Florida Homeowners Insurance Guide: What to Know in 2024

Though the number of insurance carriers in the Sunshine State's insurance market has dwindled, many carriers are still available, and new companies are entering the marketplace regularly. Our guide outlines what Floridians need to know about homeowner's insurance in 2024.

Key Takeaways

• Many homeowners insurance companies are pulling out of Florida due to increasing losses, reinsurance costs, and litigation.
• Florida ranks number one in homeowners insurance costs in the nation.
• Understanding the coverage options available can help you save money and prevent non-covered losses.
• Many homeowners insurance coverages may not be mandatory, but they can be wise.
• Binding restrictions during hurricane season can make obtaining homeowners insurance difficult. 

What to Know About Florida’s Home Insurance Crisis

After decades of substantial natural disasters, including floods, hurricanes, tornadoes, and tropical storms, the profitability margins for home insurance companies in Florida are almost nonexistent. As a result, most insurers limit the coverage they provide in the state, increase premiums substantially, or pull out of the Florida insurance market altogether. 

Insurers who lack the resources to withstand the high risk of substantial losses in Florida rely on reinsurers, who act as insurance for the insurers. However, reinsurers also feel the same financial strains as insurance companies, battling inflation, labor and material shortages, and increasingly large natural disaster losses, making reinsurance coverage difficult and costly to obtain.

In addition, insurance fraud and legal system abuse have further impacted homeowners insurance costs in Florida. State legislators are working to provide bipartisan solutions to Florida's strained homeowners insurance marketplace. In the meantime, affordable homeowners insurance in Florida is hard to come by.  

Cost of Home Insurance in Florida

The average projected annual premium for homeowners insurance in Florida in 2024 is $11,759, compared to the national average premium of $2,522. Six of the ten most expensive cities for homeowners insurance are located in Florida, and the state has the highest average homeowners insurance premiums in the country.

Many Florida homeowners see insurance rates of $500 per month or more added to already high mortgage costs. As more insurance companies leave Florida, increased risk is placed on the remaining insurers, driving up costs for homeowners as devastating storms continue to pummel the state. 

With 59% of Florida residents stating that their personal finances were worse in 2023 than in 2022, the increasing cost of homeowners insurance in Florida is being felt by more and more families. 

Who Still Offers Home Insurance in Florida?

While many insurance companies are leaving the Florida homeowners insurance marketplace, several national insurance companies remain, including:

• State Farm
• Allstate
• Progressive*
• Chubb
• Liberty Mutual

National insurers who left the Florida homeowners insurance marketplace, are non-renewing policies, or are not writing new business include: 

• Farmers
• Progressive*
• AAA
• Many others

With rising rates and less competition, Florida homeowners should also consider smaller local insurance companies for insurance quotes. The Florida Office of Insurance Regulation has admitted several new insurers to Florida's insurance market in 2024, providing additional insurance options.

Ovation Home Insurance Exchange, Manatee Insurance Exchange, Condo Owners Reciprocal Exchange, Orange Insurance Exchange, Orion180 Select Insurance Company, Orion180 Insurance Company, Mainsail Insurance Company, and Tailrow Insurance Companies are all Florida homeowners insurance companies that are new to the state’s insurance market. 

*Progressive has non-renewed certain policies, mainly DP3 and other high-risk policies, but still offers insurance to many Florida homeowners.

Citizens Property Insurance

Citizens Property Insurance Corporation is a state-run insurance company available as a last resort to Florida homeowners who couldn't get insurance elsewhere due to previous insurance claims, having an older home, or other eligibility issues. 

With fewer insurance companies and stricter underwriting standards, Citizens is now the largest insurer in the state. As a result, Citizens is struggling under the weight of losses from hurricanes Ian, Sally, and Eta, and not all homeowners are eligible for coverage. 

Florida Homeowners Insurance Coverage Options

Homeowners insurance needs differ for every Floridian, depending on their home, assets at risk, and location. Knowing the available coverages and how they apply to your unique situation can help you make the most informed coverage decisions.

Standard Home Coverage

Most homeowners insurance providers offer several basic homeowners insurance coverages as part of their standard policy, although coverage limits will vary.

• Dwelling Coverage: Dwelling coverage is the physical damage coverage for your main home structure. Extended Dwelling or Other Structures coverage includes coverage for detached garages, outbuildings, fences, and more. 
• Personal Property Coverage: This coverage is exactly what it sounds like. Your personal items are covered for qualifying losses up to the coverage limits. Special limits or exclusions may apply for items like jewelry, furs, and collectibles. 
• Liability Coverage: If you are held legally liable for medical payment for injuries or other suits related to your premises, liability coverage is crucial. 
• Additional Living Expenses Coverage: ALE coverage helps with costs incurred from living away from your home while it's repaired from a qualifying claim. 

