How much of Miami's mortgage bill is consumed by home insurance
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Insurance eats up more of a homeowner's housing bill in the Miami metro area than almost anywhere else in the nation, data shows.
Why it matters: Steep insurance costs have dragged down our housing market, while property taxes threaten to make homeownership unaffordable for many.
The big picture: A growing share of monthly payments is going toward insurance, and that's not expected to change anytime soon, according to ICE Mortgage Monitor, an industry data provider.
- Nationally, insurance made up about 9.7% of the average mortgage payment.
Zoom in: In the South Florida metro area, which includes the Fort Lauderdale-Pompano Beach areas, it made up 19%, per the data.
- New Orleans had the highest share, at nearly 26%, while Oklahoma City ranked third at 18.8%.
- The analysis looks at single-family homes with mortgages that have taxes and insurance escrowed.
By the numbers: The average monthly insurance payment here ballooned from $306 to $519 over the past decade, per the data.
- The national average jumped from $106 to $191.
Context: A decade ago, insurance made up 17.8% of the average payment in the Miami metro area. But it dipped through the mid-2010s.
- More frequent natural disasters, plus rising costs to rebuild homes afterward, have hiked insurance costs, says Andy Walden, ICE's head of mortgage and housing market research.
Zoom out: Florida homeowners had the highest average annual home insurance bill last year at $14,140. As a result, 1 in 5 homeowners in the state have opted to forgo coverage altogether.
What's next: Insurify, which helps people compare quotes from multiple providers, projects home insurance premiums will climb in every state by the end of 2025 — with Florida expected to see a 9% increase.