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Florida Ranks 6th in the Country for Homeowner Insurance Costs

Posted by Benjamin Dona on Sunday, August 31st, 2008 at 3:47pm.

According to their survey on the most expensive states for homeowners insurance costs, Forbes magazine ranks Florida number six in the country. The survey is based on the National Association of Insurance Commissioners most recent study of insurance premiums, drawn on 2005 data due to lags in state reporting procedures. Multiple factors are used in the analysis, not necessarily just the threat of a single disaster. Hurricanes, tornados, and floods make the headlines, but hail and wind cause more damage on average. Building costs are another important consideration. Insurance typically pays out at replacement cost (the amount it would take in labor and materials to replace/rebuild the property) and the rising costs of such items are eventually reflected in the costs an insurance company must pay for repairs. Accordingly, states where Mother Nature is usually unkind tend to have the highest average annual insurance costs. This year's top ten most expensive states included:

  • Texas - $1,372
  • Louisiana - $1,144
  • Oklahoma - $1,030
  • District of Columbia - $963
  • Mississippi - $939
  • Florida: $929
  • California: $895
  • Rhode Island: $849
  • Alabama: $847
  • Kansas: $836

Many states have set up insurers of last resort in order to help with rising costs. Florida's Citizens Property Insurance Corporation, which is underwritten by tax dollars, holds the biggest market share in the state. Many experts say if the numbers reflected in its policies where included in the study's reported premiums, Florida would be the most expensive state in the country bar none. Fortunately, Florida's state government has been very proactive over the last year in fighting to help keep insurance costs down for everyone. Recent changes in the law have forced insurers to lower premiums and the regulatory agencies are taking a much stronger stand against requests for rate hikes. A new Insurance Bill of Rights was recently enacted and a substantial number of smaller insurers have entered the Florida market.

Hopefully, Florida residents will begin to see an easing in their ever rising insurance costs as a result.

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About the Author

Gulf Coast Associates, RealtorsBenjamin Dona is the Broker and Owner of Gulf Coast Associates, Realtors in Bonita Springs, Florida. He holds two advanced degrees, an MBA and an MA, and has an extensive background in both business and marketing. In 1998, he founded Gulf Coast Associates, and formed a group of like-minded Realtor® associates dedicated to offering professional Southwest Florida real estate services by concentrating on information, education and the use of leading edge technologies. He also is a recognized expert on the "Net," a much-quoted and read blog author, and a contributor to both national and international news outlets. Benjamin is a member of the National Association of Realtors, the Florida Association of Realtors, and numerous local real estate boards throughout Southwest Florida.

Contact Benjamin Dona at 239-948-3955



6 Responses to "Florida Ranks 6th in the Country for Homeowner Insurance Costs"

James wrote:
Darn looks like we took #1 on another list, however, I am not so happy about this designation. One thing I can say is that Texas insurance premiums have been on their way down. We had a sizeable peak after Katrina because we got added to the Huricane risk list.

Posted on Tuesday, September 2nd, 2008 at 3:44am.

Deb Dahlberg Rowland wrote:
I am with James, it's not the best list to be on top of...Looks like we have a huricane headed this direction in the Gulf as I comment. Keeping fingers crossed that the storm weakens but Texas is preparing for the worst and hoping for the best.

Posted on Wednesday, September 10th, 2008 at 1:02pm.

Benjamin wrote:
I'll hope (and pray) for you folks too, Deb.

We have been experiencing the outer bands of Ike since early this morning. Lots of wind and rain and sheet flow flooding. Nothing like what you guys are going to get, but still a problem as many are being foced from their homes by the rising waters here.

Posted on Wednesday, September 10th, 2008 at 5:51pm.

Ki wrote:
Why is Texas number one? That is wierd. I mean there is the occasional hurricane but they typically dont hit that hard. There are no earthquakes or anything.

Posted on Saturday, September 20th, 2008 at 6:42am.

Benjamin wrote:
My guess would be it's because of the size of the state. You probably get a lot more storm (wind and hail) damage than you might think.

Posted on Saturday, September 20th, 2008 at 9:29am.

Ki wrote:
That's probably true. We get a lot of hail damage, at least in Austin. It doesn't make the news, but every time it happens it damages a lot of roofs.

Posted on Saturday, September 20th, 2008 at 9:50pm.



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