Florida homeowners are self-insuring, but can they afford to risk paying for a ‘catastrophic’ loss out of pocket?

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M. Friedman has paid for property insurance on his Coral Gables home for 17 years — but he’s now debating whether it’s still worth it in the face of rising insurance costs across Florida.

“We’re getting to a point now where it’s really math,” Friedman told CBS News Miami in July 2024 (1).

Even with home upgrades he’s made to lower his insurance costs, he’s still shelling out over $10,000 a year.

“I know a lot of people have seen their premiums go up more,” he said.

Mark Friedlander, director of communications at the Insurance Information Institute, cited to CBS News Miami an internal study that found 15% to 20% of Floridians are forgoing home insurance. That’s compared to 12% across the nation.

That may not be so surprising, considering how high insurance rates have been amid a slew of major weather events and several providers fleeing the state. According to Bankrate, as of November 2025, the average annual premium for insurance in Florida is $5,838 for a $300,000 home — $3,414 more than the national average (2). Some cities in the state have excessively high insurance costs, such as Fort Lauderdale, which has an average annual premium of $10,917 for such a dwelling.

Homeowners are resorting to different options in order to combat housing costs — with some moving to other states, while others are opting to abandon homeownership.

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Despite the number of Floridians without insurance policies, Friedlander doesn’t recommend this option for homeowners.

“Realistically, those homeowners can’t afford to pay for a catastrophic loss to their property out of pocket,” he told CBS News Miami.

He recommends staying insured, even with Florida’s extraordinary prices.

Friedlander believes the cost issue is tied to homeowners who sign up with surplus line insurers, including those with properties on the coast, or those at high risk of experiencing severe weather. These companies are licensed outside of the state and are known to sell high-risk policies that are often more pricey.

“They don’t have to follow the same regulations as the standard insurers, meaning they don’t have to get their rates approved,” he said.

Many homeowners lose out on savings because they don’t shop around their policies, instead going with an insurer they already use or are familiar with. Too often, this leaves money on the table that could go towards saving for an emergency fund, or for retirement.

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CBS News (1); Bankrate (2)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.