A growing number of Canadian snowbirds are selling their Florida properties as soaring insurance costs and market instability make homeownership in the state increasingly affordable.
Ontario retiree Cesidia Cedrone and her husband recently sold their condo after seeing their property insurance premiums climb from a few thousand dollars to about US$16,000 a year. The couple's decision reflects a broader trend among Canadians who can no longer justify the high cost of insuring their US homes.
Florida’s property insurance market has been in turmoil for several years, with insurers withdrawing from the state or sharply increasing rates. The market’s instability has been driven by escalating claims costs following hurricanes, rising reinsurance expenses, and what insurers describe as a litigation crisis over disputed claims.
The result has been a dramatic rise in premiums. Even homeowners who have not made claims are seeing their insurance bills triple or quadruple. For snowbirds, these costs are compounded by the weak Canadian dollar, which now hovers around US$0.69, further eroding their purchasing power and ability to keep up with US-based expenses.
Industry reports showed that private insurers in Florida have faced consecutive years of underwriting losses, forcing some into insolvency and pushing more homeowners toward Citizens Property Insurance Corp., the state-run insurer of last resort. Citizens itself has seen policy numbers surge, prompting regulators to approve rate hikes to stabilize the program.
For Canadian property owners, these market dynamics have turned what was once a predictable annual expense into a financial burden. Many retirees who bought Florida properties when insurance costs were modest now find the premiums unsustainable, even for homes not located in high-risk coastal areas.
Real estate agents said that the sharp increase in insurance rates has become a major factor in the growing number of Canadian sellers. Combined with rising property taxes and maintenance fees, the cost of carrying a second home has reached a tipping point.
