New Report Reveals: Florida Battles Steep Home Insurance Premiums Second Only Nationwide

Mike McKee, an Orlando homeowner, expressed concern about facing significant premium increases when he decided to leave Florida's disaster fund for coverage with another insurance company.

I saw an increase of around $400 this year, which raised my cost from $1,500 to $1,900," McKee shared with WESH 2. "I understand others have faced much more drastic changes, so I consider myself fortunate.

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The modification in his home insurance occurred just prior to a falling tree during Hurricane Milton damaging the metal roof he had put onto his house.

“So, it went all the way through into the living room, which meant repairs were necessary,” McKee stated. “Even though we pay premiums to our insurance company, they ended up covering only around three-quarters of the damage costs for the home.”

According to a recent report from Bankrate.com, Florida ranks as the second highest cost state for homeowner’s insurance.

As stated by Bankrate, the typical yearly insurance cost of $5,400 exceeds the national average by approximately $3,100.

All of Bankrate’s reports rely on a single coverage level, specifically $300,000 in dwelling replacement costs," explained Mark Friedlander, a spokesperson for the Insurance Information Institute. "In contrast, the Florida Office of Insurance Regulation gathers data reflecting the actual premiums paid across various coverage tiers in each of the state’s 67 counties.

Friedlander stated that according to the state’s 2024 data, Florida homeowners paid an average of $3,700.

He stated that, in reality, there was almost no difference in the premiums paid from one year to the next.

Friedland stated that Florida will consistently remain an "above average" state for insurance due to the significant risk from major storms. He advised that this is the ideal moment to compare various policy options before the hurricane season starts in 24 days.

"Friedlander mentioned that the market is getting better. There are new choices to compare your insurance coverage, which might allow you to secure a lower rate than what you have been paying over the past few years," he explained.

McKee stated that he believes Floridians continue to pay excessively for protecting their properties.

“I simply do not concur with the notion that this situation is acceptable or has stabilized," he stated. "Even if that’s true, having $5 eggs that have stabilized means they're still $5 per egg, which is significantly higher than prices from a year or two back—they remain extremely costly.”

Based on information from Bankrate.com, Florida ranks second only to tornado-ridden Nebraska when it comes to having the highest home insurance rates.

Homeowners in adjacent Georgia are paying approximately $3,500 less annually compared to those in Florida.

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