Florida Suffering from Staggering Increases in Homeowner’s Insurance Rates

homeowners insurance rates

Each year, the National Association of Insurance Commissioners (NAIC) releases statistics on average homeowners insurance rates from the previous two years. In its latest “2011 Homeowners Insurance Report,” the NAIC reveal surprising changes to the average home insurance rates across the nation.

Florida Has Highest Homeowners Insurance Rates

The state of Florida has gained an unfortunate distinction this year, surpassing Texas as the state with the highest homeowners insurance rates in the nation. With average premiums nearly double that of the national average, Floridians are baffled.

In response to the news, CBS Miami contests that “Florida hasn’t seen a hurricane since 2005.” But the National Association of Insurance Commissioners report notes that the 10 costliest natural catastrophes in U.S. history have included five hurricanes — Andrew, Charley, Wilma, Ivan and Katrina — all of which devastated the state of Florida.

The Gulf States in general suffer from the highest home insurance premiums, being prone to hurricanes and strong storms that come ashore from warm tropical waters. Premiums in other gulf states, however, showed very mild increases by comparison.

Home Insurance Premiums in Florida Cost More

KWTX.com, a local Waco, Tex. news station, reports that the three following states pay the highest average premiums:

  • Florida: $1,933
  • Louisiana: $1,672
  • Texas: $1,578

By contrast, the national average for homeowners insurance rates is just $978 per year.

Florida home insurance has risen at a staggering pace. Last year’s report reveals that Florida has suffered much sharper increase than other states, as Florida experienced a 25.19 percent increase in just one year, compared to increases in Louisiana (2.07 percent) and Texas (1.15 percent). The national average for homeowners insurance rates only rose by 7.59 percent).

What’s driving Florida home insurance rates at such a high pace is unclear. Jeff Atwater, Florida’s Chief Financial Officer, has asked the state’s insurance regulators to offer a detailed report explaining the exponential increase.