The Crisis of Florida Homeowners Insurance

---

Florida Homeowners Insurance: What You Need to Know in 2025

Florida homeowners insurance is more than just a requirement—it’s your financial safety net. If you’re buying a home in Florida, you need to understand why insurance costs are rising, which companies still offer coverage, and how to get the best deal while protecting your biggest investment.

In this guide, we’ll break down the 2025 updates on Florida homeowners insurance, explain why it’s getting more expensive, help you find the right coverage, and show how Gustan Cho Associates can help you get a mortgage with confidence.

Why Is Florida Homeowners Insurance So Important?

If you own a home in Florida or are considering buying one, insurance is a must. With hurricanes, floods, and rising repair costs, it’s seriously crucial. Plus, if you want a mortgage, the bank won’t say yes unless your home is properly insured. If something unexpected happens—like a storm or a fire—you’re going to want that coverage.

Florida homeowners insurance protects your house and belongings and even covers legal fees if someone gets hurt on your property. With changes coming in 2025, it’s more important than ever to have the right policy.

What’s Happening With Florida Homeowners Insurance in 2025?

Florida homeowners insurance is in crisis. Many insurance companies have left the market or gone out of business recently, and those still in business have raised their rates significantly, often by double digits. Several reasons contribute to this problem. First, the cost of hurricane damage has increased significantly, making claims more expensive. Lawsuits and fraudulent claims have also raised legal costs for insurers.

Hurricane Ian caused further instability in the insurance market, with record numbers of homeowners looking to last-resort insurer Citizens. In June of 2022, insurance provider Southern Fidelity went bankrupt and was liquidated. Soon after, in August, Weston Property & Casualty Insurance of Coral Cables also closed its doors and canceled all policies.

Additionally, reinsurance, which is insurance for insurance companies, has become pricier. Inflation has also caused construction costs to rise. As of 2025, Citizens Property Insurance—Florida’s state-run backup insurer—covers more than 1.3 million homes. This shows that many private insurers have pulled out of the market, greatly reducing homeowners’ options.

Which Insurance Companies Still Offer Coverage in Florida?

Many big national insurers like Farmers and Allstate have reduced or stopped writing new Florida homeowners insurance policies. But some companies still serve the state. As of 2025, here are a few options:

• State Farm (largest in Florida)
• Universal Property & Casualty
• Citizens Property Insurance Corporation (state-backed)
• Security First
• Tower Hill Insurance

Each insurer has its own rules, prices, and limits. Some may only cover certain zip codes or types of homes. That’s why it’s smart to work with a mortgage expert who understands which insurers will approve your property type.

What Does Florida Homeowners Insurance Cover?

Standard Florida homeowners insurance usually includes:

• Dwelling coverage: Fixes or reconstructs your house following damage (due to wind, fire, etc.).
• Other structures: Sheds, garages, and fences
• Personal property: Furniture, electronics, clothing
• Liability protection: Covers medical and legal expenses if someone gets hurt while on your property.
• Loss of use: Covers the cost of a hotel or rental if your residence becomes uninhabitable following a covered incident.

Important: Most basic policies do NOT include flood insurance. You’ll need to buy a separate flood policy, especially if you’re in a high-risk zone.

How Much Does Florida Homeowners Insurance Cost in 2025?

The average annual cost of Florida homeowners insurance in 2025 is about $2,850 per year or $237 per month, which is nearly 60% higher than the national average.

Homeowners insurance rates can change based on several factors. These include the age of your house, its location, the type of roof and materials used, and your credit score. Living in a flood or wind zone can also make a difference in what you pay. Some people are getting quotes over $5,000 a year, which shows how important it is to compare prices and shop smart when looking for insurance.

Why Are Insurance Companies Dropping Policies in Florida?

Insurance companies are looking to cut down on their risks. Here’s why they’re dropping policies or pulling out of the state:

• Too many claims in high-risk areas
• Litigation abuse by contractors and legal teams
• New state laws are making it easier to deny claims or require arbitration
• Financial instability of smaller insurers

As a result, Florida homeowners are often left scrambling to find coverage, sometimes with just 30 days’ notice.

What Are Your Options if Dropped by an Insurer?

If your Florida homeowners insurance gets canceled, don’t panic. You can:

1. Contact your agent and ask why you were dropped.
2. Shop for a new policy through other private carriers.
3. Use Citizens Insurance as a last resort.
4. Work with a mortgage broker like Gustan Cho Associates. They can connect you with lenders and insurers who understand your situation.

How to Get the Best Deal on Florida Homeowners Insurance

Here are ways to lower your costs and stay protected:

• Raise your deductible: Choose a higher out-of-pocket cost to reduce monthly premiums
• Bundle policies: Bundle your auto and home insurance to receive a discount.
• Add home security: Alarms, cameras, and storm shutters may qualify you for savings
• Ask for discounts: Claims-free, senior, or professional association discounts might apply
• Maintain good credit: A higher credit score often means lower insurance costs

Also, review your coverage annually and adjust it based on changes to your home or neighborhood.

