When you compare homeowners insurance rates in the country, Florida’s Home insurance rates come out on top. It is the most expensive state in America with regards to home insurance. The average premium for a house is about $2000 annually- about four times the cost of insurance in most other states! With insurance rates continuing to rise with no signs of stopping, Florida’s reputation is at stake.

The reason for the hike in insurance rates is due to the natural disasters which hit the area on a frequent basis. Florida is prone to the worst hurricanes, tornados, windstorms, floods, and snow storms. This automatically causes insurers to charge higher premiums from homeowners in Florida. The houses in this region are at a much greater risk of damage than anywhere else. Insurance companies charge more due to the amount of destruction the state is accustomed to.

Over the past few years, insurers have been making profits as the hurricane claims are down. The insurance claims are down due to a homeowner’s insurance pool called Citizens Property. This pool was supposed to lower the insurance rates but had the opposite result, adding about 25% on average.

Florida home insurance rates do not cover flood insurance; this policy has to be bought separately. The damage done due to flooding will not be included under the normal policy. Rates on older houses have been increasing too as they are at greater risk of damage.

There has been a recent decrease in people moving to Florida and buying property in the state due to the increasing insurance rates faced by homeowners. Even though the state has lower property taxes compared to other states in the country and no income tax, it is still unattractive for new citizens.