Florida entered a home insurance crisis in the early 2020s as climate risk, claims lawsuits, and construction costs all climbed. As of 2026 the crisis is ongoing, with Florida homeowners paying some of the highest premiums in the U.S. and many struggling to find coverage in their area. Legislative reforms have produced some relief for insurers working to maintain profitability, but affordability and availability remain active concerns for homeowners across the state.
What’s driving Florida’s home insurance crisis?
Climate change is a primary driver behind Florida’s home insurance crisis, driving up both the severity and frequency of home insurance claims in recent years. Since Hurricane Irma made landfall in 2017, causing an estimated $50 billion in damage, Florida has seen five major hurricanes. Hurricane Milton alone caused $34.3 billion in damage in 2024, almost all of it in Florida — and Hurricane Helene struck the Big Bend weeks earlier as part of a $78.7 billion U.S. disaster.
From 2017 to 2024, Florida saw 46 climate events totaling $1 billion or more in damage. By comparison, the previous 10 years (2007 to 2016) saw just 12 such events. The cost of climate disasters has been compounded by inflation, as the price of residential construction materials shot up in response to pandemic shortages, global trade challenges, and recent tariffs. It now costs more than ever to repair homes in Florida, and insurance companies’ budgets cannot sustain the growing cost while maintaining profitability.
Homes along the coast and in other high-risk zones cost the most to insure. Insurance companies charge increasingly steep rates there — often more than homeowners can afford. At the same time, insurance companies have to buy coverage of their own. Reinsurance is essentially a backstop that helps insurers pay claims after a major disaster, and its price climbed sharply in the early 2020s. Those costs reached homeowners as higher policy prices (called premiums in the industry).
Finally, insurance companies in Florida have historically grappled with widespread fraud and aggressive litigation, particularly in the form of assignment-of-benefit schemes and roof replacement lawsuits. Prior to 2022, contractors could entice homeowners into signing an assignment-of-benefits form that transferred their right to file claims with their insurance company directly to the contractor, who would then engage in a drawn-out lawsuit to extract as much payment from the insurer as possible. Legislative reforms cracked down on this practice in 2022 to provide financial relief for insurers.
How much are Florida homeowners paying for insurance?
The average cost of home insurance in Florida is $2,002 per year, or $167 per month, for a Kin policy with $350,000 in dwelling coverage. However, homeowners in high-risk coastal areas may pay significantly higher premiums, particularly for more valuable homes.
Location and coverage choices have an outsized impact on home insurance costs in Florida, where insurers are rapidly rewriting pricing algorithms in order to capture more sustainable business. If your home is located in a coastal region that’s been impacted by one or more tropical storms in recent years, you’re more likely to see higher premiums. High cost of living areas and expensive home construction can also drive up the price of coverage, as your policy needs to cover the full realistic cost to repair your property.
|
Region |
Relative cost |
Primary risk factors |
|
Central Florida (Orlando) |
Most affordable |
Sinkholes, hurricanes, thunderstorms |
|
North Florida (Inland) |
Moderate |
Severe thunderstorms, wind |
|
South Florida (Inland) |
High |
Hurricanes, wind, thunderstorms |
|
Gulf Coast |
High |
Hurricanes, storm surge |
|
South Florida (Coastal) |
Highest |
Hurricanes, storm surge |
Why are insurance companies leaving Florida?
In recent years, some home insurance companies have stopped selling policies in Florida because they were losing money. Claims costs rose faster than insurers could keep up with, and some couldn't adapt fast enough to stay.
For homeowners, this has led to a sharp increase in nonrenewal and cancellation notices and fewer choices for those seeking new providers. Some carriers who have stayed active in Florida have reduced business or raised costs in high-risk areas, leaving few options to those already living on the coast.
What is Citizens Property Insurance, and why does it matter?
