Florida Homeowners: Skipping Insurance
A growing number of Floridians are choosing to go without property insurance, a trend fueled by the state’s escalating insurance costs.
David Schroeter, holding a photo of his boat, is a Florida homeowner who has opted out of insurance.
One such homeowner is David Schroeter Sr., a Melbourne resident who lost his boat to a storm years ago. He recalls the financial protection insurance provided during that loss.
However, when it comes to his house, Schroeter has chosen a different path. He’s gone without insurance for years due to increasing costs and decreasing coverage.
He’s not alone. Experts estimate that approximately 15% to 20% of Florida homeowners are now uninsured.
Schroeter’s situation mirrors that of many others in Florida. His insurance premiums rose substantially while offering less coverage. Eventually, his insurer dropped him altogether, and insurance through the state-backed Citizens also grew more unaffordable every year, leading him to forgo coverage.
This trend is largely driven by the state’s property insurance crisis, with Florida having the most expensive premiums in the nation. Data suggest that premiums average around $11,000 annually, and the cost has increased by 72% in the last five years.
Millions of people have turned to Citizens Property Insurance Corporation, the state-run insurer, due to the unwillingness of private companies to provide coverage.
The situation became worse after Hurricane Ian in 2022, which led to more insurance companies leaving the state and more homeowners seeking coverage with Citizens.
Insurance companies deny a higher percentage of claims in Florida than in any other state, pushing more homeowners to question the value of their policies.
Mark Friedlander, from the Insurance Information Institute, notes state efforts to stabilize the market through reforms and attract new insurers.
These reforms include measures to limit litigation against insurance companies and to attract new insurers to the market.
The Florida Office of Insurance Regulation says that several new private insurers began in 2024, with additional expectd in 2025, creating more options for homeowners.
While self-insuring can be appealing financially, especially for those without mortgages, it’s a risky decision. Repairs and, crucially, rebuilding a home can be expensive.
Friedlander warns that self-insuring can lead to devastating consequences, particularly if homeowners are unable to rebuild after a major event.
Schroeter acknowledges the risk but remains confident in his choice, trusting in his financial situation and personal beliefs.
