Tackling the Burden of Skyrocketing Home Insurance Costs in Florida

by Jerome D. Ryans, President & CEO, Tampa Housing Authority

Among the housing challenges in Florida, one issue stands out-the soaring costs of home insurance. The recent data paints a stark picture: over the 18 months leading up to December 2023, home insurance rates in Florida surged by a staggering 23.9%, far outpacing inflation*. This dramatic increase has placed an unbearable burden on Florida families and has become a top concern for housing authority leaders statewide.

The numbers speak volumes. A single-family house's average premium skyrocketed from $2,798 to $3,466*, highlighting a sharp rise that has left many families struggling to keep up with their insurance payments. Competition usually drives down prices for consumers. News recently came out that the Office of Insurance Regulation approved eight new insurance companies to enter the state's insurance market. However, they are mostly taking policies away from State-backed Citizens and are slow to write new policies**. This means that rate decreases are yet not felt by property owners, in fact, the forecast for the upcoming year has been abysmal, with many insurers not decreasing rates at all, or actually preparing to increase*. The verdict is still pending on whether any measures taken thus far will in fact be felt on families' budgets.

Meanwhile, this financial strain not only impacts individual households but also ripples through public housing agencies, amplifying the challenges they face in providing affordable and sustainable housing options. For families relying on housing vouchers, the situation is even more dire. Landlords often require tenants to hold renters' insurance, a reasonable request to protect both parties. However, the exorbitant costs of insurance make it nearly impossible for housing voucher holders to comply. This creates a cycle of financial hardship, where families are caught between the necessity of insurance coverage and the inability to afford it.

The repercussions of these high insurance costs are profound and multifaceted. Families are forced to make difficult choices, often sacrificing essential needs to keep their homes insured. Public housing agencies are stretched thin, grappling with budget constraints exacerbated by these escalating expenses. The ripple effects touch every aspect of our communities, eroding financial stability and hindering long-term prosperity.

As leaders in the housing sector, we cannot stand idly by while Florida families bear the brunt of this crisis. It is imperative that legislators take swift and decisive action to alleviate this burden. We must explore innovative solutions, such as incentivizing insurance providers to offer more affordable options for homeowners and renters alike. Collaborative efforts between government agencies, housing authorities, and insurance stakeholders are crucial in finding sustainable strategies to curb these escalating costs.

Moreover, education and advocacy play a vital role in empowering families to navigate the complexities of insurance. Providing resources, guidance, and support can equip households with the knowledge and tools needed to make informed decisions and mitigate financial risks.

Our call to action is clear: we urge legislators to prioritize this pressing issue and work towards tangible solutions that lessen the financial strain on Florida families. By addressing the root causes of high insurance costs and fostering a climate of affordability and accessibility, we can build stronger, more resilient communities where every family has the opportunity to thrive.

Together, we can turn the tide on this housing challenge and forge a path toward a more promising tomorrow for all Floridians.

 

Sources:

*Florida Sun Sentinel: Home insurance cost hikes slowed at the end of 2023. Some say the crisis may be nearing its end. https://finance.yahoo.com/news/home-insurance-cost-hikes-slowed-181800690.html 

**ABC Action News: Insurance Agents say new companies slow to write new policies. https://www.abcactionnews.com/news/local-news/here-are-the-six-new-insurance-companies-doing-business-in-florida