Citizens Property Insurance Corporation is Florida’s state-backed insurer of last resort, offering home insurance coverage, including wind-only policies, to homeowners unable to obtain affordable home insurance through the voluntary market. In the midst of Florida’s home insurance crisis, Citizens’ policy count hit an all-time high of 1.41 million in October 2023. It is down to around 293,000 as of mid-2026.
As Citizens' policy count fell, so did its exposure to a costly mechanism built into Florida law. If a major storm ever created a deficit Citizens couldn't cover on its own, state law allows Citizens to recover the shortfall through assessments charged not just to its own policyholders, but to property insurance policyholders statewide. Citizens reports it now holds a $5.34 billion surplus and roughly $9.6 billion in total claims-paying capacity for the 2026 hurricane season, which reduces — though doesn't eliminate — the odds that mechanism gets triggered.
Is Florida’s insurance market improving?
Florida’s insurance market shows mixed signs of stabilization coupled with indicators of ongoing crisis as of mid-2026. While legislative reforms enacted in 2022 have curbed litigation and assignment-of-benefit abuses, overall costs for homeowners remain high.
In May 2026, credit rating agency AM Best reported an underwriting profit of nearly $1 billion for Florida’s personal property insurance sector. Just two years earlier, the same sector reported an underwriting loss of $132 million. AM Best calls Florida’s recent legislative insurance reforms “a positive development,” and industry leaders echo this optimism.
But these positive indicators don't tell the whole story. A Consumer Federation of America analysis of Census data found that roughly one in 10 Florida homeowners has no insurance at all — the ninth-highest rate in the country, and above the national average of 7.4%.
Those homeowners who do have home insurance in Florida are not all feeling the relief expressed by insurance executives. With some homeowners still seeing premiums well above the national average, comparing quotes to find the best price is more important than ever.
How Florida homeowners can manage rising insurance costs
Shopping around is a key strategy for Florida homeowners seeking to manage rising insurance costs as the home insurance crisis plays out around them. Comparing quotes from multiple insurers can identify the best match between homeowner needs and insurer pricing strategies.
Other ways to potentially save on coverage include:
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Home upgrades: Strengthening your home against key climate threats, including wind, can reduce the cost of home insurance. Many insurers offer discounts to homeowners who complete a wind mitigation inspection.
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Home and auto insurance bundles: Buying home and auto insurance from the same company can lower what you pay for both. Most insurers offer a discount when you hold more than one policy with them.
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High deductibles: Choosing a higher deductible for your base coverage or for named storms can help ease ongoing costs. Deductibles operate as a form of risk-sharing; if you agreed to take on a greater portion of your costs in the event of a disaster, your insurance company will charge less for your coverage.
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Annual policy review: Take time each year to review your home insurance coverage before renewal and ensure that you’re not overpaying or overinsuring your home.
Frequently asked questions
Are people leaving Florida because of homeowners insurance?
Recent data show a sharp drop in net migration to Florida, with some areas actually losing residents. Rising home insurance costs may play a role in this trend, but there are likely multiple factors at play. Other homeownership costs, including maintenance costs, are also rising, along with the overall cost of living. Residents may also be relocating due to related impacts from climate change.
Are home insurance prices going down in Florida?
Some home insurance companies in Florida have filed for modest rate decreases in recent years. In January 2026, Gov. Ron DeSantis announced statewide home insurance premium reductions for both Citizens and private insurers. However, these reductions haven’t brought costs in line with pre-pandemic averages for most homeowners, and some continue to see rate increases.
Why is it so hard to get homeowners insurance in Florida?
The increased risk of major natural disasters is the primary factor making it more difficult to get homeowners insurance in Florida. As the frequency and cost of tropical storms and other climate disasters increases, many carriers have withdrawn partially or fully from the Florida market and raised premiums in high-risk coastal zones.
What insurance companies are dropping homeowners in Florida?
Many insurance companies have issued nonrenewal notices to homeowners in Florida in recent years, especially in high-risk coastal areas. In some cases, insurers have chosen to exit the state entirely, while others have simply reduced their active business in areas prone to serious hurricane damage.
