Homeowners Insurance Costs Surge Across the U.S., Florida Takes the Lead with Soaring Rates

Homeowners insurance costs have surged across the U.S., with half of all states seeing increases of more than 10% in 2023, according to S&P Global data. Florida homeowners are facing particularly steep hikes, with 20% paying $4,000 or more annually. Between 2018 and 2023, Florida’s home insurance premiums skyrocketed by 43.2%, driven by weather risks, fraud, and reduced competition. Hurricanes and floods have made Florida one of the most expensive states for homeowners insurance, with six of the top ten priciest cities located there. Louisiana and coastal Texas face similar challenges due to their exposure to natural disasters.

The growing costs are creating affordability concerns for homeowners who may struggle to meet mortgage payments. As insurers grapple with rising claims from natural disasters, including record-setting billion-dollar weather events in 2023, other high-risk states could face similar rate increases. A lack of competition in Florida’s market, coupled with high litigation rates, further exacerbates the financial burden on homeowners, according to industry experts.