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High homeowners insurance rates scaring away Florida homebuyers, other states face the same issue

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Southern states like Florida, Texas and Oklahoma have the highest homeowners insurance rates in the country.  (iStock)

Florida is in the middle of an unprecedented insurance crisis. The state has the highest homeowners’ insurance rates in the country, an Insurify study found.

These record-high rates are driving potential homeowners away, especially in coastal areas where rates are highest. 

Realtors in the state cite the aftermath of Hurricane Ian as one of the largest factors driving rates up, a Bloomberg article reported. After Hurricane Ian, rates shot up by 42%, according to the Insurance Information Institute.

“You’ve got people that went through the storm and just want to move on, and don’t really think the affordability is here anymore because of insurance,” said Marlissa Gervasoni, Royal Palm Coast Realtor Association president.

Southwest Florida has traditionally been a hot spot for buyers. Its home prices have often outpaced the national average. Even with an increase in listings, buyers are now shying away from the area, largely due to unaffordable homeowners insurance.

Additionally, rampant insurance fraud has plagued Florida in recent years, causing insurers to raise rates to keep up with demand.

You can shop around to make sure you’re not overpaying for your homeowners insurance policy. Get free quotes from Credible in minutes and compare multiple policies at once.

2023 WAS THE HOTTEST YEAR ON RECORD, DRIVING UP UTILITY COSTS AND HOMEOWNERS INSURANCE PRICES

South and Midwest hit with highest rates

Florida isn’t alone when it comes to rising homeowners’ insurance rates. Nationally, the average cost of homeowners’ insurance went up by 12% for $300,000 in property coverage, Insurify’s report found. The average annual cost now sits at $1,770.

Certain states have felt these rising premiums more than others. While Florida tops the list, Oklahoma residents have seen their annual rates increase 24% to $4,782, on average. Mississippi follows close behind with an average yearly premium of $4,017, up 23% from the previous year. Texas has also seen an increase in claims due to dangerous weather with an average premium of $3,969, up 18% annually.

These states face a higher risk of weather-related events that require large payouts from insurers. In turn, insurance companies are becoming less profitable and raise rates.

Areas that have a low risk of natural disasters pay the lowest rates. Currently, Vermont has the cheapest homeowners insurance rates, at just $914 annually, on average, according to Insurify.

Having enough insurance is vital. Having the appropriate insurance coverage is just as important. To ensure your insurance is suitable for your circumstances, visit Credible to check out plans, providers and costs.

SOCIAL INFLATION CAUSING INSURANCE RATES TO JUMP, NO END IN SIGHT FOR RISING PREMIUMS IN 2024

Major insurers are raising rates in multiple states

Specific insurance companies are raising rates across multiple states. Allstate has implemented rate hikes in Illinois recently, as well as California, New York and New Jersey.

In Illinois, Allstate rolled out a 12.7% increase in rates, the Chicago Tribune Reported. At the end of 2023, the company raised rates in California by 30% on average, while New Jersey saw rates go up by 20% and New York residents’ rates went up by 14.6%, Insurance Business Magazine reported.

State Farm also plans to raise homeowners insurance rates, particularly in Illinois. For new policies opened in March, homebuyers will see rates rise by 12.3%, according to the Chicago Tribune. For renewals, customers won’t see rates rise until May. In terms of dollars and cents, policies will go up by about $138, on average.

If you’re considering switching insurance providers, consider using Credible, where you can get free rates quotes from a variety of companies without affecting your credit score.

1 IN 5 HOMEOWNERS THINKING OF SELLING IN THE NEAR FUTURE: ZILLOW

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Cliff Asness’s AQR multi-strategy hedge fund returns 9% in the first quarter during tough conditions

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Cliff Asness.

Chris Goodney | Bloomberg | Getty Images

AQR Capital Management’s multistrategy hedge fund beat the market with a 9% rally in the first quarter as Wall Street grappled with extreme volatility amid President Donald Trump’s uncertain tariff policy.

The Apex strategy from Cliff Asness’ firm, which combines stocks, macro and arbitrage trades and has $3 billion in assets under management, gained 3.4% in March, boosting its first-quarter performance, according to a person familiar with AQR’s returns who asked to be anonymous as the information is private.

AQR’s Delphi Long-Short Equity Strategy gained 9.7% in the first quarter, while its alternative trend-following offering Helix returned 3%, the person said.

AQR, whose assets under management reached $128 billion at the end of March, declined to comment.

The stock market just wrapped up a tumultuous quarter as Trump’s aggressive tariffs raised concerns about an severe economic slowdown and a re-acceleration of inflation. The S&P 500 dipped into correction territory in March after hitting a record in February.

For the quarter, the equity benchmark was down 4.6%, snapping a five-quarter win streak. The tech-heavy Nasdaq Composite lost 10.4% in the quarter, which would mark its biggest quarterly pullback since a 22.4% plunge in the second quarter of 2022.

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