Homeowners in the Sunshine State are still not seeing much relief when it comes to their property insurance.
The national average in premiums paid by homeowners across the U.S. is around $2,230 per year. A recent analysis conducted by real estate investment firm Fire Cash Buyer revealed that Florida residents are paying the most above the national average for home insurance, with annual premiums at $3,303 above average. That equals around a 40% rate hike in recent years.
Joel Efosa, CEO of Fire Cash Buyer, said the cost increases in Florida are due to several factors. Florida’s coastal location exposes it to frequent hurricanes, tropical storms, and flooding. The most expensive county is Monroe County, which includes the Florida Keys, with an average annual premium of $31,687 for homes without wind mitigation.
“Home insurance premiums have been steadily rising due to several factors, including increasing natural disasters, higher construction costs, and inflation,” said Efosa.
Florida’s Chief Financial Officer (CFO) Jimmy Patronis has been traveling through the state meeting with consumers on this very issue. He recently held a ‘Fixing Problems for Floridians Fair‘ where Patronis’ office met with Florida homeowners and business groups, reassuring them action had taken place to help reduce some of the burden Floridians are experiencing.
Since 2022, Patronis says the new laws passed by the Florida Legislature will help consumers. His office says by clamping down on frivolous litigation, eight carriers have entered the state, 13 companies have filed for rate decreases, and there has been an 800% increase in take-out activity from Citizens Insurance, Florida’s carrier of last resort.
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