Florida residents flee state as insurance premiums jump 900%

Skyrocketing insurance premium prices in Florida are causing residents to drop their insurance, consider selling their home and even move out of state, according to recent reports.

For years, the sunny, bustling state has been a magnetic destination for many Americans, a phenomenon that has boosted housing demand, especially during the pandemic, as well as home prices.

But while Florida was the number one state in the country for people to move to in 2022, it was also the one with the highest number of residents willing to move, according to SelfStorage.

According to the U.S. Census Bureau, an estimated 275,666 people left Florida in 2022 — nearly 23,000 people each month. Most, according to the bureau, moved to places like Georgia (46,884), North Carolina (42,301), Tennessee (36,200), South Carolina (31,456) and Texas (29,975).

Apartment towers in Miami, Florida on January 20, 2022. Insurance premiums in the Sunshine State have risen so high that people are considering going without insurance coverage or moving out of state.

There are many reasons why people are leaving the Sunshine State – including the rising cost of living, skyrocketing home prices, high property taxes and the increased risk of deadly and devastating extreme weather events like hurricanes.

Insurance premiums in the country, which are the highest in the nation according to a recent study by the Insurance Information Institute (Triple I), are also one of the reasons Floridians are considering leaving the state, as many can no longer afford insurance on their homes.

Several homeowners said The Wall Street Journal (WSJ) that the increased cost of premiums has caused them to completely or partially drop their insurance — what’s known as stripping — and even consider selling their properties.

Home insurance premiums have tripled in the state over the past five years, with residents now paying an average of more than $4,200 a year. The national average is $1,700, according to Triple I data.

Some insurance premiums are up as much as nine times from 2022, Oscar Seikali, CEO of NSI Insurance Group, told the WSJ, with multimillion-dollar homes generating premiums worth up to $600,000 a year.

That’s happened in part because construction costs — which are taken into account when determining how expensive it would be to rebuild a home once destroyed — have risen by an astonishing 40 percent since 2017 and because of the excess litigation that’s been going on in Florida.

Analysts have raised concerns about what could happen if a major natural disaster, such as a hurricane, hits the state, since many Floridians lack insurance coverage.

Stripping is “very dangerous because once the storm or the fire hits them, if they don’t have insurance, they will suffer really big losses,” Yanjun (Penny) Liao, an economist at Resources for the Future, previously said Newsweek.

But with insurance premiums expected to continue to rise and state lawmakers still mulling a solution to the mass exodus of major insurers from the state, more and more Floridians are expected to drop coverage on their homes.

Have you been affected by the rising cost of home insurance in Florida? Thinking of moving out of state or giving up your home insurance? Email [email protected]