Homeowners insurance in Florida increased at double the national rate, report says

Florida homeowners insurance premiums surged 75% between 2021 and 2025, outpacing the national average increase of 38%, according to a report from the Coalition for an Insurable Future. The nonprofit group attributes the spike to escalating weather-related damages, including hurricanes, flooding, and wildfires, which climate change has intensified. Despite recent state reforms stabilizing parts of the market, the report warns premiums will remain high due to worsening extreme weather. The Coalition’s analysis highlights Florida’s premiums as the highest in the U.S. relative to household income, reaching 4.4% in 2024. Carlos Curbelo, a former Republican congressman and coalition member, noted that rising costs may offset potential property tax relief for homeowners. While broader economic factors like inflation and construction costs contribute to higher premiums, climate change poses the most persistent risk, according to Carolyn Kousky, the coalition’s executive director. Scientists link Florida’s rising insurance costs to climate-driven changes such as higher sea levels, increased storm surge, and more frequent extreme rainfall events like the 2022 Fort Lauderdale flood. Warmer ocean temperatures also contribute to stronger, faster-developing hurricanes. Kousky emphasized that climate risks require a fundamental shift in risk management strategies to mitigate long-term financial strain. Policymakers are exploring relief measures, but experts warn that without addressing climate-related risks, premiums could continue climbing. Senator Sheldon Whitehouse (D-RI) has warned that fossil fuel dependence exacerbates the crisis, pushing insurance costs to unsustainable levels for homeowners nationwide. The report underscores the need for proactive solutions to balance affordability with growing climate-related financial exposure.