Florida's Soaring Insurance Leaves Residents Fearing for Their Homes

Florida homeowners are struggling to keep up with the state's skyrocketing insurance premiums and worry they will lose their homes, according to recent reports.

Ellen Fincher, a resident of Vero Beach, told WPTV that she fears losing the home she's been living in for the last 10 years because she's unable to afford her current insurance premium at $13,000. "I can't, not when you're on a fixed income," she told the West Palm Beach television channel. "Every day I get up and think, 'Well, do I start packing?" she said.

Residents of the Sunshine State are currently paying the highest home insurance premiums in the country. According to data from the Insurance Information Institute (Triple I), the average insurance premium for Florida homeowners in 2023 was $6,000 per year, a 42 percent increase compared to 2022.

The surge in premiums is due to a combination of factors, including excessive litigation in the state, the increased risk posed by climate change and the exodus of several major insurers in the past couple of years. Many companies left because of the increased risk of devastating weather events—like hurricanes and flooding—which scientists expect to become more frequent and more severe with global warming. These, in turn, are likely to send damage claims shooting up.

Senior citizens are among the ones struggling the most with higher insurance premiums, as many are on fixed income or Social Security and they often live in older properties, which might be in need of expensive maintenance work.

Richard C., a resident of Palm Beach County who asked for his last name to remain anonymous, told Newsweek that "the insurance situation in Florida is untenable."

"After taking three years to settle a roof claim, our insurance company has been raising rates astronomically," he said.

"In 2023, our home, valued at $470,000, cost $5,400 to insure. We just got the renewal for 2024 and the rate has gone up to $7,000. This includes a 2 percent deductible for hurricane damage," he added. "They have denied a recent claim for a water leak in our home, which will now cost over $5,000 out of pocket to fix."

According to Richard, the ongoing insurance crisis in Florida will drive many thousands of Floridians out of the state. "We are seniors and these kinds of increases will force us to make choices between insurance and daily living costs," he said.

Are you a Florida resident fearing to lose your home because you cannot afford higher insurance premiums? Tell us your story by contacting g.carbonaro@newsweek.com