Nearly three-quarters (70.3%) of Florida homeowners and over half (51%) of California homeowners say they or the area they live in has been affected by rising home insurance costs or changes in coverage in the past year. That compares with less than half (44.6%) of homeowners nationwide.
That’s according to a Redfin-commissioned survey conducted by Qualtrics in February 2024. The nationally representative survey was fielded to 2,995 U.S. homeowners and renters.
Coastal Conundrum: Expensive Cities and Vulnerable States
Six of the Ten most expensive cities for homeowners insurance in the U.S. are along the coast in South Florida, and all have average annual rates above $11,000, Insurify said.
- Hialeah average premium: $17,606
- Miami average premium: $16,717
- Fort Lauderdale average premium: $15,484
- Hollywood average premium: $13,834
- West Palm Beach average premium: $13,123
- Port St. Lucie average premium: $11,897
- Kenner, Louisiana average premium: $10,204
- New Orleans average premium: $9,780
- Ocean Springs, Mississippi average premium: $9,428
- Thibodaux, Louisiana average premium: $7,763
Weathering the Storm: Challenges and Solutions
The states with the highest home insurance costs are prone to severe weather.
Florida, Louisiana, Texas, Arkansas and Mississippi are vulnerable to hurricanes, said Insurify. Texas, Colorado and Nebraska face a growing wildfire risk. Nebraska, Texas and Kansas are at high risk for tornadoes.
More than a dozen home insurance companies have declared insolvency since 2019. Farmers Insurance stopped covering Florida and major insurers have not renewed policies for high-risk homes.
Citizens Property Insurance Corp.: A Beacon of Hope or a Buoy in Troubled Waters?
State-run Citizens Property Insurance Corp. is the largest insurer in Florida. Data from S&P Global shows Citizens grew over 65% in a single year as more and more Florida homeowners found themselves unable to buy policies elsewhere.
Preparing for the Unknown: Tips for Homeowners
Twenty-one percent of homeowners say they can’t afford their current mortgage rate for long, and 9 percent say they can’t afford it now. Rising insurance costs add to the burden, Insurify said.
So what can homeowners do?
Plan for potential damage by doing some research and taking steps to protect your home. Some insurers offer discounts for home upgrades.
Check flood and wildlife zone maps from FEMA and the National Weather Service.
Install impact windows or hurricane shutters.
Follow the IBHS-recommended fortified roof standard, which prevents damage from high winds, hurricanes, hail, severe thunderstorms and even tornadoes up to EF-2.
Legislative Lifelines: What’s Being Done to Address Rising Rates?
Florida lawmakers have stepped in repeatedly over the past years to attract more private carriers to the state known for its costly storms. Reforms were driven by arguments that costly litigation was driving up rates.
In conclusion, as homeowners grapple with rising insurance costs and the uncertainties of severe weather, it’s essential to stay informed, take proactive measures to protect their homes, and advocate for legislative changes that promote affordability and stability in the insurance market. By working together and navigating these challenges wisely, homeowners can chart a course towards a more secure future amidst the storms of life.