How Much Is Homeowners Insurance in Florida 2026?
Florida homeowners insurance averages $5,376 per year for $300,000 dwelling coverage—nearly 2.5 times the national average of $2,181. Volusia County ranges from $1,700-$3,500 depending on location. Coastal South Florida exceeds $7,000-$8,000+. The market is stabilizing after years of crisis, with 73 rate decrease filings since late 2025.
If you're considering a move to Florida from the Northeast, Midwest, or anywhere else, you need to understand this before you fall in love with a beachside property: Florida has the most expensive homeowners insurance in the United States.
This isn't meant to scare you off. It's meant to prepare you. I've watched too many buyers get blindsided by insurance costs after they've already committed to a purchase—sometimes discovering their annual premium will be $8,000, $10,000, or even higher when they expected something closer to what they paid up north.
The good news? After years of crisis, Florida's insurance market is finally stabilizing. Understanding how we got here—and what's changing—will help you make smarter decisions about where and what to buy.
Why Is Florida Homeowners Insurance So Expensive?
Florida insurance costs are driven by: (1) Hurricane losses exceeding $50 billion from 2017-2023, (2) Litigation abuse where Florida had 79% of US homeowners lawsuits with only 9% of claims, and (3) Insurer insolvency with 11+ companies going bankrupt since 2017. Legislative reforms in 2022-2023 are now addressing these root causes.
Hurricane Losses
Between 2017 and 2023, Florida suffered over $50 billion in insured losses from catastrophic events. Hurricane Ian alone in 2022 caused $113 billion in total damage. These massive payouts depleted insurer reserves and pushed many companies toward insolvency.
Litigation Abuse
This is the factor most out-of-state buyers don't know about. At one point, Florida accounted for just 9% of all U.S. homeowners insurance claims but 79% of all homeowners insurance lawsuits. Attorneys and contractors exploited "Assignment of Benefits" agreements, often inflating claims and triggering expensive litigation. Between 2013 and 2020, Florida insurers paid out $15 billion in claims costs—and nearly three-quarters went to attorneys, not homeowners.
Insurer Exodus and Insolvency
The combination of hurricane losses and litigation costs made Florida unprofitable. Since 2017, eleven Florida insurance companies went bankrupt and liquidated. Six insurers became insolvent in 2022 alone.
Farmers Insurance (stopped new policies 2023), State Farm (stopped new policies), Allstate (reduced by 20%), AAA (limiting risk), Bankers Insurance, AIG/Lexington Insurance, Progressive (scaled back), and others. Over 30 insurers have either pulled out, limited coverage, or gone insolvent in recent years.
Is the Florida Insurance Crisis Getting Better in 2026?
Since Hurricanes Helene and Milton (late 2025), Florida insurers have filed for 73 rate decreases and 94 zero-percent increases. Citizens Property Insurance is filing for its first rate decrease since 2015 (2.6% average). 17+ new carriers have entered Florida since 2023 reforms. 2024 was the first profitable year for Florida domestic insurers since 2016.
Florida's legislature passed major reforms in 2022 and 2023 that are genuinely working:
- Eliminated one-way attorney fees in certain insurance lawsuits, removing a key driver of frivolous litigation
- Restricted Assignment of Benefits abuse that allowed contractors to sue insurers directly
- Tightened claims timelines to reduce drawn-out legal battles
- Required new carriers to hold at least $35 million in reserves beyond policy obligations
Market Recovery Signs (January 2026)
- 17+ new insurers have entered or re-entered Florida since the 2023 reforms
- Citizens Property Insurance filing its first rate decrease since 2015
- Citizens' policy count dropped from peak of 1.4 million to around 385,000 (healthier private market)
- 2024 was the first year since 2016 that Florida's domestic property insurers turned a collective profit
You're entering a stabilizing market. Premiums are still high compared to other states, but the era of 30-40% annual increases appears to be ending. Some carriers are actually reducing rates for the first time in years.
Florida Homeowners Insurance Rates by Location (2026)
Insurance costs vary dramatically based on where you buy in Florida:
| Location | Avg. Annual Premium | Notes |
|---|---|---|
| Monroe County (Keys) | $7,162 | Highest risk, barrier islands |
| Fort Lauderdale | $8,347 | Coastal, high property values |
| Miami-Dade County | $5,095 - $7,000+ | High density, coastal exposure |
| Tampa/St. Petersburg | $3,500 - $5,000 | Moderate coastal risk |
| Volusia County | $1,700 - $3,500 | Varies by proximity to coast |
| Orlando (inland) | $2,510 | Lower hurricane exposure |
| Tallahassee | $1,740 - $2,950 | Lowest rates in state |
These are averages for $300,000 dwelling coverage. Your actual premium depends on your home's age, roof condition, construction type, flood zone, and distance from the coast.
