Key points

• Insurers have sharply increased home and auto insurance premiums in Florida because of steep losses and rising costs in recent years. 
• Hurricane Ian, claim fraud, legal system abuse and inflation have been major contributing factors to the state’s insurance crisis.
• If you can’t find affordable coverage, try working with an independent insurance agent or broker. They may be able to present you with more options than you’ve found on your own.

Florida has plenty of appeal: Beaches are everywhere. The weather is warm. But every place has its trade-offs, and in Florida, insurance problems are as common as summer thunderstorms. In fact, the state’s exposure to extreme weather is partly to blame for the challenges of getting essential coverage for drivers and homeowners.

“This high frequency of powerful storms makes insuring homes in Florida particularly risky for insurers, as the potential for substantial payouts is far greater than in most other states,” said Suzette Torres, vice president of personal lines at XPT Specialty.

If your insurance carrier has dropped you and you don’t know what to do, it might not be your fault. Rather, you’ve been caught up in a statewide problem. Here are some steps you may be able to take to if you’re struggling to get home or auto insurance coverage as well as some context around the greater coverage issue facing Floridians.

What to do if you can’t get home insurance in Florida

If you’re struggling to find home insurance in Florida— or coverage you can afford — there are several possible solutions.

Home hardening

If your roof is over 15 years old, replacing it could make it easier to get more affordable homeowners insurance.

“Roof replacements and improvements are not only essential for insurability, but also play a critical role in reducing exposure to wind damage,” Torres said. “A common misconception is that the roof’s life expectancy aligns with insurance eligibility. However, many insurers mandate roof replacement much earlier than its expected lifespan.”

In Florida, insurers cannot deny coverage solely based on the age of your roof if it is less than 15 years old or is estimated to have at least five more years of use. However, updating your roof or hardening it can lead to cheaper home insurance.

Features such as impact-resistant windows, storm shutters and hurricane ties, straps or clips can also help with eligibility and premium discounts, Torres said. Your insurance agent can tell you more about state- and carrier-specific requirements and cost savings.

Expert’s Take

“I recommend checking out organizations like My Florida Safe Home program. It helps eligible homeowners by offering free wind mitigation and home inspections to better protect houses against Florida’s many weather risks. If you meet certain requirements, you may get a discount on your home insurance or qualify for grants from the Florida Department of Financial Services.”

– Kara McGinley, Deputy Editor of Insurance, USA TODAY Blueprint

Citizens Insurance

Homeowners who can’t get coverage in the private market can turn to Citizens Property Insurance Corp., the state’s insurer of last resort. It insured more than 1.1 million homeowners with multi-peril coverage in August 2024 and another 91,000 with windstorm-only coverage. 

As more homeowners insurance companies leave the state or stop issuing renewals, Citizens has become one of the largest property insurers in Florida by market share. 

Surplus lines

Citizens isn’t truly the only option: Florida homeowners can also turn to surplus lines insurance carriers. An independent insurance agent can help you find a homeowners insurance policy through a company that, while not admitted into the Florida property insurance market by state regulators, may be reputable and financially sound. 

You’ll need to verify the carrier’s financial strength and reputation independently, however, because you won’t have recourse to Florida’s state guaranty fund if an unadmitted insurance company becomes insolvent. 

Smart shopping

If you haven’t tried finding coverage through an independent agent or broker in the last few months, it’s worth trying again. These professionals can shop for policies from multiple insurance companies, helping you compare coverage and quotes in both the admitted and non-admitted markets.

Shopping for home insurance in Florida in 2024? The best home insurance companies in Florida

“Your goal should be getting the most robust policy for the best price,” said Mark Friedlander, spokesperson for the Insurance Information Institute (Triple-I).

You can re-shop your insurance any time. You don’t have to keep your existing policy for its full term. You can also try talking to several independent agents and brokers. You might get different information, perspectives and options from each one.

What to do if you can’t get auto insurance in Florida

If you can’t get auto insurance in the regular market, you may be eligible for a high-risk policy from the Florida Automobile Joint Underwriting Association. You’ll need to work with a Florida car insurance agent or broker to apply.

Before going that route, try shopping around with multiple companies — just make sure you use the same coverages and deductible amounts to get an apples-to-apples comparison. Some auto insurance companies are better for high-risk drivers than others.

