Florida Homeowners Are Concerned About Property Insurance Crisis

Insurance rates are rising at unprecedented rates, causing millions of people to struggle with the new premiums. 

In the last three years, insurance rates have doubled in some areas. Homeowners fear for their houses while their representatives in Congress struggle to help. 

Insurers are pulling out of states like Florida as damaging hurricanes and powerful storms become more common. The companies that remain have increased their premiums, leaving customers struggling to afford homeowners insurance. 

Rates have become so high in certain areas that some homeowners are forgoing health coverage, medication, or even cutting their grocery lists just to afford their home insurance.  To combat this, lawmakers are proposing property insurance reform to stop the ongoing crisis. 

U.S Rep. Frederica Wilson has proposed the Homeowners’ Defense Act. This bill would help bring about the end of the ongoing insurance crisis. 

If the bill passes it would protect and improve Florida’s management of disaster risks, encourage mitigation and preventive measures and support insurance market stability. Wilson introduced the act in Washington D.C with other lawmakers and policy experts from Florida and the rest of the county. 

“Everywhere I go in Florida, it doesn’t matter what parts folks are from, people are concerned about our property insurance crisis,” Wilson said a recent press conference. “And with hurricane season just starting, causing a rush through the hearts of South Florida families, the fear of the rising costs of homeowners’ insurance is real and tangible for folks. Property insurance has become too expensive, with limited options and many insurers refusing coverage. It’s time we tackle this issue head-on.” 

According to a recent Insurance Newsnet article, the Consumer Federation of America (CFA) found that American homeowners saw insurance premiums increase an average of 24 percent over the past three years. The CFA also discovered that insurance premiums rose twice as fast as inflation between 2021 and 2024. 

In 2024 customers nationwide paid an average of $3,303 for home insurance. Florida’s average rate is almost double the nationwide average. The highest rate for homeowners insurance in Florida is $9,462, or $789 a month. 

Wilson’s proposal has garnered support in Congress. Reps. Maxwell Frost (DFL), Troy A. Carter, Sr. (D-LA), Nikema Williams (D-GA), and Jonathan Jackson (D-IL) have all endorsed the bill.

Frost, a staunch supporter of the bill, claims that the insurance crisis in Florida is forcing families into tough situations, with even tougher choices. 

“I’ve heard from central Floridians that they are forgoing coverage altogether because they can’t afford both healthcare and property insurance,” he said during the recent press conference. “It’s a shame that the property insurance crisis has put folks in this position. And it’s leading to a dangerous situation as climate change creates even more devastating hurricane seasons.” 

Experts warn that with rising rates, residents of Florida may choose to abandon the state for more affordable insurance. 

The Democrats in the Florida Legislature have campaigned for capping insurance premiums and other reforms, but the GOP-controlled House and Senate shot down the proposal. 

In a 2023 vote that split along party lines, Florida lawmakers chose to pass an insurance reform that didn’t benefit homeowners but instead made it harder for customers to sue insurance companies. This did incentivize more private insurance carriers to return to Florida, but at the expense of Florida homeowners. 

Citizens Property, the state-funded backstop insurer of last resort carries currently is one of the largest insurers in Florida, often carrying the largest number of policies in the state which puts it at risk if a major storm hits.