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FACT SHEET: Florida’s Home Insurance Crisis

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Last Updated: 8/18/25

Climate change is pushing property insurance companies to raise rates and cancel policies in Florida. Between 2019 and 2024, home insurance rates in the Sunshine State increased by 55%, and non-renewals increased by 280% between 2018 and 2023, making Florida the state with the highest statewide non-renewal rate. Insurers canceled at least 858,672 policies in Florida between 2021 and 2025. The increasing risk of hurricanes in the state is a major driver of Florida’s home insurance crisis. Trump’s disaster response cuts, alongside his far-reaching tariffs, will make Florida’s home insurance crisis even worse.

FLORIDA’S HOME INSURANCE RATES HAVE SOARED IN RECENT YEARS, AND COSTS CONTINUE TO GROW

• Between 2019 and 2024, home insurance rates in Florida increased by 55%, placing the state among the top 12 with the largest rate increases.
  • In 2024 alone, home insurance rates in Florida increased by 1.7%.
• Between 2021 and 2025, Florida policyholders experienced at least five rate hikes that impacted over 67,000. The largest rate hike was Castle Key’s 53.5% increase, which was implemented in 2024.   
• Floridians pay the most for home insurance, with an average yearly rate of $14,140 in 2024. In 2025, Florida was projected to see rate increases in 2025, with the average annual premium expected to increase by $1,320, or 9%.
• The Florida Office of Insurance Regulation released data showing that two-thirds of customers with state-regulated insurance saw increased premiums in 2025.
  • Miami and Fort Lauderdale homeowners face some of the highest premiums in the state, often exceeding $8,000 per year.

INSURERS ARE REFUSING TO RENEW HOMEOWNERS’ POLICIES OR ARE PULLING OUT OF FLORIDA’S INSURANCE MARKET ALTOGETHER

• Between 2021 and 2025, insurers canceled at least 858,672 policies in Florida, the highest amount of cancellations nationwide. 
• As of July 2025, an estimated 20% of homeowners in Florida did not have homeowners’ insurance.
  • Over 1 million homes in Florida are not insured, putting the state in the top ten highest uninsured states.
  • Of the countries’ most at-risk counties, Florida’s Miami-Dade County has the highest rate of uninsured homes at 23.5%.
  • Nationally, 14% of Latino homeowners and 11% of Black homeowners do not have home insurance, compared with 6% of white homeowners. 
  • As of 2020, Latino and Black people made up 26.5% and 14.5% of Florida’s population. 
  • Latinos are more likely to live in disaster-prone areas that are experiencing the steepest increases in insurance premiums. 
• Between 2018 and 2023, Florida’s non-renewal rate increased by 280%, the highest statewide non-renewal rate in the nation.
• In May 2021, three Florida-based insurers – Universal Insurance Co. of North America, Gulfstream Property & Casualty, and Southern Fidelity Insurance Co. – were approved to drop more than 50,000 policyholders weeks before the start of hurricane season.
  • Florida’s panhandle experienced three hurricanes during 2021, including Hurricane Elsa, which was responsible for 13 deaths and caused $1 billion in damage.
• In July 2023, Farmers Insurance stopped offering policies in Florida, impacting 100,000 customers. Farmers said the decision was necessary to manage their risk exposure from hurricanes.
• In January 2022, United Property and Casualty Insurance Co. announced it would stop writing new home insurance policies in Florida. One month later, Florida Farm Bureau Insurance announced it would also stop writing new home insurance policies in the state.
• In October 2023, Progressive sent 115,000 non-renewal notices to Florida policyholders. A year prior, the insurance company had already dropped 56,000 policyholders in the state.

CLIMATE CHANGE AND EXTREME WEATHER ARE DRIVING FLORIDA’S INSURANCE CRISIS

• By 2055, home insurance premiums were estimated to rise by 213% in the Tampa metro area due to hurricane risks.
• Hurricane risk in Florida is causing property values to fall, which could lead to increased scrutiny during underwriting and potential spikes in premiums.
• In response to catastrophic storms, hurricanes, and other risks, major insurers such as Farmers and AAA have withdrawn from Florida’s market, and an estimated 15 others have stopped issuing new policies.
  • The average annual homeowners’ insurance premium in Florida is close to $6,000, more than double the national average.
• In the aftermath of Hurricane Ian in 2022, insurers in Florida were accused of altering estimates, with documents reviewed by The Washington Post showing a dozen policyholders had their claims reduced by 45% to 97%.
  • After Hurricane Ian, Floridians filed more than half a million residential catastrophe claims, which led to five Florida property insurers going insolvent that year.
• In 2024, Florida’s Castle Key raised rates by 53.5% due to hurricane losses. 

TRUMP WILL MAKE FLORIDA’S INSURANCE CRISIS EVEN WORSE

• Trump’s tariffs were expected to increase home insurance costs in Florida by $464, the largest projected increase in the U.S.
  • Tariffs were expected to slow down disaster recovery efforts and make them more expensive. The National Association of Home Builders estimates a cost increase of $10,900 per home due to tariffs on construction materials.
• 22 staffers at NOAA’s Atlantic Oceanographic and Meteorological Lab (AOML), who worked on improving hurricane forecasting in Florida, were fired due to Trump’s cuts.
• The Trump administration planned to drastically cut HUD’s Office of Community Planning and Development, which paid to rebuild after natural disasters, including Hurricane Milton in Florida.
• In addition to staffing cuts, 11% of firefighting jobs in the Forest Service’s Pacific Southern region, which includes Florida, were unfilled as of July 2025.

• Trump’s cuts to disaster relief at the Department of Housing and Urban Development and attempts to disband FEMA would also increase the cost of home insurance.