U.S. Congress tackles homeowner insurance crisis in Florida, beyond

Miami – Skyrocketing homeowners insurance rates are gripping Florida and beyond, impacting millions of people who are struggling to keep their homes.

Premiums have doubled over the past three years, raising the concerns of homeowners and members in U.S. Congress whose constituents are on the brink of losing their homes.

Lawmakers are proposing property insurance reform amid the ongoing crisis, especially in Florida which is at a higher risk for powerful hurricanes and storm surge, prompting insurers to pull out of the market.

Those that stayed drove up premiums at the expense of frustrating homeowners who can barely afford the basic living costs.

The rates are so high that some homeowners reportedly are forgoing health coverage and medication, and cutting down on groceries just to afford home insurance.

U.S. Rep. Frederica Wilson (DMiami) is spearheading the Homeowners' Defense Act in an effort to bring an end to the ongoing crisis which is impacting millions across the U.S.

If approved by Congress, Wilsons' Act would bolster state efforts in managing natural disaster risks, support insurance market stability, and encourage mitigation and preventive measures to reduce future losses.

She introduced the measure after convening a briefing last week in Washington, D.C., with other lawmakers and policy experts from around Florida and the rest of the country.

"Everywhere I go in Florida, it doesn't matter what parts folks are from, people are concerned about our property insurance crisis," Wilson said at the briefing. "And with hurricane season just starting, causing a rush through the hearts of South Florida families, the fear of the rising costs of homeowner's insurance is real and tangible for folks. Property insurance has become too expensive, with limited options and many insurers refusing coverage. It's time we tackle this issue head-on."

According to the Consumer Federation of America (CFA), American homeowners saw insurance premiums increase an average of 24 percent over the past three years.

The CFA report found insurance premiums rose twice as fast as inflation between 2021 and 2024.

Typical homeowners nationwide paid $3,303 annually in 2024 for property insurance, but Florida exceeds the national average by paying double.

The highest rate Florida homeowners are paying is $9,462 per year, or $789 dollars per month, the report found.

Wilson's proposal is drawing support from her colleagues in Congress including U.S. Reps. Maxwell Frost (DFL), Troy A. Carter, Sr. (D-LA), Nikema Williams (D-GA), and Jonathan Jackson (D-IL).

Frost said Florida's property insurance crisis is pushing families to make impossible choices.

"I've heard from central Floridians that they are forgoing coverage altogether because they can't afford both healthcare and property insurance," he said during the briefing. "It's a shame that the property insurance crisis has put folks in this position. And it's leading to a dangerous situation as climate change creates even more devastating hurricane seasons."

Experts warn that homeownership in Florida could dwindle amid soaring property insurance rates and threaten potential homebuyers' move to Florida. Some homeowners edly have sold their homes to eschew the high costs and those who zeroed in on Florida as their next destination stayed put elsewhere.

Democrats in the Florida Legislature pushed for reform including proposing an insurance premium cap but the GOP-controlled House and Senate rejected the idea.

In 2023, in a vote that split along party lines, Florida lawmakers passed insurance reform but didn't benefit homeowners, rather making it harder for customers to sue insurance companies to incentivize more private insurance carriers to do business in Florida to relieve Citizens Property Insurance Company.

The state-funded backstop insurer of last resort carries most of Florida's policies, thus, the most liability.