. This experience is not isolated; home insurance rates in Florida have surged by 72% over the past five years, according to a ValuePenguin analysis.
The situation is dire for many homeowners. Peggy Rickly, another resident, reported that after making a claim, she was told she was “doomed” and that insurers wouldn’t cover homes within three miles of the water. Some insurance companies have abandoned the state altogether, leaving customers to fend for themselves. It’s estimated that between 15% and 20% of Floridians are now uninsured.
The root cause of this crisis lies in the increasing frequency and severity of extreme weather events, exacerbated by climate change. As dirty energy sources continue to be burned, releasing gases that contribute to rising global temperatures, the damage to communities will intensify. This, in turn, prompts insurance companies to raise premiums, enforce stricter home inspections, or withdraw from high-risk areas.
The economic implications are significant. More homeowners will be forced to pay out-of-pocket for damages previously covered by insurance, making homeownership increasingly expensive. This trend could lead to a rise in unoccupied homes, straining local communities.
In response to the crisis, Florida passed legislation a few years ago aimed at attracting new insurers to the market. As of 2025, there are signs of positive developments, with 11 new insurers entering the market and rate increases slowing. However, the ongoing threat of extreme weather events continues to pose challenges for homeowners and insurers alike.
As the situation unfolds, homeowners like Nelms and Rickly remain uncertain about their future. The insurance crisis in Florida highlights the broader issue of climate change and its far-reaching consequences on the economy and individual livelihoods.
