Florida insurance

Florida insurance refers to financial products regulated by the Florida Office of Insurance Regulation that protect against specific risks such as hurricanes, floods, and auto accidents within the state’s jurisdiction. Florida homeowners insurance covers property damage from perils like windstorms and lightning, as mandated by state law for mortgaged homes.

Citizens Property Insurance Corporation serves as a state-backed insurer of last resort when private insurers exit high-risk areas like Miami-Dade and Broward counties. The average annual premium for Florida homeowners insurance reached $6,000 in 2023, nearly triple the U.S, according to a report from the Insurance Information Database.

Average ($1,700) according to Triple-I data. Florida requires all drivers to carry minimum personal injury protection (PIP) coverage of $10,000 under its no-fault car insurance system.

Flood insurance is not included in standard homeowner policies but is mandatory for properties in FEMA-designated Special Flood Hazard Areas; the National Flood Insurance Program covers up to $250,000 for structures and $100,000 for contents. Insurance fraud rates in Florida are among the highest nationally, driving up premiums through practices such as assignment of benefits scams reported by the NICB.

Major insurers including State Farm and Farmers have limited or discontinued new policies citing rising reinsurance costs from catastrophic hurricanes like Ian (2022). Policyholders often face stricter roof age requirements with many companies refusing coverage on roofs older than 15 years due to high claims frequency.

Florida property insurance companies must maintain a claims-paying ability rating of B+ or better from Demotech Inc. Under state solvency standards since 1996.

State laws mandate insurers provide hurricane deductibles separately from standard deductibles–ranging from 2% to 10% of dwelling coverage–to limit their total storm payout exposure.