Premier Homeowners Insurance Says Rising Premiums Pose Threat to Florida

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A new survey conducted by revealed an average home insurance policy in Florida comes with a $2,500 per year deductible, and a premium that amounts to more than $1,101 annually. Floridians are starting to wonder how they will be-able to afford homeowners insurance in the future.

Individuals who have shopped for Florida homeowners insurance know that they are paying more than ever before for their policies. Just when home-buying Floridians began to think it was safe to enter the market again, the threat of unaffordable home insurance premiums has them pulling back. The resulting stall in home sales threatens an incipient real estate recovery that at this point barely qualifies as one.

The culprit is, of course, Mother Nature. Because she blew fiercely and drenched the Sunshine State with enormous amounts of water in previous hurricanes, insurers in the state were driven to distraction. That led to state-run Citizens Property Insurance becoming overstocked with risky properties, which in turn forced state officials to lean on Citizens to divest itself of some risk—that is, to cull the riskiest properties from its portfolio and back into the private sector.

40 percent of Floridians surveyed recently said "they are nervous about having to pay higher homeowners insurance premiums in 2013", while 30 percent were worried about not being able to afford their home insurance premiums in the future.

"The result is ballooning home insurance policy premiums that are hitting homeowners and potential home-buyers alike. The former are wondering if they will be able to hold on, with the insurance premium in some cases having grown larger than the mortgage. Some home-buyers are finding it impossible to close on properties they otherwise qualify to purchase," says Morgan Moran of, an online insurance agency that helps consumers find quality home insurance policies.

Moran said, "Florida was hard hit by the subprime housing crisis, as everyone knows. It has more delinquent mortgages per capita than any other state and some of the most expensive insurance premiums. But more is at stake than balanced individual homeowner budgets. For Florida to be hit now with another round of home insurance premium rate increases means beleaguered homeowners will not be able to contribute to the state’s economic recovery".

Because Citizens also pulled out of the program that insured builders against loss during construction of homes, contractors have been forced to find more expensive home insurance elsewhere. That cost is being passed on to home-buyers, which is yet another obstacle to new home sales.

State officials are trying to avoid a post-storm economic crisis that could ensue if Citizens were bankrupted by a storm and officials had to levy taxes to recoup major losses. Yet the preemptive decisions being made by these same officials are producing a similarly negative economic effect.

The great news is that with the help of online insurance agencies like, it is possible to find a better quality homeowners insurance policy with cheaper premiums.

If a reasonable middle ground isn’t found that protects Citizens’ long-term financial solvency without driving the economy into the ground in the short term, Floridians are apt to pay now and later. That’s because an economy weakened now won’t be resilient enough to support a post-hurricane recovery of any magnitude. This worst case scenario couldn’t be worse.

Learn more about a professional home insurance agent at


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Laurin Agnew
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