The rising cost of home insurance in Florida is prompting residents to consider moving, as per a survey conducted by real estate brokerage Redfin.
Approximately 11.9 percent of Florida homeowners who plan to relocate in the next year cited increasing insurance expenses as their reason, which is double the national average of 6.2 percent. The survey, commissioned by Redfin and conducted by Qualtrics in February 2024, included 2,995 U.S. homeowners and renters.
Florida’s property insurance market is in a crisis, leading to higher premiums for homeowners and policymakers searching for solutions. Redfin was contacted by Newsweek for comment via email on Tuesday.
While the primary cause of the crisis is the heightened risk of extreme weather events due to climate change, other contributing factors include excessive litigation in Florida, widespread fraud, and the rising cost of reinsurance.
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Private insurers in Florida are attempting to mitigate losses by reducing coverage or refusing policy renewals. Since 2017, 11 insurance companies offering homeowners insurance in Florida have liquidated, with five doing so in 2022. This has resulted in fewer options and higher premiums for Florida homeowners.
Florida homeowners are experiencing the challenges of the insurance market firsthand.
Over 70.3 percent of Florida homeowners have been impacted by rising insurance costs or coverage changes in the past year, a significantly higher percentage than the national average of 44.6 percent. The impact is also felt more in Florida compared to California, which is facing its own insurance crisis.
Among Florida homeowners surveyed by Redfin, 12 percent who faced insurance changes reported being dropped by their insurer, compared to 8.3 percent overall. Additionally, 27.7 percent expressed concerns about their insurer discontinuing coverage for their home in the future.
“Homeowners in areas with surging insurance premiums risk seeing their properties appreciate less than those in regions with stable premiums, and in some cases, may even incur losses,” stated Redfin Chief Economist Daryl Fairweather. “Homes with low disaster risk and insurance costs are likely to become more desirable and valuable as the impacts of climate change worsen.”
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
