The state of Homeowner’s Insurance in Florida affects all Floridians, even those who rent or live here for part of the year.
We still pay the highest premiums in the country. The average homeowner’s policy in Florida costs $2625, 24% above the national average. Our extreme weather events (we all know about those) and lots of litigation (Florida has 9% of homeowner policies and 79% of homeowner lawsuits!) cause these issues. But, despite the bad press, additional insurance carriers are launching in the Florida market. As of today, 16 new insurance carriers have established themselves in the Florida market, two of which entered the market this year.
Why are there so many new options for Homeowner’s Insurance companies in Florida?
At the beginning of 2023, the Florida Senate passed new laws to attract homeowner insurance businesses to the Florida market. Senate Bill 2-A limited one-way attorney fees and fraud, expanded “reinsurance” affordability for insurers, and tightened up timelines for homeowners reporting damage and insurers communicating and paying out on claims. It seems SB 2-A is moving homeowners’ insurance in the right direction. And, the Senate adopted additional laws in subsequent years.
Generally, more competition in the market means positive outcomes for consumers. I don’t expect our premiums to decrease, but the competition stabilizes our premiums and entices companies to stay, which gives consumers more choices. (If you want the nitty-gritty on the recent bills passed in Tallahassee, along with a lot of other good info, this website breaks it all down.
What about Citizens’ Homeowner’s Insurance Policies?
And what about those of us who hold Citizens’ policies? As of February 2025, the number of Citizens policies dropped to 850,000 from a high of 1.4 million. If you hold a Citizens policy, Florida might require you to switch to a private carrier if the premium is within 20% of what you currently pay. There are benefits to switching to a private carrier, including better insurance coverage and reducing the homeowner’s risk exposure. Citizens scheduled my property to be reviewed this year. I’m waiting to see what that premium will be.
Flood Insurance: Is It Worth It?
When we stare down the barrel of a hurricane during our storm season, full coverage for every possible disaster seems like a good idea. When the premiums come due, not so much. Most flood insurance is not offered through private insurers, but through the National Flood Insurance program administered by FEMA. The payout on this insurance maxes out at $250,000 for single-family homes.
Homeowners in high-risk areas are only required to get flood insurance if they have a mortgage on the property and the lender requires it. Only 6% of homeowners hold flood insurance policies, and most of those homeowners live in coastal areas. I personally don’t have a policy even though I live close to a river, but you may feel comfort with a policy if you live in a low-lying area. Search here if your home is in or near a flood zone.