The coverages above will either be on an all-peril or named-peril policy. An all-peril policy means all causes of loss are covered unless expressly excluded. A named-peril policy includes only the causes of losses listed. 

Some coverage may apply on a replacement cost basis. In this case, claims are paid based on the current cost of repair or replacement. Other coverages may apply on an actual cash value basis, the cost to repair or replacement minus depreciation for age and wear or tear.

The type of coverage you have can significantly impact your premiums, so be sure to understand how your coverages work so you know what you expect.

Hurricane and Wind Coverage

Hurricane coverage is provided as an endorsement on a standard homeowners insurance policy with its own separate hurricane deductible, usually higher than a standard homeowners insurance deductible. 

The state of Florida does not require hurricane damage coverage, but it may be required by your mortgage lender. In Florida, where hurricanes happen regularly, you should carefully consider hurricane coverage. 

Although hurricane winds are often destructive, not all wind damage comes from hurricanes. You'll need windstorm coverage to protect your home against other sources of wind damage. 

A 2024 Florida statute requires property insurance policies to provide windstorm coverage, but some exceptions exist. Florida homeowners can choose to purchase separate wind-only coverage from another insurer.

You might get a discount on wind coverage if you take wind mitigation measures, such as installing storm shutters, hurricane straps, and wind-resistant doors and windows. 

Flood Insurance

Flooding from rising water causes some of the most widespread damage to Florida communities. Because of this, insurance companies can't provide flood insurance coverage at a reasonable cost. 

FEMA's National Flood Insurance Program (NFIP) and private flood insurance options were created to fill this coverage gap, but they often operate at a loss.

Sinkhole Coverage

Because of its geological makeup, Florida ranks number one in the U.S. for sinkholes. A sinkhole, as defined by Florida law, is a "landform created by subsidence of soil, sediment or rack as underlying strata are dissolved by groundwater." 

Sinkhole coverage is often offered as an endorsement to an existing homeowners policy, but it is not required. Homes may have to be inspected for existing damage before the endorsement is added. 

How to Choose the Best Florida Homeowners Insurance Company

Shopping for a homeowners insurance company can be overwhelming for anyone, but it's especially difficult for Florida homeowners because of the limited home insurance policies and high rates. 

Choosing the best Florida homeowners insurance company involves researching the insurers available in your area, the types of coverages you want and whether they are available, discounts offered, the claims process, and customer satisfaction ratings. 

Although you may want to go with the cheapest homeowners insurance in Florida, house insurance isn’t something you want to skimp out on. You need to weigh the cost of the premium to the value of the coverage. Sometimes the best homeowners insurance in Florida might cost a bit more, but it can pay off in the end if you need to make claim. 

Comparing multiple insurers for rates, coverage, and services will help you find the right Florida homeowners insurance company for your needs. You can usually gather free Florida home insurance quotes to make comparing homeowners insurance rates easier.   

How to Get Cheaper Homeowners Insurance in Florida

Although the homeowners insurance marketplace in Florida can be challenging, there are ways to save money on your home insurance in Florida.

• Compare rates (Consider using an insurance broker to help)
• Utilize hurricane-proofing measures for discount opportunities
• Maintain good credit
• Bundle policies
• Ask about home security system discount
• Consider raising your deductible
• Review coverages regularly

When shopping for home insurance rates, consider your entire insurance portfolio and ensure your coverage matches your risk. Take the time to speak to an insurance agent and review your options carefully.

FAQ: Florida Homeowners Insurance

Do you need homeowners insurance in Florida?

Homeowners insurance is most likely required by your mortgage lender, though not by the state. Your home is one of your biggest investments, and protecting it makes good financial sense. This is especially true in Florida, which regularly experiences extreme weather. Renters may also want to consider liability and personal property coverage protection. 

What is the Florida Hurricane Catastrophe Fund (FHCF)?

In an effort to reduce home insurance rates for policyholders in Florida, the Hurricane Catastrophe Fund (FHCF), a tax-exempt state trust fund, was created to reimburse insurance companies for a portion of their losses after major hurricanes. 

Do I need flood insurance in Florida?

Florida has more flood policies provided by the NFIP than any other state. Due to its flat terrain and geologic terrain, water has difficulty draining, often leading to catastrophic losses to property. Flood insurance may be required by your mortgage lender. Even if it’s not required, flood insurance is worth looking into to protect your most valuable assets from flood damage.

Can I switch my insurance provider during hurricane season?

Many Florida home insurance companies place binding restrictions, meaning they do not write new policies during hurricane season or when a hurricane is imminent.

Article written by Shawnette Good. 

Shawnette is an insurance professional with 30 years of industry experience helping consumers understand complex insurance topics. Outside of writing, Shawnette enjoys long nature walks and volunteering in her community.