Florida’s home insurance crisis is becoming too dire for some residents who feel they may have no choice but to leave the state in the face of high premiums and hurricanes. Several residents have spoken to Newsweek about how with “no solutions” in sight to fix the problem, they will likely have to relocate.
The current home insurance crisis has been several years in the making, with several factors at play. Premiums have skyrocketed following numerous deadly hurricanes that have battered the state in recent memory. In 2022, Hurricane Ian caused a whopping $112 billion in damage, the costliest storm in Florida’s history. Recent storms Helene and Milton, which arrived within a fortnight of one another, have already resulted in $1.4 billion and $2.4 billion in losses respectively.
As if the threat of destructive hurricanes wasn’t enough, the industry has in recent years been dealing with litigation from roof-insurance scams, as well as reinsurance costs having risen sharply. Reinsurance serves as backup coverage for insurance companies, offering a financial safety net to cover large or multiple payouts after events like storms or natural disasters.
Higher costs and payouts for insurance companies mean higher premiums for consumers. According to virtual insurance company Insurify, Florida homeowners paid an average annual premium of $10,996 in 2023—the highest in the country.
The exorbitant costs are forcing Florida homeowners to either self-insure or under-insure because “insurance costs are so high and insurance companies have been pulling out of the state,” Florida-based expert broker and real estate advisor at Sotheby’s International Realty, Jenna Stauffer, told Newsweek.
One in five seniors reportedly planning to move
“Something terrifying is happening in the Sunshine State—one in five seniors I talk to are planning their move—or at least exploring options,” Alex Schlesinger, founder and CEO of Active Mutual, told Newsweek. “These are desperate people watching their fixed incomes dissolve under astronomical costs.”
Composite image created by Newsweek. Florida residents deal with some of the highest home insurance rates in the country.
Photo-illustration by Newsweek/Getty
Some homeowners who have been unable to find insurance on the private market have turned to the state’s insurer of last resort—Citizens Property Insurance Corporation—but are now being turned back to the private market as it deals with a record number of policies.
With altogether few options left in terms of affordability, numerous Floridians have told Newsweek they are considering leaving altogether—and some already have.
“No solutions in sight”
Citizens currently holds the biggest share of homeowner policies in the state. Created by the Florida Legislature in 2002, it provides insurance to eligible Florida property owners who cannot find insurance coverage in the private market. As of the end of September 2024, Citizens had 1,263,055 policies in force, a considerable increase on the same time five years ago in September 2019, when it had 421,332 active policies.
To ease the burden, the state insurer has begun “depopulating”—offering customers alternative coverage with private insurers, so long as it doesn’t exceed more than 20 percent of their current coverage cost. It comes after Florida regulators approved eight new property insurers to write business in Florida in order to promote market stability.
In June, the Citizens Board of Governors unanimously supported an increase of rates by 14 percent, bringing them closer to rates offered by private insurers in hopes of urging more policyholders to leave Citizens.
These higher costs are making residents consider moving elsewhere. Retiree Ron Velluci purchased his home in St. Augustine earlier this year, and after his insurance broker shopped around for policies for his new home, he found that Citizens was the only coverage option.
Just months later, he was told he would be depopulated from Citizens and moved to another provider if the carrier’s quote was less than 20 percent more than what he is currently paying Citizens, which he said has left him “stuck between a rock and a hard place.” While the move won’t take place until May 2025, he said the prospect could force him to make some difficult decisions.
“My wife and I moved to Florida twenty years ago from Maine and are now both retired and on a fixed income,” he told Newsweek. “What we are currently paying for homeowners’ insurance is within our budget, but with the cost of homeowners insurance rising so dramatically, and with no solutions to fix the problem in sight, we are faced with the possibility of having to either have no insurance—not a smart option—or to relocate to another state.”
“I’m not sure I’ll be sad when I have to go”
Havana-based Henry Williams, who is also facing depopulation from Citizens and lives on a fixed retirement income, told Newsweek that in the face of his insurance premium rising, the “American dream to accrue wealth in owning a home is dead—at least for me in Florida.”
“I could lose all that my husband and I worked so long and hard for swiftly with one storm, or drip by drip by through rising insurance costs,” he said. “I am in a tough situation. I can’t afford to leave and I can’t afford to stay.”
“There is much I loved about life in Florida until recently. I’m not sure I’ll be sad when I have to go.”
Even those who only spend part of their time in Florida have given up. Canadian Frank Fulton and his wife enjoyed spending summers in West Palm Beach after purchasing a home there in 2019.
“We did not have any insurance on the house except for liability coverage,” he told Newsweek. “I contacted insurance agents every year and was told every time that they could not get any quotes from any insurers for new policies. I did not contact Citizens. I spent summers and fall watching the Florida weather worrying that our place would be wiped out by the next hurricane.”
The struggle to find insurance resulted in them selling up—and for a 10 percent loss on their original purchase as well.
Phil Jones, broker at Orange Park-based Your Choice Real Estate, has witnessed firsthand these kinds of scenarios. He said Florida is “now at the precipice and I’ve seen homeowners forced to sell, and buyers unable to buy homes because of this issue.”
