If you own a home in Florida, you probably felt your wallet wince at your last insurance bill. On average, homeowners in the state are paying $5,838 a year to insure their homes, the third highest in the nation. In parts of the Keys, premiums can top $18,000. Miami homeowners are seeing bills around $10,000, and in Clearwater or St. Petersburg, it is in the low $5,000s. Even more shocking, more than 1.2 million owner-occupied homes have no insurance at all.
So what is the state Legislature doing about it? Not much, and that is largely by design.
During this legislative session, a handful of property insurance bills were filed, but most seem unlikely to survive the process. This is not another round of sweeping reforms like a few years ago when homeowners were paying an average of about $3,000 a year and lawmakers had to call three separate special sessions to address the crisis.
Back then, reforms limited litigation, curbed shady contractor schemes, and pushed customers off the state-owned insurer. Those efforts are still working and lawmakers appear to want to give the market time to recover naturally. In other words, the plan is hands-off.
For anyone staring at another five-figure renewal notice, that hands-off approach can be infuriating. But Florida’s most powerful leaders are on board with it.
What the Numbers Really Show
The average premium of $5,838 comes from a Bankrate report analyzing the cost to insure a $300,000 home nationwide. Most cities are actually below that number. In Tallahassee, for example, the average is $2,199, and in Tampa it is under $3,800. The problem is the high-end premiums, which push the average up. In Key West, for instance, homeowners are seeing rates of $18,545.
The more alarming figure may be the number of Floridians without insurance. Out of 6.2 million owner-occupied homes, 1.2 million have no coverage at all, placing Florida sixth-highest in the nation. These are not vacant or vacation properties. These are people’s primary homes with no safety net if a hurricane hits.
Last year, the state reported that most policyholders saw their premiums rise, with two-thirds insured by companies that increased rates. Only one-third of homeowners were with companies that lowered costs.
Is Relief on the Horizon?
There is some hope. The state office regulating insurance recently reported that more companies are now lowering rates or keeping them flat. Regulators and industry groups say the market is “stabilizing.” That does not mean premiums are dropping significantly. It can simply mean bills are staying high or climbing more slowly.
One bill recently passed by the state House would force insurance companies to be more transparent about how they use affiliates to shift profits, a practice that has drawn widespread criticism. Transparency has been a longstanding issue, with companies invoking trade secrets to hide policy details even though they mail the same manuals to customers. That bill faces long odds in the Senate.
Senate President Ben Albritton has made it clear that major changes to property insurance are unlikely this year. He argues that the previous reforms, combined with a storm-free year, should be enough to allow some rate relief. He points out that Florida already caps insurance company profits and that more companies are seeking reductions.
For years, Floridians have been promised that rates would drop or at least stabilize. While some progress is being made, most homeowners are still frustrated by the high costs. The message remains familiar: relief is coming for some, others will have to wait, and everyone should hope the hurricanes stay away.
Homeowners have heard that before, but for now, patience seems to be the state’s official strategy.
