Why is homeowners insurance so expensive in Florida?

Florida home insurance is among the most expensive in the country. A 2025 report from the Consumer Federation of America found homeowners paying an average of $9,462 per year for $350,000 in dwelling coverage — well above the national average of $3,303. Several pressures drive that cost: a history of costly insurance litigation, hurricane-driven reinsurance costs, rising construction and labor expenses, and a wave of insurance companies leaving the state or going out of business.

There are signs that the market is stabilizing, however. Florida regulators have reported rate decreases and new insurers entering the market, while Citizens Property Insurance — the state's insurer of last resort — has seen its policy count fall sharply from its 2023 peak. But relief has been uneven, and many homeowners are still paying a high cost for coverage. Shopping around, strengthening your home against wind damage, and qualifying for discounts can all help reduce how much you pay. 

What's driving Florida's high home insurance costs?

Several factors have pushed Florida premiums — the amount you pay for coverage — higher, and they tend to compound one another. 

Litigation and claims disputes 

Florida has long accounted for a disproportionate share of the nation's property insurance lawsuits. In 2020, the state generated roughly 9% of homeowners insurance claims nationwide but nearly 79% of the lawsuits tied to those claims, according to the Florida Office of Insurance Regulation. Assignment of benefits (AOB) agreements — which let a homeowner transfer their right to an insurance payout directly to a contractor or other third party — were part of that picture, along with attorney-fee rules that made litigation more financially attractive to pursue.

Florida lawmakers passed two major reforms to address this: Senate Bill 2-A, signed in December 2022, banned AOB assignments on new property policies, and House Bill 837, enacted in March 2023, eliminated one-way attorney fees for property insurance claims. By 2025, Florida's share of lawsuits had dropped to about 41% — still disproportionate to its claims share but nearly half of what it was five years earlier.

Hurricanes and reinsurance

Florida insurers face the possibility of extremely large losses from hurricanes, so they rely heavily on reinsurance — insurance that insurance companies themselves buy to help cover catastrophic losses. When reinsurance gets more expensive, insurers often pass some of that cost on through higher premiums.

Higher rebuilding costs

Materials, labor, and construction costs have all risen substantially over the past decade. When it costs more to repair or rebuild a storm-damaged home, insurers generally need to charge more to cover that larger potential payout.

Insurer exits and insolvencies

At least nine Florida-focused property insurers have become insolvent since 2021, and other major companies pulled back from issuing new policies in the state during the worst years of the crisis. This left some homeowners with fewer choices, increased the risk of nonrenewals, and pushed more policies onto Citizens Property Insurance Corporation, the state's insurer of last resort.

For Florida homeowners, the result has often been a difficult combination of higher premiums and fewer options. Even as some of these pressures begin to ease, the improvement hasn't reached every household at the same pace.

Is Florida's home insurance market getting better?

The latest data suggest Florida's home insurance market is genuinely improving. The reforms passed in 2022 and 2023 were intended to reduce legal costs and make the state more attractive to insurance companies — and several signs suggest that's happening.

Since the reforms described above took effect, more than 15 new insurance companies have entered the Florida market, and dozens more have filed for rate decreases or held rates flat in 2026. Citizens Property Insurance even approved an average rate decrease of 8.8% — the largest in the company's history. Plus, its policy count has fallen to about 278,000, down sharply from a 2023 peak of roughly 1.4 million, as more homeowners moved back to private insurers. Since Citizens exists to cover homeowners who can't find insurance elsewhere, a shrinking policy count is a good sign for the broader market.

Still, these improvements don't mean Florida's insurance crisis is over. Reforms take time to work, and homeowners aren't all seeing relief. If you're still facing a high premium or limited choices, broader market improvement may not feel like much improvement at all yet.

How to lower your home insurance costs in Florida 

You may not be able to control Florida’s broader insurance market, but there are steps you can take to potentially lower your own premium.

You can also ask your insurer about other home insurance discounts you might qualify for, and check out more ways to lower your home insurance premium. Just be careful not to reduce coverage so much that the savings leave you exposed to a loss you can't afford.

Frequently asked questions

Why has homeowners insurance gone up so much in Florida?

The primary reasons why homeowners insurance is so expensive in Florida include the state’s hurricane exposure, high reinsurance and rebuilding costs, and years of costly insurance litigation that contributed to insurer losses and fewer companies serving the state. More recently, though, the trend has begun to improve. Florida regulators report more rate decreases and new insurers entering the market, even though many homeowners are still paying high premiums.

How can I lower my homeowners insurance in Florida?

Start by getting quotes from multiple insurers, since rates can vary significantly. Be sure to request the same coverage types and policy limits across all quotes for a fair comparison. A wind mitigation inspection may uncover features that can qualify your home for discounts, as well. You could also consider adjusting your deductible(s), but only if you could comfortably afford the larger out-of-pocket cost in the event of claimable damage.

How much is homeowners insurance on a $300,000 house in Florida?

The cost depends on much more than the home’s purchase price. Home insurance is generally based on your dwelling coverage, one of the primary coverages included in your policy, which reflects the estimated cost to rebuild your home rather than its market value. Kin customers in Florida pay an average of $1,721 per year for $300,000 in dwelling coverage (as of July 2026). Your actual premium is likely to vary from the average based on factors such as location, home age, roof condition, and coverage choices. 

How much is homeowners insurance on a $400,000 house in Florida?

Kin customers with $400,000 in dwelling coverage pay an average of $2,295 per year as of July 2026. Keep in mind that dwelling coverage is based on the estimated cost to rebuild your home, not on its market value or purchase price. Your actual premium will also depend on factors such as your deductible, coverage choices, and, in some cases, your proximity to a fire station (among other variables).