Florida homeowners are paying the highest insurance premiums in the country - and costs are still going up.
Data from Insurify shows the average annual premium in the state is $8,292, which is about 181% higher than the national average. That figure is expected to rise further to around $8,458 by the end of 2026.
The increase is largely tied to hurricane risk and the cost of rebuilding homes. Areas in the southern part of the state face the highest premiums due to the concentration of higher-value properties and greater exposure to storms.
“Florida remains the most expensive state for home insurance as a result of hurricanes, which can cause economic damages ranging in the hundreds of billions. The nine most expensive natural disasters on record in the US have been hurricanes,” Insurify senior economic analyst Matt Brannon said.
Recent storms have already added pressure. Hurricanes Helene and Milton in 2024 resulted in roughly 300,000 claims, contributing to an 18% increase in premiums in 2025. Even without a landfalling hurricane in 2025, insurers continue to price in future risk.
“It could be worse. 2025 was the first year in a decade without a landfalling hurricane in the US. If 2026 brings an active hurricane season, premiums could rise more sharply in 2027,” Brannon said.
Florida’s costs remain far above other states. Oklahoma, the second most expensive, has premiums about $3,000 lower per year. At the other end, Vermont and Utah have some of the lowest rates, with annual premiums around $1,094 and $1,370.
At the same time, insurance costs are rising faster than incomes. Separate data from LendingTree shows premiums have increased much more quickly than both inflation and wages.
Since 2021, home insurance costs have gone up 46%, compared to 16% overall inflation. In Florida, premiums rose 49.5% from 2020 to 2025, while inflation increased 27.9%. Median household income grew 29.2% from 2020 to 2024, still below the pace of insurance increases.
Higher rebuilding costs are another key factor. According to Insurify, building material costs rose 15% in the past year alone, compared to a combined 7% increase over the previous two years.
“Insurance companies have had to repair or rebuild more homes than normal, and the cost of rebuilding each one is more expensive than it was before 2020. Unfortunately, insurance companies raise their rates to account for this type of growth in their expenses,” LendingTree researcher Rob Bhatt said.
