Florida Homeowners Brace for a Storm of Rising Insurance Costs

Florida homeowners are facing a steep climb in home insurance premiums, reigniting concerns about affordability and market stability. With average annual costs skyrocketing — in some cases reportedly nearing $11,000 — many residents are now struggling to keep up.

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Several interlocking factors are behind the surge. First, inflation and construction-cost increases have made it far more expensive to rebuild homes after storm damage. Building materials such as lumber, concrete, and steel have risen in price, while labor shortages have compounded the effect.

Second, Florida’s exposure to increasingly severe hurricanes and storm events has increased insurers’ risk. Reinsurance — the insurance that insurers purchase to protect themselves — has also become significantly more expensive.

Third, the legal landscape in Florida is driving up costs. The state sees a disproportionately high number of insurance-related lawsuits, with some estimates claiming Florida accounts for 79% of such litigation nationally despite a much smaller share of total claims.  Assignment-of-benefits (AOB) abuse, where contractors or lawyers take over claims and then sue insurers, continues to burden companies and, in turn, homeowners.

Market instability is also contributing: several insurers have reduced their presence in Florida after years of costly losses, leaving fewer competitors and less downward pressure on prices.

The combined effect is not only pushing up premiums but threatening the broader housing market. According to analysts, higher insurance costs are making homes less affordable, and in some communities, damage from extreme weather could depress property values.

In response, the state has revived programs to help homeowners harden their properties. For example, Florida reinstated its My Safe Florida Home program with more than $280 million in funding for wind-mitigation upgrades.  By installing impact-resistant windows, reinforcing roofs, and making other improvements, homeowners may reduce their insurance burden.

But for many, those fixes may come too late — or be out of reach. And as rates continue to climb, the pressure on Florida’s housing market shows no sign of letting up.

Updated 2025 Data

• According to the Census Bureau, Florida’s median annual property insurance cost for mortgaged homes was $2,273 in 2023 — the highest in the U.S. — while households without a mortgage paid a median of $1,442.
• A July 2025 report noted that the projected average homeowners policy cost in Florida could hit $15,460 in 2025 — nearly five times the national average.
• As of October 2025, average home-insurance premiums in Florida increased by about 1.5 % for the first eight months of the year — a modest rise compared to earlier years.
• In late 2025, the state-run insurer Citizens Property Insurance Corporation filed for rate increases of ~10.4 % for multi-peril policies and ~17.2 % for wind-only policies.
• The market remains under pressure: private insurers citing high reinsurance and litigation costs continue to raise rates.

Take-away: Although the rate of increase has slowed in some segments, Florida continues to have among the highest homeowners-insurance costs and is subject to significant volatility due to storms, legal risk, and insurer withdrawal.

County-Level / Local Impacts

• Rate differences across Florida counties are dramatic. An article by Worth Insurance breaks down 2025 expectations by county, showing premium variation from very high in coastal/Keys counties (e.g., Monroe County, Florida) to more moderate in inland counties (e.g., Baker County, Florida).
• A June 2025 investigation by Inside Climate News found that while many expect coastal counties to suffer the most from storms, poor inland counties are experiencing an even bleaker market: fewer insurers, higher rates, and in some cases no coverage options.
• For example: homes in metropolitan areas such as Miami‑Dade County, Florida, with high risk and high values, may face rates far above the state median; whereas more rural counties may still have somewhat lower rates, but also fewer insurer choices and increased risk of non-renewal. (Refer to the Worth Insurance breakdown.)
• The effect on the housing market: With insurance costs mounting and coverage more difficult to obtain, some regions are showing slower home‐sales growth and increased hesitancy among buyers — notably in markets like Orlando, Florida and Tampa, Florida.

Sources:

• CMS Law Group
• Worth Insurance
• WJCT News 89.9
• Insurance Business America
• Soma
• This Old House
• ServicePlus
• portstlucietalks.com
• opb
• Kiplinger
• WLRN
• Inside Climate News
• stormsmart
• Business Insider
• Herald Tribune
• Insurance News Net
• cfpublic
• Census.gov