Hurricane-driven rates test insurance affordability for many Floridians
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As Florida home insurance rates continue to climb and hurricanes grow in frequency and strength, coverage is slipping out of reach for a growing number of residents.
Why it matters: Homeowners in Florida are on the hook for the most expensive premiums in the nation, and at least 1 in 5 of them have decided to forgo coverage altogether.
- The state's insurer of last resort, Citizens Property Insurance, paid $823 million in claims from the 2024 hurricane season and awaits approval from state regulators for a 13.5% rate hike.
By the numbers: In Tampa Bay, 1.2 million properties are at risk of insurance rate hikes or non-renewal due to wind or flood damage, according to First Street Foundation.
- Florida's average premium for all-perils single-family home policies increased 3.1% between the second and third quarter of 2024, a South Florida Sun Sentinel analysis shows.
Threat level: Hillsborough County has a "very high" risk index — which FEMA uses to measure a county's risk of natural disasters, scoring it based on exposure, vulnerability and ability to recover.
- Pinellas, Pasco, Hernando, Manatee and Sarasota counties have a "relatively high" risk index.
- Hurricanes Helene and Milton dealt historic blows to the region, with buildings destroyed, communities flooded and lives lost.
Zoom out: The U.S. saw 28 weather and climate disasters costing at least $1 billion in 2023 — the highest on record. Damages totaled $93 billion.
- 2024 disaster data is not yet out, though it's expected to follow the trend.
What to watch: Insurers are factoring climate and extreme weather risks into the premiums they charge for coverage, while some are suspending coverage, Axios' Brianna Crane reports.
- That's pushing many homeowners to opt for the insurer of last resort — but often at higher rates.