Florida Homeowners Insurance Crisis 2026: What Homeowners Need to Know
8 min read
Feb 25, 2026
Florida Homeowners Insurance Crisis 2026: What Homeowners Need to Know
Florida is facing one of the most challenging homeowners insurance markets in the country. Rising premiums, stricter underwriting requirements, and insurance companies leaving the state have created uncertainty for many homeowners. In 2026, the crisis continues to affect property owners across Miami and South Florida, making it essential to understand what is happening and what options are available.
Why Is There a Homeowners Insurance Crisis in Florida?
The Florida homeowners insurance crisis is driven by several key factors:
Increased hurricane frequency and severity
Rising reinsurance costs
Litigation and roofing claim disputes
Inflation and construction cost increases
Carrier insolvencies and market exits
Florida experiences more hurricane exposure than most states. Combined with rising rebuilding costs, insurers have had to increase premiums or tighten coverage guidelines to remain financially stable.
Why Are Insurance Companies Leaving Florida?
Over the past several years, multiple insurance carriers have stopped writing new policies in Florida or have exited the state entirely. Some smaller insurers became insolvent, while others reduced exposure due to risk concentration.
When companies leave:
Homeowners have fewer options
Premiums increase due to reduced competition
Citizens Property Insurance Corporation grows
This shift places pressure on the remaining private carriers and creates a more restrictive underwriting environment.
Are Homeowners Insurance Rates Still Increasing in 2026?
In many areas of Florida, including Miami-Dade County, homeowners insurance rates remain higher than the national average. While rate increases may not be as dramatic as previous years, premiums are still elevated due to:
Hurricane risk exposure
Coastal proximity
Property value increases
Roof age and inspection requirements
Homes valued at $400,000 to $600,000 may see significant premium variation depending on mitigation features and flood zone location.
Who Is Still Writing Homeowners Insurance in Florida?
Despite the crisis, coverage is still available.
Options typically include:
Private regional carriers
National insurers with limited underwriting
Citizens Insurance (state-backed option)
Each option comes with different eligibility requirements. Homes with older roofs, prior claims, or located in high-risk flood zones may face stricter underwriting guidelines.
Working with an independent insurance agency can help compare available markets instead of relying on a single carrier.
Will Florida Homes Become Uninsurable?
Most homes are still insurable, but certain properties may face challenges, including:
Older roofs (15+ years)
Multiple prior claims
Coastal or high storm-surge exposure
Lack of wind mitigation features
In these situations, policy options may be limited, and premiums may be higher. However, mitigation improvements such as roof upgrades, storm shutters, and wind-resistant features can improve insurability.
What Can Miami Homeowners Do Right Now?
If you’re concerned about the Florida homeowners insurance market:
Review your current coverage limits
Confirm roof age and inspection documentation
Consider a wind mitigation inspection
Explore bundling policies
Compare multiple carriers annually
Proactive review helps prevent last-minute issues during renewal season.
Frequently Asked Questions About the Florida Insurance Crisis
Why is homeowners insurance so expensive in Florida?
Florida’s high hurricane exposure, rising reinsurance costs, litigation trends, and rebuilding expenses all contribute to elevated premiums compared to most states.
What companies have left Florida?
Several insurers have reduced exposure or stopped writing new policies in Florida due to financial pressure and risk concentration. Availability varies by region and property type.
Is Citizens Insurance a good option?
Citizens Property Insurance Corporation serves as a state-backed insurer for homeowners who cannot secure coverage through private markets. It may be a temporary solution depending on eligibility and property risk.
Are people leaving Florida because of insurance costs?
Rising insurance costs are a concern for some homeowners, particularly in high-risk coastal areas. However, many residents remain due to lifestyle, property value, and long-term investment factors.
Will insurance rates go down in Florida?
Rate stabilization depends on hurricane seasons, litigation reform outcomes, and reinsurance market conditions. While reforms aim to stabilize pricing, premiums remain elevated in many areas.
Final Thoughts
The Florida homeowners insurance crisis is real, but coverage remains available. The key is understanding market changes, preparing your property properly, and reviewing options proactively. Staying informed allows homeowners in Miami and across Florida to make confident insurance decisions even in a challenging market.
