Homeowners' insurance prices
Florida is prone to natural disasters, including hurricanes, flooding and wildfires, and largely because of this insurance prices are among the highest in the nation.
Floridians pay an average annual premium of $5,292 for a home worth $300,000, according to Bankrate. This is nearly two-and-a-half times the national average of $2,267.
Major home insurance providers like Progressive, AAA and Farmers Insurance have reeled in some business, as the cost of operating in the state has become prohibitive for many insurers.
In 2024, Mark Friedlander of the Insurance Information Institute told CBS News Miami an internal study that found 15% to 20% of Floridians were forgoing home insurance — compared to 12% across the country.
However, some real estate experts say the state’s sky-high insurance rates don’t tell the whole story behind the foreclosures in Lakeland. Gate Arty, principal and co-owner at Keller Williams Realty, acknowledges the impact of insurance premiums, but he doesn’t believe Lakeland has a foreclosure problem.
“Distress sales just aren’t a significant piece of our market right now,” he told News Channel 8, pointing out that increased real estate activity in the area can affect the numbers.
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Learn MoreProtect your finances from foreclosure risks
For homeowners anywhere in the country that face the risks of natural disasters, it’s critical to take preventative steps to protect your home and bank account in case of a serious incident.
One of the first steps toward financial security in this case is ensuring you can afford your insurance premiums while having a cushion in place in case of unexpected increases or expenses. Setting a healthy budget and sticking to it can give you room to breathe, while an emergency fund can protect you from financial stress.
To make more room in your budget, consider shopping around for a new insurance rate. A few hours spent online or on the phone may yield hundreds of dollars of savings per year that you can use to bolster your finances.
If you’re in need of serious budget relief, refinancing your mortgage or working with your lender to modify the terms of your mortgage can help you avoid defaulting and foreclosure of your home.
“A lot of times, the biggest problem is that the homeowner doesn’t communicate with the bank, and that’s when things really start to spiral out of control,” Miller said.
In the wake of these insurance affordability issues, many Florida homeowners may be considering self-insuring instead of working with an insurance company. However, experts warn against such a step.
Florida's Insurance consumer advocate, Tasha Carter said in an interview in December, "Homeowners would need a substantial amount of capital in order to insure that they can rebuild their home if it is significantly damaged and uninhabitable,” Tasha Carter, Florida’s insurance consumer advocate, told WESH 2 News in December. “Most homeowners simply don't have enough accessible capital to be able to make those repairs."
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