Florida remains one of the large states where homeowners insurance costs are rising sharply, according to a Newrez analysis of mortgage servicing data.
The report found that homeowners insurance premiums tied to Florida borrower escrow accounts increased 54% from year-end 2021 to year-end 2025. Nationally, premiums rose 64% during the same period, compared with a 17% increase from 2016 to 2020.
The analysis was based on about 1.2 million Newrez-serviced residential mortgage loans originated in 2020 or later and escrowed for homeowners insurance. It found that the average annual homeowners insurance premium nationally reached $2,625 at the end of 2025, up from $1,597 in 2021.
Newrez did not provide a Florida-specific average premium in the report, but it identified Florida as one of several large-population states that recorded significant increases. Texas saw a 73% increase, California rose 69%, Georgia rose 63%, New York rose 57% and Pennsylvania rose 55%.
The increases are significant for homeowners because insurance premiums are often paid through mortgage escrow accounts. When premiums rise, monthly mortgage payments can increase even for borrowers with fixed-rate loans, since the escrow portion of the payment is adjusted to cover higher insurance costs.
The report attributed the national increase to several factors, including natural disaster risk, higher rebuilding and construction costs, inflation in labor and materials, and changes in regional insurance markets. It noted that coastal states such as Florida, Louisiana and Texas regularly rank among the most expensive insurance markets because of hurricane and coastal storm exposure.
The rise in premiums can also affect homebuyers. Homeowners insurance is typically required to close on a mortgage, and buyers often pay the first year’s premium at closing. Higher premiums can increase upfront costs and affect monthly affordability calculations.
The report also noted that standard homeowners insurance policies generally do not cover flood damage, which may require separate coverage in coastal or low-lying areas.