Improving your credit score could also help you get lower insurance premiums in Florida since insurers use it when calculating your auto insurance rate. You’ll make the biggest impact by doing two things. 

1. Pay on time. Always make at least the minimum payment on time, and never more than 30 days late. 

2. Slash your credit utilization. Keep your balance as low as you can compared to your credit limit. Paying your balance in full before your statement is even issued will knock your utilization down to zero.

What to do if your insurance lapses

If you don’t pay your premiums, your insurance carrier has the right to cancel your policy.

“Some drivers unintentionally let their auto policy lapse because they forgot to pay the renewal bill,” Friedlander said. “It is illegal to drive without insurance in all states except New Hampshire.”

Even the most responsible person can find themselves in that situation when life gets chaotic.

“Insurers are required to give customers at least 10 days written notice of cancellation for nonpayment of premium, along with the reason for the cancellation,” Friedlander said.

The moment you realize you’ve missed your payment, contact your insurer and ask to be reinstated. This is your best chance at avoiding interrupted coverage and, at least for auto insurance, higher premiums.

“You most likely will not face a penalty for a lapse in home coverage,” Friedlander said.

However, if your home is mortgaged and you pay your premiums directly — not through an escrow account — your loan servicer can force place coverage if you let yours lapse. This coverage is typically more expensive and less comprehensive.

Unlike auto insurance, homeowners insurance is not required by law. However, an increasing number of homeowners without a mortgage have decided to take on the risk of a total loss themselves and forego homeowners insurance due to increased premiums — a choice experts say is a huge risk.

Why is it hard to get insurance in Florida?

Several factors spawned the insurance crisis in the Sunshine State.

Hurricanes

Insurers and homeowners were pummeled by Hurricane Ian — a slow-moving, Category 4 storm — in 2022 after taking major hits Irma (Category 3) in 2017 and Michael (Category 5) in 2018. 

Three consecutive years of La Niña and climate-change-related extreme weather events resulted in above-average insured losses in 2021 and 2022, according to Munich RE. Hurricane Ian was particularly devastating, accounting for about half of all insured losses globally.

Tropical cyclones, which hurricanes fall under the category of, are the costliest natural disasters. Scientists predict that while the total number of these storms may hold steady this century, more will be high-intensity Category 4 and 5 events, and more will come with extreme precipitation.

FEMA classifies every U.S. county by its level of natural risk. Most of Florida (and California — another state with a troubled insurance market) falls into the three riskiest categories. For example, the index says Miami-Dade county has a “very high” risk of hurricanes, riverine flooding and lightning. It also has a “relatively high” risk of wildfires, tornados and cold waves (as opposed to heat waves).

Frivolous lawsuits

In 2022, 71% of all U.S. homeowners insurance lawsuits were filed in Florida, according to the most recent data from the state’s Office of Insurance Regulation. This figure is vastly out of proportion with the state’s share of nationwide homeowners insurance claims, which was 15%. Legal system abuse and insurance fraud contributed to insurance companies going under, leaving the state or writing fewer policies.

The passage of Senate Bill 76 in 2021 correlates with a roughly 33% drop in the number of homeowners insurance lawsuits by 2022. Senate Bills 2A and 2D, enacted in 2022, created new laws meant to curb legal system abuses and enact consumer protection.

That said, while litigation reforms can make it harder to file and win frivolous insurance claims, they can also make it harder to pursue meritorious claims, writes Kenneth Klein, a professor at California Western School of Law, in 2023 Journal of Insurance Regulation article. Insurers have an incentive to offer consumers less than fair value for claims because insurers have more power. If it’s harder for consumers to sue, they may be more likely to get unfairly low claim payments.

Inflation

In Florida as elsewhere, inflation has also contributed to surging premiums. 

“As rebuilding expenses rise, insurers face higher potential claim payouts and must adjust premiums and policies accordingly,” Torres said. “In many cases, these financial pressures have led some insurers to withdraw from the Florida market altogether, reducing coverage options for homeowners.”

Insurance premium relief appears to be on the way, however. Average premiums in 2022 and 2023 were well below Triple-I’s projections. In 2024, inflation has slowed down.  

Also, more insurers have entered the Florida market, and existing insurance companies have been requesting low or no rate increases, according to the Florida Office of Insurance Regulation, which reviews and approves rate filings. Some have even filed for zero rate increases.