According to a recent survey by Redfin and Zillow data, roughly 12% of Florida homeowners are planning to move out of the state due to rising insurance costs. This is twice the national rate of 6.2% according to the data.
Florida has been experiencing issues with their homeowners insurance market for years, due to roofing contractor fraud and lawsuits. Due to local laws which made it easy for shifty contractors and their legal partners to sue, many insurers have pulled out of Florida entirely or refuse to write policies in areas where fraud is high.
As insurers have left the state, homeowners have had to turn to the state-run insurer of last resort. Currently the state government-backed insurer Citizens Property Insurance Corp. is the largest insurer in the state.
As Citizens is the largest insurer in the state it runs the risk of being unable to cover all claims should a massive storm or other natural disaster hits the state. Legislators, who have failed for years to solve the insurance crisis despite passing new laws are now passing legislation that requires homeowners to move insurers if a private insurance company offers a premium that is within 20% of what they are paying for coverage with Citizens, which in many cases will result in a higher premium.
Recent data shows that:

  • According to Newsweek, 12% of Florida homeowners have been dropped by their insurance company which is much higher than the national average of 8.3%.
  • Zillow shows that Florida currently has 218,050 properties for sale and a whopping 3 percent of them are listed by motivated sellers.
  • Roughly 78% of homeowner insurance related litigation occurs in Florida.

As the country moves into summer, hurricane season is approaching and according to long range forecasts it could be a very active hurricane season with 23 named storms and five major hurricanes predicted which could easily put a strain on Citizens and the entire Florida insurance market if a major storm was to make landfall in the state.
If your homeowners insurance has headed up in recent years or you are having a hard time finding coverage, here are a few tips to help keep your premium somewhat affordable.

  • Shop your coverage: This is the best way to lower your premium, although the state of Florida’s insurance market makes it less effective in the Sunshine State. Get quotes from a wide variety of insurers and always make sure you are comparing apples to apples when it comes to coverage levels and deductibles.
  • Up your deductible: Raising your deductible can help lower your premium, insurers like it when you have more skin in the game and will lower your premium. If you can afford to double your deductible, you should see substantial savings. Always choose a deductible that you can easily afford in case you have to make a claim.
  • Upgrade your property: Adding wind and hail resistant shingles will typically result in a discount on your premium as will other upgrades such as a monitored security system or even a sprinkler system. Check with your insurer regarding upgrades that will lower your premium.
  • Discounts: Insurers offer plenty of discounts and they are great way to lower your premium. Bundling your home and auto is just one example, check with your insurer to make sure all available discounts are being applied to your policy.