Does Florida Homeowners Insurance Cover Flood Damage?
Standard Florida homeowners insurance does NOT cover flood damage. Flood insurance is a separate policy through NFIP or private carriers. If your home is in a high-risk flood zone (AE or VE) with a federally-backed mortgage, flood insurance is required. Budget for BOTH homeowners + flood insurance for your true "hazard cost."
Florida Flood Insurance Costs by Zone
| Flood Zone | Annual Cost | Required? | Monthly Impact |
|---|---|---|---|
| Zone X (minimal risk) | $500 - $850 | Not required, but smart | $42-$71/month |
| Zone X Shaded (moderate) | ~$1,400 | May be required | ~$117/month |
| Zone AE (high risk) | $2,400 - $3,200+ | Yes, if mortgaged | $200-$267+/month |
| Zone VE (coastal high hazard) | $5,800 - $8,500+ | Yes, if mortgaged | $483-$708+/month |
Recommendation: Focus your search on Zone X properties in Port Orange, Edgewater, or Daytona Beach mainland. The $2,500-$7,000+/year savings versus Zone AE/VE properties gives you significantly more buying power.
What Is a Hurricane Deductible in Florida?
Florida policies have a separate hurricane deductible, typically 2% of dwelling coverage. For a $300,000 home, that's $6,000 you pay out-of-pocket before insurance covers hurricane damage. Florida hurricane deductibles are per-season, not per-storm—you only pay once even if multiple hurricanes hit in the same year.
7 Ways to Lower Your Florida Homeowners Insurance
You have more control over your insurance costs than you might think:
1. Get a Wind Mitigation Inspection ($75-$150)
Florida law requires insurers to offer discounts for homes with hurricane-resistant features. A wind mitigation inspection documents your home's protective features: roof shape, roof-to-wall connections, opening protection. Discounts can save $500-$2,000+ annually.
2. Buy a Home with a New Roof
Roof age is one of the biggest factors in Florida premiums. Homes with roofs older than 15-20 years are increasingly difficult to insure at all. A new roof can dramatically reduce your premium—and some carriers won't write a policy without one.
3. Apply for My Safe Florida Home Grants (Up to $10,000)
The state offers matching grants up to $10,000 for hurricane-resistant upgrades like impact windows, reinforced garage doors, and roof improvements. These upgrades reduce your risk AND your premium. The program was renewed with $280 million in the 2025-26 budget.
4. Shop Multiple Carriers
Rates vary dramatically between insurers—sometimes by 50% or more for identical coverage. With 17+ new carriers in the market, you have more options than a year ago. Use an independent insurance agent who can quote multiple companies.
5. Consider Flood Zone When Buying
Two homes a quarter-mile apart can be in completely different flood zones with dramatically different insurance costs. Understanding this before you make an offer can save you thousands annually.
6. Bundle Policies (10-25% Savings)
Multi-policy discounts for combining home and auto insurance typically range from 10-25% in Florida.
7. Maintain Good Credit
Florida insurers use credit-based insurance scores. Homeowners with poor credit pay approximately 47% more than those with good credit—a difference of over $1,200 annually.
Why This Matters for Your Purchase Decision
Insurance isn't just a line item—it fundamentally affects what you can afford. A home with a $4,000 annual premium versus one with an $8,000 premium costs you an extra $333 per month, forever. Over 10 years, that's $40,000.
Before you fall in love with a property, you need to know:
- What flood zone is it in?
- How old is the roof?
- What wind mitigation features does it have?
- What are comparable properties actually paying for insurance?
This is exactly why I developed the Kirkland Coastal Assessment Protocol (KCAP). Every buyer I work with gets a complete picture of their true ownership costs—including realistic insurance projections—before they make an offer.
Bottom Line: Florida homeowners insurance averages $5,376/year (2.5x national average), but the market is stabilizing after 2022-2023 reforms. Volusia County offers better rates ($1,700-$3,500) than South Florida. Always get insurance quotes BEFORE making offers, and focus on Zone X properties with newer roofs for the lowest premiums.
Sources: Florida Office of Insurance Regulation (FLOIR), Insurance Information Institute, Florida Realtors, Insurance Journal, Florida Insurance Guaranty Association. Data current as of January 2026. Insurance rates change frequently; always obtain quotes from licensed carriers for current pricing.