Rising Costs and Uninsured Homeowners: A Concerning Trend in Florida and Across the U.S.

In Florida, a concerning trend is emerging as more homeowners are opting to go without property insurance, despite the high risk of catastrophic weather events such as hurricanes and floods. According to research from the Insurance Information Institute, about 1 in every 7 Floridian homeowners is choosing to forego insurance coverage.

Mark Friedlander, director of corporate communications at the Insurance Information Institute, highlighted the severity of the situation, especially as experts predict a particularly severe Atlantic hurricane season. Friedlander noted that the increase in uninsured homeowners marks an alarming trend, with up to 15% of Florida homeowners estimated to be without property insurance.

While Floridian homeowners face unique challenges due to increased risks and high property and casualty rate hikes, Friedlander emphasized that the issue is a concern for all American homeowners. He stressed the importance of adequate insurance coverage to help homeowners recover quickly from natural disaster losses.

A national consumer survey conducted by III and Munich Re in 2023 found that 12% of U.S. homeowners do not have property insurance, a significant increase from the pre-pandemic rate of just 5%. Friedlander expressed concern over the trend, as many Americans may not be able to afford rebuilding their homes following a catastrophe without adequate insurance coverage.

Additionally, the survey revealed that 25% of American homeowners do not expect to be impacted by weather risks, despite 32% reporting negative weather events in the last five years. Thunderstorms, flooding, and tornadoes were identified as the largest weather risks across all regions, with the Midwest and southern USA, including Florida, facing the highest percentages.

One of the largest insurance gaps for disaster coverage in the country is flood insurance, with less than 10% of American homeowners being insured for floods. Many homeowners mistakenly believe their standard property insurance policy covers flood damage, leaving them at serious risk.

Rising costs are a significant factor driving Floridian homeowners to drop their insurance coverage, with factors like inflation, high claims costs, and increased climate change risks contributing to the rising costs. Friedlander warned against axing property insurance coverage, emphasizing the financial protection it provides in the event of covered hazards.

To help homeowners save on insurance costs, Friedlander provided tips such as bundling home insurance with other coverage, increasing the deductible, and asking about discounts. He also highlighted various discounts offered by home insurers, encouraging homeowners to check with their insurance agent to see what discounts they qualify for.

In conclusion, the Insurance Information Institute stressed the importance of adequate insurance coverage for all homeowners, urging American consumers to speak with their insurance advisor to find ways to save on coverage rather than going uninsured. With the increasing risks of natural disasters, having proper insurance protection is essential for homeowners across the country.