Florida Property Insurance Premiums Average $4,500 as Market Contracts

The average homeowners insurance premium in Florida reached $4,500 annually as of January 2026, according to data compiled by the Insurance Information Institute. That figure is roughly triple the national average of $1,540 and up 18% from the $3,800 reported in 2025. A dozen smaller carriers have either exited the state, been declared insolvent, or stopped writing new policies over the past 18 months.

Florida's property insurance market has been strained by repeated hurricane losses, rising reinsurance costs, and litigation expenses that insurers say remain structurally elevated despite 2022 tort reforms. Citizens Property Insurance Corporation, the state-backed insurer of last resort, reported 1.18 million policies in force as of March, down from a peak of 1.41 million in 2024 after a depopulation effort moved homeowners to private carriers.

"Our loss ratios on Florida business have improved, but reinsurance pricing has not come down fast enough to restore margins," said Barry Gilway, former CEO of Citizens, in testimony before the state legislature in Tallahassee last month. Gilway, now a consultant, said private carriers would need three consecutive claim-free seasons to regain confidence in expanding Florida exposure.

Farmers Insurance paused new homeowners policies in Florida in February, joining AAA, AIG Private Client Group, and Bankers Insurance in restricting market share. State Farm continues to write business but has implemented stricter underwriting criteria for homes more than 15 miles from the coast. Travelers reported a 2.8% drop in Florida policy count during its January earnings call.

Coastal counties bear the sharpest burden. In Monroe County, home to the Florida Keys, the average homeowner premium stands at $7,800, according to the Office of Insurance Regulation. Miami-Dade County averages $6,300, and Palm Beach County $5,100. Pinellas County homeowners, primarily around St. Petersburg, pay an average $4,900.

The National Association of Realtors reported that roughly 14% of Florida residential transactions in the first quarter involved an insurance-related contingency renegotiation, compared with 6% nationally. Some buyers are walking away after receiving final insurance quotes that exceed early estimates by 30% or more, said Nikki Field, a senior global real estate advisor at Sotheby's International Realty.

Governor Ron DeSantis's office in March proposed legislation to expand the state's hurricane mitigation grant program and tighten oversight of claims adjusters. The Florida Chamber of Commerce backed the package but warned that sustained relief would require multi-year federal flood reinsurance reform that is currently stalled in Congress.