Homeowners insurance in Florida increased at double the national rate, report says
Florida homeowners insurance premiums surged 75% between 2021 and 2025, nearly double the national 38% increase, according to the Coalition for an Insurable Future, citing climate-driven extreme weather and litigation as key factors. The state now has the highest insurance premiums as a share of household income at 4.4%, with policymakers struggling to balance reforms amid rising claims from hurricanes, flooding, and wildfires intensified by climate change.
Florida homeowners insurance premiums rose 75% from 2021 to 2025, outpacing the national average increase of 38%, according to a report by the Coalition for an Insurable Future. The report highlights climate change as a primary driver, with extreme weather events—such as hurricanes, flooding, and wildfires—becoming more frequent and costly. Florida experienced six hurricanes between 2022 and 2024, including Hurricane Ian in 2022, which caused an estimated $60 billion in insurance losses, the largest in U.S. history. While recent state reforms have stabilized parts of the market, the report projects continued premium hikes due to climate-related risks. Florida’s premiums now consume 4.4% of mean household income, the highest share in the U.S., according to the study. Carlos Curbelo, a former Republican congressman and coalition member, warned that rising costs may offset potential property tax relief, leaving homeowners financially strained. The Coalition’s executive director, Carolyn Kousky, attributed broader economic pressures—such as post-COVID inflation, labor shortages, and rising construction costs—to national premium increases. However, she emphasized climate change as the most persistent threat, noting that sea-level rise, extreme downpours, and intensified hurricanes are worsening insurable risks. Scientists confirm that warmer oceans and air contribute to more destructive storms, though the exact impact on hurricane frequency remains under study. Senator Sheldon Whitehouse (D-RI) has criticized fossil fuel dependence for exacerbating insurance crises, stating that premiums have doubled or tripled in recent years, forcing some homeowners to lose coverage entirely. The coalition argues that Florida’s market instability stems from both climate-driven claims and litigation, though reforms have partially mitigated the latter. Without further intervention, the report suggests premiums will remain unsustainably high, disproportionately affecting vulnerable households.
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