As the changing climate continues to increase the frequency and intensity of severe weather events like last week's devastating Hurricane Helene, homeowners in Florida are dealing with an additional crisis of home insurance companies pulling their coverage out of the state.
What's happening?
As explained by WUSF, "Big brand-name insurance companies are straight up walking away from the riskiest states" like Florida, where the threat of hurricanes and other natural disasters has become a year-round concern.
The companies that remain available in the state "are often doubling and tripling rates over a matter of just a few years," per WUSF, forcing residents to reconsider where in the country they should live.
"Just a few years ago, I was paying around $5,000 a year for my homeowners insurance. It's now over $15,000 per year," Jeffrey Phillips of St. Petersburg told WUSF. "My insurance agents don't seem to be able to help. I've looked on the internet to see if there are other options to have, and I just have found I'm stuck."
To make matters more concerning, WUSF described Florida as the "origin story of this crisis" and added: "The home insurance market in every other state seems to be headed down the road that Florida has paved."
Why is this important?
Home insurance is a necessity that can help you rebuild or recover from flooding or fire damage. However, insurance companies have struggled to account for the ongoing threat of extreme weather events. As a result, homeowners have found it harder to secure affordable insurance, with some even unable to get quotes from other insurers that fear losing money.
AAA recently announced it would discontinue some of its insurance coverage in Florida, both home and auto, joining other companies — like Farmers Insurance — that have already stopped offering policies in the state.
Unfortunately, this crisis is not limited to Florida. WUSF noted: "In Louisiana, [insurance companies are] losing money because of hurricanes; in California, wildfires; in the Midwest, severe storms and tornadoes."
When insurers pull out of these states or hike their rates, homeowners have to turn to more expensive, state-run insurance programs or make difficult decisions about staying in high-risk areas.
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What's being done about this?
As WUSF noted: "Florida's insurance market is in the worst shape it's ever been."
Citizens Property Insurance Corp., a brand-new home insurance company created by lawmakers and run by the state, has increased the number of homeowners it covers from about 420,000 people to 1.4 million over the last five years.
However, the company is under investigation by the U.S. Senate for potentially not having enough money to pay out the next time a big disaster hits.
Florida's lawmakers continued the trend of appearing to protect insurers over homeowners by making it harder for consumers to sue their insurance companies and mandating roof inspections for homes over 15 years old, per WUSF.
Some states are trying to incentivize disaster-resistant home improvements to help mitigate these issues, but the overall outlook remains concerning for many people across the country.
"I think it's a mess," Tampa resident Maria Lopez told WUSF. "I'm not like a government-take-all person. I have my own company. I'm all for independent people and having their own thing, but definitely, there's an abuse to the citizen. There's an abuse to people."
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