The Florida Homeowners insurance challenge: what every buyer needs to know

If you’ve been shopping for a home in Florida lately, you’ve probably noticed that homeowners insurance has become and of the toughest parts of the process. Florida’s weather patterns make it one of the highest-risk states for property insurers. Rising premiums, limited carrier options, and stricter underwriting guidelines have left many buyers surprised - and sometimes frustrated - once they reach the insurance state of their loan.

As a mortgage consultant, we see how this issue directly affects homebuyers’ ability to qualify and close. Here’s what’s happening in Florida’s insurance market, why it matters, and how we help clients navigate it with confidence.

What’s Happening with Homeowners Insurance in Florida

Florida’s unique weather risks - from hurricanes and flooding to roof damage - have made the insurance market volatile. Over the past few years, many insurance companies have either left the state, stopped writing new policies, or significantly raised rates.

Even well-qualified buyers are finding that their insurance premiums can double or triple what they expected, and in some areas, coverage is difficult to find at all.

For mortgage approvals, this creates a real challenge; since insurance is part of your monthly escrow payment, higher premiums can affect your debt-to-income ratio - meaning some buyers who qualify for a loan on paper might not qualify once insurance is factored in.

How This Impacts Your Home Buying Budget

When calculating what you can afford, most buyers think about principal, interest, taxes, and maybe HOA fees - but insurance can be the wild card. For example, a $350 monthly insurance premium adds more than $4,000 per year to your housing costs. That difference can make or break your budge or even push your approval limits. That’s why it’s critical to get quotes early in the process, not after you’re already under contract.

Our Advice: Always request an insurance estimate before making an offer. Roof age, wind mitigation results, and flood zone requirements can all significantly affect your premium.