Introduction- My Reasons For Writing This Blog
I am approaching my 70th birthday and my wife and I have been researching the possibility of moving to Florida. The weather is great, there is lot's of things to do and we have family in Tampa. However, the prospect of selling our home and purchasing one in that area presents some hurdles to be cleared. This blog post represents just one obstacle that may make that move difficult.
Everybody Is Moving To Florida?
We are all familiar with the popularity of moving to Florida. It has consistently led the nation in growth for several years, it's numbers grew over 2% annually for the past few years. During the pandemic years it was reported that nearly 1,000 people moved to Florida every day. One of the top destinations is the city of Tampa. However, there is one very important issue to consider if you are thinking of moving there and that is the cost and hidden expenses of home insurance.
Insurance: Whether You Are Buying Or Renting, It's Going To Be More Than You Think!
If you are thinking of moving to Florida and purchasing a home then it is a given that you have a very accurate picture of the key expenses that are associated with that move. While people are often enamored with the fact that Florida doesn't have state income taxes they are often side swiped by the problem of homeowners insurance.
The state of Florida is the most expensive state when it comes to home insurance. The national average annual home insurance premium is $2543 but in Florida the average annual premiums can total $7136! That is a big deal when it comes to the feasibility of moving to another state.
I live in Kansas and I'm familiar with expensive home insurance as the average annual cost here is north of five thousand dollars, which ranks third nationally. That is really kind of crazy when you consider that most people are not clamoring to move here!
Insurance in Florida is major cost consideration. If you are thinking of coming to Florida from Georgia, North Carolina or South Carolina it will be a major increase since these states all average under three thousand dollars. If you want to move from Vermont, New York, New Jersey Connecticut then you will really feel the sting because these states insurance costs are under two thousand dollars annually.
Anyway, you get the picture. People are moving to Florida by the droves and you wonder how many of them gave much thought to the insurance cost aspect. Three or four thousand dollars a year could add to your mortgage payment another three or four hundred dollars. Keep in mind that these average rates are all based on a $300K home which is not what most people are going to be living in when they move to Florida.
Why Are Homeowner Insurance Rates So High In Florida?
The answer to this question is pretty straightforward. In most states homeowners insurance comes in one policy. In Florida, and this is true in Tampa too, is that you probably are going to be required to purchase at least three policies.
The first policy, basic homeowners, is much like any other state as far as coverages are concerned. However, because of Florida's propensity to be hit hard by hurricanes there are two other factors that make Florida so expensive.
The first one that comes to mind is a wind damage dedictable, specifically for hurricanes. Hurricane deductibles can range anywhere from 2 to 4% on a $400,000 home. What does that mean? If you have a $400,000 home and you get hit hard by a hurricane you may have to absorb up to $8000 before your homeowners policy kicks in. For most people that will be catastrophic. Because of hurricanes between 2019 to 2023 many insurers raised their premiums by double digit percentages. In fact, one insurance company received permission in 2025 to increase rates by 31%! (Source)
The second hidden expense is a policy that you will be required to purchase which is not covered in the main policy and that is flood insurance. In the Tampa area this policy on a $300,000 home will cost around $900 to $1000. This is an expense that the vast majority of this country does not have to absorb. It doesn't really matter whether you are in a flood zone or not, you are going to help cover the costs of recent and expected hurricane flooding.
Many Insurers Have Left Florida
One more factor that has caused higher insurance rates in Florida has been the exodus of several national carriers. Since 2022 over 30 companies have either left or greatly scaled back their coverage in Florida. As we all know, a lack of competition is a major contributor to escalating premiums. Florida has found themselves in a similar plight as California. Fortunately, legislators in Florida have been taking steps to improve insurance costs for homeowners. The last couple of years have seen costs stabilize somewhat.
More Information Is Needed!
While the fact that Florida has no individual state income tax is very enticing there remain other considerations that prevent a move there as "doable". I will be writing another post soon on some of the other hurdles that pose a threat to making relocation a possibility and more consideration must be given to all the costs involved.
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