Florida Property Insurance Spikes in 2023

Gayle Kurtzer-Meyers

Property insurance is getting out of hand.Photo byMonstera for.pexels.com

A steady increase in property insurance premiums

Are you noticing a steady increase in your property insurance premiums in Florida? Well, you're not alone. Florida property insurance has compelled house owners to worry about the consistent upward price trend. Did you know that Florida is now - in 2023 – on the top of the list regarding home insurance prices, and the insurance price of the property is increasing by 30% annually? If not, keep up with the article to know the latest and essential trends in Florida property insurance. I have brought you the quintessential update of 2023 about property insurance, and the cost of Florida property centered around why is the insurance of property rising drastically. So, let's find out how the high cost of Florida property insurance has shocked house owners in Florida.

Determining the rates in Florida

No doubt, Florida is the priciest state in terms of property. According to estimates by the trade group Insurance Information Institute, residents are paying, on average, $2,380 in premiums. Florida insurance is governed by specific and strict laws which regulate the insurance expense of the property. For instance, Florida real estate insurers are restricted to the rates and can't change them independently. Moreover, they can stay within the profit of 4.2% maximum and get proposed rate changes approved by Florida's insurance regulator. Whether you are a house or a business owner, the amount of money an insurance company charges to insure a particular property is determined by the estate's age, features and rebuilding costs, location, credit history, and coverage preferences. All of these impacts directly on your premiums.

Latest trends 2023

Let's have a closer and more in-depth look at the new trends in Florida insurance fees, which will help you formulate a notion about the insurance rates. The first thing to note is that the cost of property insurance will rise throughout the year. According to an estimate, the Citizens' property insurance expects to be increased by 12%; likewise, you will see an elevation of 13% for primary residences.

Florida homeowners are paying large amounts for property insurance.Photo byJulia Kuzenkov: for pexels.com

No relief in rates for homeowners

Florida housing insurers benefited from the state's insurance law passed in late December regarding fewer policies. However, there is no relief for the house owners as the policy count rose nearly 50% in 2022, giving us the final figure of 1.4 million by the end of the year.

A change in the law of claims

As per new law and order, now house owners are given one year to file a claim and approximately 1.5 years to reopen an existing one. This resolution is not only helping the real estate owners to acknowledge the declaration in only seven days, but also insurers are likely to respond faster.

Reining in the incentive to litigate

Gov. DeSantis admitted to signing a new measure to resolve the elimination of a provisioning issue that required property insurance companies to pay the attorney fees for homeowners who successfully prosecuted a claim against their insurers.

Reinsurance for Florida real estate Insurers

In May 2022, Florida Optional Reinsurance Assistance Program (FORA) evolved to provide additional support to stabilize the property insurance market. After the flood, it was unsighted that there would be lesser claims for insurance this year. So, Reinsurance to Assist Policyholders (RAP) has enabled the new insurance law to up to $1 billion of the state's unanticipated funds.

Now you have a brief idea that the price of property insurance is rising by 33% each year, which doesn't sound good, though, for the sake of the future of real estate in Florida.

Why are Florida homeowners' insurance prices on a steady incline?

Natural disasters such as flooding contribute to the high cost of property insurance.Photo byBilanol for istockphoto.com

Several factors push the property's insurance rate, including reinsurance, litigation costs, catastrophic claims, and inflation.

Reinsurance and catastrophic claims

Reinsurance is the paramount factor influencing the mounting charges for home insurance in Florida. Knowing that Florida is susceptible to catastrophes like storms, floods, and hurricanes, real estate owners are more attentive toward the reinsurance of their property. A steady increase in reinsurance rate of 25% to 45% was seen in January after the devastating flooding occurred. Moreover, according to the bill Florida Optional Reinsurance Program (FORA), property insurance rates also elevated by a considerable margin, leaving house owners in an unsafe zone.

Litigation cost

Before the law, F.S. sec 627.428 passed in December, Florida had relatively high-priced insurance litigation, due to which only 76% of home insurance lawsuits only 8% of homeowners claims resulting in lawyers' fees of 71%. For instance, Orleans Parish is facing an 82% increase in Citizens' homeowners' insurance prices for 2023. The $3,714 premium could easily exceed $6,700 this year.


In April 2022, insurance software company Value360 published research conducted on the skyrocketing prices of lumber used in the construction and repair of a house in Florida. The report said residential reconstruction costs in Florida elevated by 12.4% solely because of the increased price of lumber.

Impacts of the rising cost of property insurance in Florida

The year 2023 is going to be a challenging year for residential property owners. Insurance executives and industry analysts assumed that due to increasing premiums, most people are losing interest in claiming insurance for a home which is alarming for the real estate market of Florida. Information Institute has estimated that about 7% of national homeowners carry no property insurance, nearly half of Florida's average 13%.

While addressing a news press Chairperson of the Florida Legislative Black Caucus said, "When your insurance goes up $2,600, and your income does not change, we know that we're in a crisis". In addition, Tasha Carter, Florida's insurance consumer advocate, showed her worries about people losing their dream homes only because they cannot afford the skyrocketing insurance prices.

Reducing rates

So, if you are a home possessor and want to claim insurance at a reasonable price in 2023, here are some ways that you can adopt to reduce the home insurance rates in Florida.

  • You can ask your Florida residency insurers for a discounted price to reduce your premium
    as much as possible.
  • By raising your deductible, you can easily hike down the price of property insurance.
  • Another way to avoid buying insurance is to participate in campaigns such as
    My Safe Florida Home provides funds to improve the home's strength to withstand
    hurricanes better.
  • It's wise to contact multiple Florida real estate insurers. You can select the most appropriate
    and affordable by comparing their rates and services.

Final words

In conclusion, Florida property insurance is experiencing continuous upward price movement, a red flag for most house owners. As said by Insurance Information Institute spokesman Mark Friedlander "Rampant roofing fraud, runaway litigation and rising replacement costs of homes." Overall, the elevation in insurance rates has forced the property holder to 'go bare.' More and more people are losing interest in buying insurance for the security of their houses in a catastrophic-prone region like Florida, which needs to be appreciated. We are hearing the same appeal from everyone in Florida, "It is frustrating that we are paying more for less."

So, why pay more? In this chaotic situation, if you are a house owner in Florida, you can ensure a noticeable reduction in property insurance rates by taking wise measures. First, ensure your home is up to code and well-protected from natural disasters; consider increasing your deductible and shop around for insurance. Finally, don't let the shock of high premiums keep you from protecting your home and belongings.

This article is for informational purposes only. It should not be considered financial, insurance, real estate, or legal advice. The market fluctuates; therefore, not all information will remain the same. Consult an attorney before making significant decisions.

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I am a Licensed Community Association Manager for the State of Florida and a published author. My top articles are about Florida RE, property management, and the many beautiful venues and activities available in the Sunshine State. Thank you for reading my work and joining me on the journey.

Kissimmee, FL

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