Florida homeowners are expected to face a 7 percent increase in home insurance rates in 2024, driven by the state’s vulnerability to hurricanes and severe weather.

Florida homeowners are poised to see their home insurance rates jump by an average of 7 percent in 2024, according to a new economic report published by Insurify, a continuation of recent trends that have pushed the cost of coverage among the highest in the nation.

According to data within the report, the average annual insurance premium in the state is expected to increase from $10,996 in 2023 to approximately $11,759 by the end of the year.

The projected increase is part of a broader trend of rising insurance costs in Florida, driven by the state’s susceptibility to hurricanes and severe weather events. Such trends have placed financial pressures on homeowners and have been exacerbated by an insurance industry struggling with increased claims and a series of company insolvencies.

Insurify’s forecast comes amid early predictions of a strong forthcoming hurricane season, which experts warn could lead to further rate increases in 2025.

“Insurers rely on reinsurance coverage to cede some exposure to losses,” said Betsy Stella, vice president of carrier management and operations at Insurify. “Reinsurance coverage has become difficult to secure in Florida, and reinsurance rates have skyrocketed. Reinsurers are subject to the same factors that impact underlying coverages: an increased number and severity of natural disasters, inflationary pressures, and labor and materials shortages.”

The insurance crisis in Florida has led to market instability, with several insurers leaving the state and others declaring bankruptcy. This turmoil was most evident following the impact of Hurricane Ian in 2022, which caused $109.5 billion in damages in Florida, making it the third costliest hurricane in U.S. history.

In response to the ongoing crisis, the Florida legislature has implemented various measures aimed at stabilizing the insurance market, including reforms to combat fraud and abuse within the legal and insurance systems. However, these efforts have yet to curb the rising costs, leading many Floridians to rely on the state-run Citizens Property Insurance Corp. as their primary or only option for coverage.

State economic leaders, however, see a light at the end of the tunnel.

“You have to give us twelve to eighteen months to see the tide turn. Florida was a little bit of a canary in the coal mine,” said state Chief Financial Officer Jimmy Patronis during a press scrum at the Capitol on Thursday. “You’re seeing the tough decisions that were made here in Florida starting to change the interest in capital coming into the state. I think Florida is on the right path.”