A Florida TaxWatch report found that property insurance rates in Florida have surged 42.5 percent since 2019 due to hurricane damage, litigation, and reliance on state-run insurers, posing a risk of further increases and financial strain on homeowners if market stability isn’t achieved.

A new report shows that insurance rates for property owners in the Sunshine State have increased exponentially over the past few years.

Florida TaxWatch released an in-depth analysis of Florida’s property insurance market, examining underlying factors contributing to its instability and 42.5 percent rise since 2019. These include damages from hurricanes and litigation, which have put pressure on insurers and forced some to leave the state.

According to the report, Florida’s property insurance market is fragile and reliant on state-run insurers as a backstop for homeowners who have no other options. Despite being a last-resort insurer, the Florida Citizens Property Insurance Company insures at least 17 percent of the state’s property insurance market and is also the most expensive*.

According to a 2021 report from Florida TaxWatch, approximately 70 percent of Floridians live in coastal counties and are at risk of chronic flood damage. The report points out that as sea levels rise, more properties are put at risk. This equates to around 64,000 homes, with an estimated value of $26 billion, at risk of severe flooding.

Florida TaxWatch estimates that by 2100, over 1 million homes will be at risk and this increased risk will, in turn, increase property insurance rates even further. Unless the insurance market is stabilized, the high rates could push some residents to leave Florida.

Florida outdoes every other state in insurance costs, accounting for 10.8% of all premium costs in the U.S. According to the report, premiums vary between counties, ranging from $1,824 in Sumter County to $8,162 in Monroe County.

Since 2019, the Legislature has passed a series of reforms in an effort to combat insurance fraud and ease the burden on insurers. The report notes that legislative efforts are beginning to show promise. However, it also advises that lawmakers remain vigilant to prevent the market from spiraling and work to enhance resiliency.

Florida TaxWatch recommends that Florida limit its reliance on Citizens by depopulating the number of policies it holds and encouraging new private insurance companies to enter the state.

* Editor’s Note: Representatives for Citizens contacted The Capitolist to state that Citizens is not the most expensive property insurance provider in the state. Data supporting this can be found here. This article was syndicated from a third-party source, The Center Square.