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Florida Facing Home Insurance Crisis


For most people, their home is their biggest asset, so of course they want to insure it. Home insurance protects your home, giving you money to repair or rebuild your home in the event of a disaster.

However, some states, like Florida, are having insurance crises. Because Florida is known for hurricanes and other extreme weather events, insurance companies are increasing their premiums or pulling out of the market altogether. For most homeowners, this means unaffordable insurance. Many are even going without insurance altogether because they do not have the money to pay for tens of thousands of dollars in annual premiums.

But just how much are homeowners paying? It’s hard to determine an exact figure. Some are saying that the average cost of property insurance in the state is $11,000. The state insurance commissioner claims that the actual figure is approximately $3,400. Homeowners are saying they are paying significantly more than that, though.

Homeowners in South Florida tend to pay more than those in Central and North Florida. Florida’s property insurance estimates range from $4,000 to over $10,000. It is estimated that Florida homeowners pay $6,300 per year for insurance, which is triple the national average of $2,100 per year. This tracks. One homeowner says her insurance premium has more than tripled, from $1,700 to $5,500.

The good news is that large rate increases have leveled off. In the coming year, at least 19 companies are aiming for small reductions or maintaining current premiums. Still, it is possible that rates in Florida could still increase by another 7%. It would still be less than the rate hikes of recent years.

Why is Getting Home Insurance So Difficult?

Florida residents are having a tough time getting cheap insurance. Here are some reasons why:

  • Location risks. Homes in areas prone to natural disasters (such as hurricanes, floods, earthquakes, and wildfires) are considered high-risk, leading to higher premiums or difficulty obtaining coverage.
  • Crime rates. High crime rates in a neighborhood can make insurers hesitant to provide coverage.
  • Market conditions. In some areas, the insurance market might be saturated or highly competitive, making it harder to find affordable options.
  • Property-specific issues. Older homes or those in poor condition may pose higher risks of damage or claims, deterring insurers. A history of frequent or significant insurance claims can make a property less attractive to insurers. Homes with certain features, like swimming pools, trampolines, or outdated wiring and plumbing, may be harder to insure due to increased liability risks.

Seek Legal Help

Home insurance is in place to help homeowners protect their home. However, Florida and other states are seeing insurers drop out, causing a massive crisis and forcing homeowners to overpay.

Fort Lauderdale homeowners’ insurance lawyer Edward J. Jennings, P.A. can help you with claims and coverage issues. We understand how these policies work and will help you get compensation for damages. Schedule a consultation today by filling out the online form or calling 954-764-4330.



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