Redfin Survey

70% of Florida Homeowners Have Seen Rise in Insurance Costs or Changes in Coverage

(NASDAQ: RDFN) —Nearly three-quarters (70.3%) of Florida homeowners and over half (51%) of California homeowners say they or the area they live in has been affected by rising home insurance costs or changes in coverage (e.g., their insurer dropped them) in the past year. That compares with less than half (44.6%) of homeowners nationwide, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

This report is based on a Redfin-commissioned survey by Qualtrics in February 2024. The nationally representative survey was fielded to 2,995 U.S. homeowners and renters.

Insurance is top of mind for homeowners in Florida and California because those states are the epicenters of the insurance housing crisis. Many homeowners have seen their premiums skyrocket, and some have lost coverage altogether because intensifying natural disaster risk has prompted many insurers to stop doing business in Florida and California. Seven of California’s biggest property insurers have recently opted to limit new policies in the Golden State amid increasing wildfire risk. And in the Sunshine State, 11 insurers have liquidated amid growing flood and storm risk.

Mounting insurance costs and natural disasters are prompting some people to relocate. In Florida, 11.9% of survey respondents who plan to move in the next year cited rising insurance costs as a reason—roughly twice the national share of 6.2%. And in California, 13.1% of people who intend to relocate in the coming year cited concern for natural disasters or climate risks as a reason, compared with 8.8% of respondents nationwide. But while some people are leaving disaster-prone areas, there are still more people moving in than out, a separate Redfin analysis found.

“Homeowners living in areas where insurance premiums are surging are at risk of seeing their properties gain less value than homeowners in areas with stable premiums—and in some cases, they may even lose money,” said Redfin Chief Economist Daryl Fairweather. “Homes with low disaster risk and low insurance costs will likely become increasingly popular, and thus more valuable, as the dangers of climate change intensify.”

Condo prices in some parts of Florida have already started to fall amid an increase in insurance costs and HOA fees.

12% of Florida Homeowners Who Have Faced Insurance Changes Were Dropped By Their Insurer

This section focuses on the 1,198 U.S. homeowner respondents who said they or their area has or may have been impacted by rising home insurance costs or changes in coverage in the past year. Redfin asked these homeowners specifically which insurance insurance-related changes they’ve seen and are concerned about.