Florida Homeowners Insurance and Your Mortgage Approval

If you’re getting a mortgage, your lender will need you to have Florida homeowners insurance sorted out before you can close the deal. They want to make sure your property is covered in case something goes wrong. Without proof of insurance, you won’t be able to get your loan.

At Gustan Cho Associates, we work with buyers across Florida to:

• Recommend insurance partners who still serve your zip code
• Help calculate monthly escrow costs for insurance and taxes
• Make sure your insurance meets lender requirements
• Get you to the closing table fast

We understand how challenging the insurance market is in Florida. That’s why we go beyond just finding a loan—we help you protect your investment.

What to Do if You’re a First-Time Homebuyer in Florida

Buying your first home? Here are quick tips to make Florida homeowners insurance easier:

• Start shopping for insurance as soon as you go under contract
• Get 3 to 5 quotes and compare coverage, not just price
• Work with an agent who understands Florida’s risk zones
• Ask about wind mitigation inspections—they can reduce premiums
• Partner with Gustan Cho Associates to walk you through the process

Florida Homeowners Insurance in 2025: What’s Next?

Lawmakers are working to fix the crisis, but progress is slow. More companies may leave in 2025. Premiums are expected to rise another 8% to 12%, especially after a busy hurricane season in 2024. That means smart planning and expert guidance are more important than ever.

As a Florida homebuyer, you need to work with professionals who understand the full picture: lending, insurance, risk zones, and your financial goals. That’s where Gustan Cho Associates comes in.

Get Pre-Approved with Gustan Cho Associates

We help homebuyers in Florida get mortgage-approved even when others say no. We offer:

• FHA, VA, USDA, and conventional loans
• Loans with high debt-to-income ratios
• Loan options are accessible for individuals with poor credit ratings or previous issues.
• Fast closings
• Insider knowledge of Florida’s insurance market

You get more than a loan when you work with Gustan Cho Associates. You get a team that understands how Florida homeowners insurance affects your homebuying journey.

Final Thoughts

Dealing with homeowners insurance in Florida can be a real pain for both new folks and those already living here. But with some good advice and support, you can make sure your home is protected and get through your mortgage process with ease.

Borrowers who need a five-star national mortgage company licensed in 50 states with no overlays and who are experts on Florida homeowners insurance, please contact us at 800-900-8569, text us for a faster response, or email us at alex@gustancho.com.

We’re here to help you figure out the Florida market—from insurance to closing day and everything in between.

Frequently Asked Questions About Florida Homeowners Insurance:

Q: Why do I Need Florida Homeowners Insurance to Buy a House?

A: If you’re getting a mortgage in Florida, the lender will require you to have Florida homeowners insurance. It protects the home from damage and helps make sure the bank’s investment (and your own) is safe.

Q: Why is Florida Homeowners Insurance so Expensive in 2025?

A: Prices are increasing because of big hurricanes, expensive repairs, more lawsuits, and fewer insurance companies willing to stay in the state. All of this makes Florida homeowners insurance harder to get and more expensive.

Q: What Does Florida Homeowners Insurance Cover?

A: Home insurance typically helps repair your house, covers your stuff inside (like furniture and electronics), and even covers medical expenses if someone gets hurt at your place. Some policies can also pitch in for a hotel if your home is unlivable after a storm.

Q: Do I Need Flood Insurance on Top of Florida Homeowners Insurance?

A: Yes, in most cases. Florida homeowners insurance doesn’t cover flooding, so if you’re in a flood zone (or even near one), you’ll need a separate flood insurance policy.

Q: What Happens if My Insurance Company Drops Me?

A: If your Florida homeowners insurance gets canceled, don’t panic. You can look for another company, apply with Citizens Insurance (the state-backed option), or ask Gustan Cho Associates to help you find a new policy.

Q: How Can I Save Money on Florida Homeowners Insurance?

A: Raise your deductible, bundle your home and car insurance, add security features like alarms, ask for discounts, and keep a good credit score. These steps can help lower your insurance bill.

Q: Which Companies Still Offer Florida Homeowners Insurance in 2025?

A: Some companies still offering Florida homeowners insurance include State Farm, Citizens Insurance, Universal Property & Casualty, Tower Hill, and Security First. Not all companies cover every area, so it’s smart to check with a local expert.

Q: Will Florida Homeowners Insurance Affect My Mortgage Approval?

A: Yes. You need proof of Florida homeowners insurance before your loan can close. Your lender wants to make sure the home is insured in case of storms or damage.

Q: When Should I Start Shopping for Florida Homeowners Insurance?

A: Start right after your offer is accepted or once you’re under contract. Comparing policies and getting approved takes time, so don’t wait until the last minute.

Q: Can Gustan Cho Associates Help Me with Insurance and a Mortgage?

A: Absolutely! Gustan Cho Associates helps Florida buyers get mortgage approval and find the right Florida homeowners insurance through trusted partners, especially when others say no.

This blog about “Crisis in Florida Homeowners Insurance” was updated on July 14th, 2025.