Property insurance rates for Floridians are high and seem to keep rising. In fact, Florida homeowners pay nearly three times the national average according to a recent analysis by the Insurance Information Institute. In other words, Florida homeowners are paying an average premium of $4,231 for insurance, compared to the U.S. average of $1,544. Needless to say, in addition to many homeowners being forced to shop around for their insurance needs, many are also being forced to reassess their coverage needs. In many cases, these customers are opting to reduce their levels of coverage in order to find a premium that is palatable.
In extreme cases, insurance premiums combined with high home prices and an overall cost of living is driving some Floridians to relocate to less expensive parts of the state. Below, we share some of the most expensive and least expensive counties in The Sunshine State from a property insurance perspective.
10 highest priced Florida counties
- 1. Monroe County: $7,162 (single-family homes)
- 2. Miami-Dade County: $5,391
- 3. Palm Beach County: $5,247
- 4. Broward County: $5,164
- 5. Martin County: $4,756
- 6. Walton County: $4,337
- 7. Franklin County: $4,267
- 8. Collier County: $4,230
- 9. Indian River County: $3,386
- 10. Gulf County: $3,020
10 lowest priced Florida counties
- Sumter: $1,533 (single-family homes)
- Baker: $1,694
- Marion: $1,730
- Hernando: $1,767
- Lake: $1,859
- Wakulla: $1,870
- Gilchrist: $1,874
- Citrus: $1,876
- Alachua: $1,877
- Columbia: $1,885
Of course, when most people think about property insurance in the state of Florida they immediately think about hurricanes and the destruction they leave behind. While this is certainly a significant challenge, the high prevalence of insurance-related lawsuits is also to blame. In fact, the state of Florida had 6.91% of all insurance claims last year, however approximately three out of four property insurance lawsuits (76%) were in Florida. Needless to say, the high expenses as a result of these lawsuits is simply being passed along to policyholders across the state in the form of higher premiums. Fortunately, Senate Bill 2A, passed in December 2022 and signed by Governor Ron DeSantis, will impact two high-cost areas of concern:
- One-way attorney fees: This allows a plaintiff (the policyholder) to recover attorney fees, but not the defendant (the insurer). The practice incentivized unwarranted litigation.
- Assignment of benefits (AOB): This allows homeowners who suffered a loss to assign their insurance benefits to a contractor that then deals directly with the insurance company. Ultimately, this also led to more lawsuits.
Are you looking to buy or sell real estate in South Florida? If so, be sure to contact Natasha at Live South Florida Realty, Inc. today! Also, don’t forget to download the free Florida Home Search app for your mobile device. This best-in-class app will give you access to the South Florida MLS right on your smartphone or tablet.