Florida Homeowners Insurance Crisis: What Congress Must Do

Florida homeowners insurance has become one of the most urgent kitchen-table issues in our district. Average premiums have nearly quadrupled since 2019, topping $6,000–$8,000 per year — more than three times the national average of $1,700. Families are being forced to go uninsured, sell their homes, or rely on a state-backed insurer of last resort that is itself on the verge of insolvency. This is not a local problem. It is a congressional failure, and it requires a congressional fix.

Why Florida Homeowners Insurance Is So Expensive

Three structural forces have driven Florida homeowners insurance costs to their breaking point:

Hurricane exposure and reinsurance costs. Florida accounts for roughly 9% of U.S. homeowners insurance policies but nearly 80% of all homeowners insurance litigation. After major storms like Irma (2017) and Ian (2022), global reinsurers — the companies that insure the insurers — sharply raised their rates or exited the Florida market entirely. Those costs get passed directly to homeowners.

Litigation abuse. Florida has historically allowed assignment-of-benefits (AOB) fraud, where contractors sued insurers on homeowners’ behalf for inflated claims. One-way attorney fee provisions made Florida a playground for bad-faith litigation. While the state legislature made some reforms in 2022–2023, the damage to insurer confidence was already done.

Climate-driven risk repricing. As sea levels rise and hurricane seasons intensify, actuarial models are being revised upward across the board. This is not speculation — it is math, and the math no longer supports cheap coastal coverage without federal backstop support.

How Much Does Homeowners Insurance Cost in Florida Right Now?

The average Florida homeowners insurance premium is now approximately $6,000–$8,000 per year for a standard single-family home, compared to the national average of about $1,700. In coastal counties — including much of our district — rates are even higher, with some homeowners paying $12,000–$15,000 annually for modest homes.

According to the Florida Office of Insurance Regulation (FLOIR), at least seven private insurers became insolvent or voluntarily withdrew from Florida between 2021 and 2024. The result: hundreds of thousands of policyholders were involuntarily transferred to Citizens Property Insurance — Florida’s insurer of last resort — which now holds over 1.3 million policies, its highest level ever.

Why Insurance Companies Are Leaving Florida

The departures are not subtle. Among the major carriers that have reduced or eliminated Florida homeowners coverage in recent years:

• Farmers Insurance — announced complete withdrawal from Florida in 2023, affecting approximately 100,000 policies
• Bankers Insurance — stopped writing new policies
• Lexington Insurance (AIG subsidiary) — non-renewed thousands of Florida policies
• Safepoint Insurance — went insolvent in 2022
• Southern Fidelity — declared insolvent 2022
• Avatar Property & Casualty — insolvent 2022

Remaining private carriers have responded by drastically raising premiums, tightening underwriting criteria, and excluding wind and water coverage — the two perils most likely to affect Florida homeowners.

What Is Citizens Insurance and Why Is It a Problem?

Citizens Property Insurance Corporation is Florida’s state-backed insurer of last resort — created to cover homeowners who cannot obtain private insurance. It was never designed to be the primary insurer for over a million households.

Here’s why Citizens Insurance Florida’s growth is alarming: if a catastrophic hurricane strikes and Citizens cannot pay all its claims, Florida law requires a special assessment on every insurance policy in the state — not just property insurance, but auto, life, and commercial policies too. Every Florida insurance policyholder becomes a de facto backstop for Citizens’ losses. With 1.3 million+ policies and inadequate reinsurance, Citizens represents a systemic risk to the entire state economy.

What Congress Can Actually Do to Fix Florida’s Insurance Crisis

State-level reforms are necessary but not sufficient. The core problem — inadequate reinsurance capacity and a federal government that has no structured role in residential property insurance markets — can only be addressed in Washington. Here is what John Peters will fight for in Congress:

A federal residential reinsurance backstop. Congress has provided catastrophe reinsurance for flood (through the National Flood Insurance Program) but not for wind, fire, or other catastrophic perils. A federal backstop — similar to TRIA for terrorism risk — would give private insurers the certainty they need to stay in high-risk markets at affordable rates. Florida homeowners cannot wait for the private reinsurance market to find its equilibrium on its own.

NFIP reform and expansion. The National Flood Insurance Program is chronically underfunded, its rate maps are outdated, and its coverage limits have not kept pace with home values. John Peters supports comprehensive NFIP reform that modernizes flood maps, increases coverage limits, and incentivizes mitigation — reducing long-term payouts while giving Florida families real protection.

Federal support for wind mitigation. Every dollar spent on wind mitigation — impact windows, hurricane straps, reinforced roofs — saves six dollars in storm damage. Congress can create tax credits and low-interest loan programs to help Florida homeowners harden their homes. This reduces insurer risk, which reduces premiums.

Consumer protection standards. John Peters supports federal minimum standards for claim handling timelines and transparency requirements for insurers operating in catastrophe-prone states — so Florida families know what they’re buying and can hold insurers accountable when they fail to pay.

How to Lower Your Homeowners Insurance in Florida Today

While congressional action is the long-term solution, here are practical steps Florida homeowners can take right now to reduce their premiums:

• Get a wind mitigation inspection. A licensed inspector certifies your home’s hurricane-resistant features. This alone can reduce your wind premium by 20–40%.
• Install impact-resistant windows and doors. Qualifies for discounts under Florida’s Uniform Mitigation Verification Inspection form.
• Raise your hurricane deductible. Choosing a 5% hurricane deductible instead of 2% can meaningfully lower your annual premium — but make sure you have reserves to cover it.
• Shop surplus lines carriers. Lloyd’s of London and other surplus lines insurers can sometimes offer competitive rates for homes that standard carriers have declined. Work with an independent agent who has access to these markets.
• Ask about Citizens eligibility. If your private premium exceeds Citizens’ rate by 20% or more, you may qualify for Citizens coverage. Contact a licensed Florida agent to check eligibility.
• Bundle policies strategically. Auto + home bundles with remaining carriers (State Farm, USAA for eligible members, Universal Property) can yield meaningful discounts.