Florida home insurance crisis persists with soaring premiums
Florida home insurance crisis persists
Florida's home insurance crisis continues, with nearly all residents facing higher premiums this year. Florida reportedly has the highest property insurance rates in the country, with premiums reaching the thousands. Determining an exact figure has proven challenging.
TALLAHASSEE, Fla. - Florida's home insurance crisis continues, with nearly all residents facing higher premiums this year.
Florida reportedly has the highest property insurance rates in the country, with premiums reaching the thousands. Determining an exact figure has proven challenging.
"I think I saw two weeks ago this quote that the average cost of property insurance in the state of Florida is $11,000. It is not," said State Insurance Commissioner Michael Yaworsky, correcting the figure to approximately $3,400. However, homeowners have reported significantly higher costs.
"It’s gone from $1,700 to $5,500 now," homeowner Shannon Martin said of her insurance expenses.
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Homeowners in South Florida typically pay more than those in Central and North Florida, contributing to variations in averages and median. Florida's property insurance estimates range from $4,000 to over $10,000.
Florida homeowners pay $6,300 per year for insurance, compared to the national average of $2,100 per year. State regulators maintain that their data supports the $3,400 estimate.
"We have the entire universe of every single dollar of premium that's collected by insurers in the state and the number of policyholders," Yaworsky explained. "The average price is nowhere near $11,000; it’s about $3,400."
A recent leveling off of large rate increases has been a rare bright spot, with at least 19 companies aiming for small reductions or maintaining current premiums for the coming year. Despite this, rates in Florida could still increase by another 7% this year, although this is less than the rate hikes of recent years.