If you own a home in Florida, you already know the sticker shock: insurance here costs more than anywhere else in America. We're not talking a little more expensive—we're talking two to three times what homeowners in other states pay. The average Florida homeowner paid between $8,770 and $14,140 for insurance in 2024, compared to a national average of around $2,400. That's not a typo.
But it's not just about the price. The Florida insurance market has been in crisis mode, with major carriers fleeing the state, policy cancellations becoming common, and homeowners scrambling to find coverage. If you're buying a home, refinancing, or just trying to understand why your premium jumped 30% last year, this guide breaks down everything you need to know about navigating one of the country's toughest insurance markets.
Why Florida Home Insurance Is So Expensive
Let's start with the obvious: hurricanes. Florida gets hit harder and more often than any other state. When Hurricane Ian tore through Southwest Florida in 2022, it caused tens of billions of dollars in insured losses. Every major storm drains insurance company reserves and makes them rethink whether operating in Florida is worth it.
But hurricanes aren't the whole story. Here's something that might surprise you: while Florida accounts for just 9% of the nation's homeowners insurance claims, it represents 79% of homeowners insurance lawsuits. That's right—litigation costs in Florida are astronomical. Roofing contractors and public adjusters have gamed the system for years, filing inflated claims and lawsuits that drive up costs for everyone.
Add in rising construction costs, increased reinsurance expenses (what insurance companies pay to insure themselves), and the fact that multiple insurers have gone bankrupt in recent years, and you've got a perfect storm of factors pushing premiums to record highs. In some areas like Miami-Dade County, premiums exploded by 322% in 2024. In Hialeah, the average homeowner can expect to pay over $26,000 by the end of 2025—more than seven times the national average.
Understanding Hurricane Deductibles
Here's where Florida insurance gets really different from the rest of the country. You probably know what a regular deductible is—that's the amount you pay out of pocket before insurance kicks in, usually somewhere between $500 and $2,500. But in Florida, you also have a separate hurricane deductible, and it works completely differently.
Hurricane deductibles are calculated as a percentage of your home's insured value—typically 2%, 5%, or 10%. So if your home is insured for $500,000 and you have a 2% hurricane deductible, you're on the hook for the first $10,000 of damage from a hurricane. Choose a 5% deductible and that jumps to $25,000. This catches a lot of people off guard when they file their first hurricane claim.
The good news? Thanks to Florida law, this hurricane deductible applies only once per calendar year, no matter how many storms hit your property. If your home gets damaged by two hurricanes in the same year, you only pay the hurricane deductible once. And all insurers must offer you options—typically $500, 2%, 5%, or 10%—though if your home is insured for $250,000 or more, they don't have to offer the $500 flat deductible.
Flood Insurance Is Always Separate
This is critical: your homeowners insurance does not cover flooding. Period. If a hurricane's storm surge floods your home, if a river overflows, if heavy rain causes water to seep in—none of that is covered by your regular policy. You need separate flood insurance, and for many Florida homeowners, it's now mandatory.
If you have a mortgage from a federally backed lender and your home is in a high-risk flood zone, you're required to carry flood insurance. But even if you're not technically required, it's worth considering. About 25% of flood insurance claims come from properties outside high-risk flood zones. And if you're insured through Citizens Property Insurance Corporation (Florida's state-backed insurer of last resort), new rules are making flood coverage increasingly mandatory.
Starting in January 2024, Citizens began requiring flood insurance for homes with a replacement cost of $600,000 or more. That threshold drops to $500,000 in 2025, $400,000 in 2026, and by 2027, all Citizens policyholders will need flood coverage regardless of their home's value. You can get flood insurance through the National Flood Insurance Program (NFIP) or from private insurers, who now offer more competitive options than they used to.
The Carrier Exodus and What It Means for You
Over 30 insurance companies have left Florida or stopped writing new policies since early 2024. Big names like State Farm stopped issuing new homeowners policies in 2023. Farmers, Progressive, and AAA have all scaled back or pulled out entirely. When your carrier leaves, you typically get a non-renewal notice giving you 90-120 days to find new coverage—and that's when the real scramble begins.
Many homeowners who get non-renewed end up with Citizens Property Insurance, which has become the largest homeowners insurer in Florida by default. Citizens was designed to be the insurer of last resort, not the go-to option for hundreds of thousands of homeowners. And while Citizens policies are often cheaper initially, they come with limitations and the risk of large assessments if a major hurricane depletes their reserves.
The good news? There are signs of stabilization. In February 2025, Citizens announced a 5.6% rate reduction—the first decrease after years of increases. Over 17 new insurance companies have entered the Florida market since late 2023, with 11 more approved in early 2025. The market is still volatile, but it's not all doom and gloom anymore.
How to Navigate Florida's Insurance Market
So what do you actually do? First, shop around—and we mean really shop around. Get quotes from at least three to five insurers. Prices can vary wildly for the same coverage. Work with an independent insurance agent who knows the Florida market and can access multiple carriers on your behalf.
Second, consider your deductibles carefully. A higher hurricane deductible can significantly lower your premium, but make sure you have enough savings to cover it if a storm hits. Don't choose a 5% or 10% hurricane deductible unless you can comfortably afford to pay $25,000 to $50,000 out of pocket.
Third, invest in home improvements that can lower your premiums. A newer roof (especially impact-resistant), hurricane shutters, reinforced garage doors, and wind mitigation upgrades can all qualify you for discounts. Many insurers now require roofs to be less than 15-20 years old, so if you're buying a home with an older roof, factor in replacement costs.
Finally, don't skip flood insurance just because it's expensive or you think you don't need it. A separate flood policy could be the difference between rebuilding after a storm and financial ruin. Even if you're not in a high-risk zone, consider getting a quote—coverage outside flood zones is often much more affordable than you'd expect.
Living in Florida means accepting higher insurance costs as part of the deal. But with the right coverage, smart shopping, and an understanding of how the market works, you can protect your home without breaking the bank. Start by getting multiple quotes, understand your deductibles, secure flood coverage, and keep an eye on market changes. Your home is likely your biggest investment—make sure it's properly protected.
