Florida’s Home Insurance Crisis: What’s Happening and Why It Matters

If you own a home in Florida, chances are you’ve felt the sting of rising insurance premiums—or worse, you’ve received a cancellation or non-renewal notice from your insurance company. Over the past several years, Florida’s homeowners’ insurance market has been in turmoil. Rates have skyrocketed, major insurers have pulled out of the state, and thousands of residents are left scrambling for coverage.

But what exactly is going on? Why are things so different in Florida compared to the rest of the country? And, most importantly, what can you do to protect your home, your family, and your financial future?

This blog will unpack Florida’s home insurance crisis in plain language. We’ll break down the causes, the impact on homeowners, and the steps you can take to stay protected in one of the most challenging insurance markets in the nation.

---

The Perfect Storm: Why Florida’s Insurance Market Is in Crisis

Florida is no stranger to storms—both literal and financial. The state has always carried higher insurance costs because of its location and weather risks. But in recent years, a “perfect storm” of factors has collided to create today’s crisis.

Catastrophic Hurricane Losses

Florida experiences more hurricanes than any other U.S. state. From Hurricane Andrew in 1992 to more recent storms like Ian, Michael, and Irma, catastrophic weather events have caused billions of dollars in damages. Insurers must pay out massive claims after each storm, and that risk gets priced into every Florida policy.

Rampant Litigation and Fraud

For years, Florida has led the nation in insurance-related lawsuits. While only around 9% of U.S. homeowner claims come from Florida, the state historically accounted for nearly 80% of the lawsuits. Many involved contractors and attorneys exploiting loopholes such as assignment of benefits (AOB). This flood of litigation drove up insurers’ legal costs and, ultimately, everyone’s premiums.

Insurer Insolvencies and Market Withdrawals

The financial strain has forced several insurance companies into insolvency. Others—like Farmers and Progressive—have scaled back or stopped writing new policies in Florida altogether. That means fewer options for homeowners, less competition, and even higher costs.

Reinsurance Costs

Reinsurance is insurance for insurance companies, and Florida carriers rely heavily on it to stay solvent. But as hurricane seasons grow more destructive, the cost of reinsurance has skyrocketed. Insurers pass that cost down to policyholders, further inflating premiums.

---

The Impact on Florida Homeowners

So what does this mean for the average homeowner? Unfortunately, the impact has been severe.

Skyrocketing Premiums

Florida homeowners now pay the highest insurance rates in the country. In 2024, the average premium was around $8,770 per year, which is more than three times the national average. For many families, that’s a mortgage-sized payment just to insure their home.

Limited Coverage Options

With many major insurers leaving the state, homeowners have fewer carriers to choose from. Some find themselves forced to turn to Citizens Property Insurance Corporation, the state-backed “insurer of last resort.” Citizens provides a safety net, but its policies may be more restrictive, and its rapid growth poses risks for the entire market if a major storm strikes.

Dropped or Non-Renewed Policies

Tens of thousands of Floridians have opened their mail to find a dreaded non-renewal notice. Even those with long histories of loyalty to a company are being dropped because their homes are deemed too risky—sometimes simply due to roof age or location.

Increased Financial Stress

Many homeowners are making tough financial decisions. Some are dipping into savings to cover premiums, while others are taking the dangerous step of dropping coverage altogether. But in a state as vulnerable as Florida, going uninsured is a gamble that can devastate a family after just one storm.

---

Signs of Hope: Recent Reforms and Market Shifts

While the challenges are real, there are also reasons to be cautiously optimistic. State lawmakers and industry leaders have taken steps to stabilize the market.

Legislative Reforms

In 2022 and 2023, Florida passed reforms aimed at curbing lawsuits and cracking down on fraudulent practices. These included limits on assignment of benefits and stricter guidelines for attorneys’ fees in insurance disputes. The hope is that reducing litigation will lower costs over time.

New Market Entrants

Despite the volatility, some new insurers are entering the Florida market. Companies like Orion180 and Mainsail have started writing policies, and others are testing the waters. More competition could eventually help moderate premiums.

Citizens Rate Adjustments

In an encouraging sign, Citizens Insurance actually reduced rates slightly in 2024, the first decrease in years. While modest, it shows that reforms and increased competition may slowly be having an effect.

---

What You Can Do as a Florida Homeowner

You can’t control hurricanes, reinsurance markets, or litigation, but you can take proactive steps to protect yourself and manage costs.

Shop Around and Work with an Independent Agent

In a volatile market, shopping around is critical. Independent agencies like Florida Risk Partners can compare multiple carriers and help you find the best available option for your needs and budget.

Consider Flood Insurance

Remember that a standard homeowners policy does not cover flood damage. With Florida’s geography and heavy rainstorms, flood insurance is an essential add-on for most properties.

Harden Your Home

Invest in wind mitigation measures like hurricane shutters, reinforced garage doors, and roof straps. Not only do these protect your property, but they can also qualify you for significant discounts on your premiums.

Review Your Coverage Regularly

Don’t assume your policy covers everything you need. Review your coverage limits, deductibles, and exclusions annually, especially before hurricane season.

Maintain a Home Inventory

Documenting your possessions with photos or a written inventory makes the claims process smoother and ensures you don’t forget valuable items after a loss.

---

Why Staying Insured Matters—Even When It Hurts

With premiums so high, some Floridians are tempted to go without insurance altogether. But this is one of the riskiest decisions you can make.

A single hurricane can cause hundreds of thousands of dollars in damage to a home. Without insurance, you would be left to rebuild on your own. For most families, that’s financially impossible. Even more moderate losses—like a kitchen fire or water damage from a burst pipe—can wipe out years of savings.

Insurance is more than just a monthly bill; it’s a shield for your family’s financial stability. Staying covered, even when it stings, ensures that when disaster strikes, you won’t face it alone.

---

How Florida Risk Partners Can Help

At Florida Risk Partners, we understand how overwhelming the current insurance environment feels. We live here too, and we know the frustrations firsthand. That’s why we’ve built a platform that makes it simple for Florida homeowners, renters, and landlords to request quotes 24/7/365.

Our team specializes in navigating this tough market. We’ll shop carriers on your behalf, look for every available discount, and make sure you’re not just getting insurance—you’re getting the right protection.

---

Final Thoughts

Florida’s homeowners’ insurance crisis is real, but it doesn’t have to leave you helpless. By understanding the causes, staying proactive, and working with a knowledgeable advisor, you can protect your most valuable asset—your home.

Yes, premiums are high. Yes, the market is messy. But your home and your family’s security are worth safeguarding. Don’t wait until the next storm is on the radar. Take control of your insurance today, and know that you’re prepared for whatever tomorrow brings.

---

Call to Action: Ready to protect your home in Florida’s challenging insurance market? Contact Florida Risk Partners today for a free policy review and quote.