Florida Homeowners Face Skyrocketing Insurance Premiums
Homeowners in Florida are dealing with some of the highest home insurance premiums in the United States, according to new data from Bankrate.com. On average, Floridians pay about $5,400 annually for home insurance, making them the second-highest paid after Nebraska, a state prone to tornadoes.
To put this into perspective, homeowners in neighboring Georgia pay significantly less, around $2,000 per year. Even Californians, who live in a disaster-prone area, pay lower premiums, averaging $1,400 annually. The disparity is largely due to Florida’s exposure to hurricanes and the resulting risk for insurance companies.
Jovan Millet, a homeowner in Fort Myers who moved from Salt Lake City in 2022, has experienced the burden of rising insurance costs firsthand. “I bought my house right before Hurricane Ian, and it got decimated. It took me over two years to collect insurance money to do anything,” Millet said. Since then, his premiums have skyrocketed from an affordable rate to $4,800 per year, just shy of the statewide average for a $300,000 home.
Doug Nellans, an insurance agent with The Insurancenter in Fort Myers, explained that about 30 variables affect insurance rates. The age of the home and its location are among the most significant factors. “The closer a property is to water, the higher the premium,” Nellans noted. Cape Coral, with its 400 miles of waterways, exemplifies this issue, leading to significantly higher insurance costs.
The problem is compounded by many homes being underinsured. Insurers often require higher coverage limits to ensure adequate protection, which contributes to rising premiums. Nellans warned that rates are unlikely to drop significantly soon because reconstruction and repair costs continue to rise.
In contrast, California’s strict regulations on rate increases have kept premiums lower, even as some major insurers pull out of high-risk areas. Many Californians are turning to state-run insurance programs, similar to Florida’s Citizens Property Insurance, which recently announced modest rate decreases.
While some moderate rate reductions are being seen, Citizens continues to shift policyholders into the private market. This leaves homeowners like Millet in a difficult financial situation. “I can barely afford what I have now,” he said.
The situation highlights the challenges faced by homeowners in Florida and the need for solutions to stabilize or reduce insurance premiums.
