The Highest Property Insurance Rates in the U.S.
According to the Insurance Information Institute, Florida has the highest property insurance rates in the entire United States.
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On average, Florida homeowners pay about $3,340 a year, as seen in 2023. This is a whopping 37% increase from what was the average in 2021, which was only $903.
Some Areas Are Harder Hit
Some regions of Florida are harder hit when it comes to insurance rates skyrocketing. Often, areas that are in regions that can be devastated by natural disasters, such as hurricanes, have seen their rates increase.
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For example, homeowners in Southern Florida have greatly struggled to afford their property insurance rates.
Rates Will Continue to Rise
According to many analysts, insurance rates will likely only continue to rise, particularly in certain areas.
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Florida’s state-run insurer, which is supposed to only be the insurer of last resort, normally has the lowest prices available. However, if Citizens Property Insurance receives the rate hike of 13.5% it requested, many people would see their insurance once again jump to unaffordable heights.
Another Rate Hike
If Citizens does indeed raise their insurance prices, then homeowners using this last resort insurer may see incredible rate increases.
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For example, homeowners in Miami-Dade County may end up paying $5,804 a year after this hike. Meanwhile, Broward County would see a jump up to $6,112.
A Number One Issue for Floridians
Thanks to this ongoing problem, many Floridians have stated that rising property insurance costs have become their number one issue during this election season.
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A new poll even revealed that 22% of Floridians believe property insurance costs are the second most essential issue that needs to be dealt with. Inflation was the first most important issue at 27%.
Democrats vs Republicans
Because this issue remains so prevalent throughout much of Florida, the problem has become a major talking point among lawmakers.
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Many Democrats have tried to take advantage of this crisis, blaming Republicans for allowing property insurance rates to spiral so out of control.
An Issue That Won’t Get Better
House Democratic Leader Fentrice Driskell of Tampa explained how people were “connecting the dots between who has been in charge and their current bad situation with respect to the property insurance market.”
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Driskell stated, “Unfortunately for the Republicans, this issue’s not getting better for them and it won’t be better for them before the November election.”
Do Democrats Have Plans?
Though Democrats have attacked Republicans for letting this crisis get out of hand, analysts have pointed out that the Democratic Party doesn’t have any ideas that would successfully pass a Republican-held Legislature.
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Plus, it would be hard for the Legislature to truly reduce property insurance rates in a very short time.
Republican Actions to Help Crisis
Republicans, meanwhile, have explained that they’ve done several actions to help try and solve this crisis.
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One of these actions was a $447.4 million tax cut that would help to reduce premiums. However, Florida homeowners haven’t seen these moves truly help get their insurance costs lowered yet.
Potential Plans
Some Democrats have tried to put through plans or laws to help address this issue, though they’ve often received little backing.
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For example, one plan pushed for Citizens to become available to any homeowner in Florida. However, the bill never received a hearing.
Florida’s Future
Because there are no set-in-stone plans to deal with this insurance crisis, many critics have stated that Floridians may continue to struggle.
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Former State Senator Jeff Brandes said, “The Florida Legislature in so many areas of public policy has no vision for where they want to go.”