Floridians Complain Even Though Homeowners Insurance Is Higher In Other States

There is so much chatter about homeowners insurance in Florida. A lot of it actually borders on hate speech. Yes, insuring your home in Florida is a lot more expensive than it used to be. Part of the reason is that we've had some pretty big natural disasters. Hurricane Ian in Southwest Florida is still very fresh on our minds. But how many of those rants about insurance rates on reddit threads take the time to look at what's going on in other states? Homeowners insurance isn't just going up in Florida.  There are many states that have just had drastic increases in their rates, too. In several states, their rates are even higher than those in Florida. Much higher.

In data compiled by Bankrate, they showed the average homeowners insurance cost in February 2024. The dataset they chose to use was "The average annual home insurance premium for a home with a dwelling coverage amount of $250,000." Yes, that coverage amount is low, but it allows them to compare rates across states with very different home values. We'll get more specific later.

The average annual premium for $250,000 in coverage in Florida was shown to be $1,968. That's $209 above the national average. Yes, Florida is definitely above the average, but let's see how this compares.

In Kansas, the same coverage is $4,072. Kansas gets it's fair share of natural disasters too (ever seen Wizard of Oz?). Kansas is also seeing a double hit as their property taxes are skyrocketing, too. With the homestead exemption here in Florida, we're definitely in better shape with that, at least.

That's for that same $250,000 policy. People in Oklahoma have reported that their insurance has tripled in the past two years. Add in another 50% increase in car insurance and the Sooner state is getting crushed.

How about Nebraska? You want to live in Nebraska? On top of the bitter cold winter weather they're dealing with the highest homeowners insurance in the country. An average of $4,745 of that $250,000 policy. As the storms that hit the midwest become more severe, the cost to repair and replace increases. As do the rates.

There are several other states that also come in with higher rates than those of us here in Florida. You can check the data to see for yourself, but let's get to something that's not in the data. Can you really buy a decent house in Southwest Florida for $250,00? Probably not.

Here's some real numbers. For a single family home in Southwest Florida, 1 mile from the coast, $470,400.00 coverage is $4,267.17 a year. The real culprit to our homeowners insurance rates is our skyrocketing home values and how expensive they are to repair and rebuild.

Some homes in Southwest Florida don't even insurance. The state does not make you get it - your mortgage company does. And even then, they only require you to have enough coverage to pay back what you owe on the mortgage. It's risky, but you can lower your premium by reducing your coverage amount. It's not something I recommend, but if you're struggling to get by it certainly is an option.

Lastly, before you decide to go the uninsured route. My friend actually bought a house in Estero on the water after Ian. The previous owners did not have coverage and were forced to sell it when they couldn't cover the repairs.

It's been a few months since my last trip to Pine Island. Every time I visit one of Southwest Florida barrier islands I still hold my breath, wondering what things are going to look like.  What is still standing and what has been razed due to too much hurricane damage. It's nice to see the piles of debris cleaned up. Hopeful. However, those wide open beaches and lots are also a cruel reminder that  someone's home or business once stood there. The island is showing great signs of recovery but there is still a long way to go as evidence by these heartbreaking photos of Matlacha 17 months after Hurricane Ian.

The bridge crossing from Cape Coral to Pine Island is still undergoing repairs and can get congested. Matlacha is the community that welcomes visitors to the island. It is small, on a narrow strip of land that is a haven for both artists and fishermen. It has an eclectic, funky vibe with brightly colored homes and businesses. Cottages full of upscale art share the island with dive bars full of shrimpers and everything in between. It is uniquely Florida and people love it.

I did not venture onto the rest of Pine Island this trip but was told it is in various stages of repair also. Part of the problem with rebuilding much of Matlacha is the fact that many structures were on land that eroded and were washed away by the hurricane. Not to mention the bureaucracy of insurance and government that so many hurricane survivors are all too familiar with.

If you go to Matlacha, many of the shops and galleries have reopened. For dining, The Perfect Cup is open and so is Blue Dog Bar and Grill. Further into Pine Island, The Lazy Flamingo and Tarpon Lodge are also open for dining. I was at the lodge over the summer and here are some photos I took from the drive out. You can see not all is gloom and doom.

Here is an update. Check out there photos of Matlacha 17 months after Hurricane Ian. Take a drive and visit the businesses that are open if you can.