Property insurance premiums in Florida reach an all-time high! Disasters are no longer "abnormal": How to live and prepare in an era of insurance premium inflation

U.S. Home Insurance Costs Rise4.9% in the First Half of 2025 Compared to the Previous Period, Reaching a Record High. It was reported that the increase was significant in disaster-prone areas such as those affected by hurricanes and wildfires. The frequent and severe nature of disasters is simultaneously driving up insurance premiums and underwriting stances. Seeking Alpha

Why "Record Highs" Continue: Three Drivers

1. Changes in the Quantity and Quality of Disasters
   In 2024, there were 27 disasters exceeding $1 billion. This is close to the record high of 28 in 2023, with damages reaching approximately $182.7 billion. Disasters have become "repetitive" rather than "rare" events, raising the baseline for insurance losses. climate.gov

2. High Reinsurance Costs
   Amid a global outlook of increasing insurance losses, reinsurance rates remain high. Swiss Re predicts that insurance payouts in 2025 will reach $145 billion, making it one of the highest years on record. Primary insurance rates are also likely to rise in tandem. Reuters

3. Regulatory and Market Structure Distortions
   In California, the largest insurer, **State Farm, has been approved for an "emergency" 17% increase in home insurance rates**, indicating that regulators are beginning to steer towards ensuring market sustainability. Conditions such as refraining from new non-renewals within the year are in place, alongside strengthening solvency. insurance.ca.gov

Hotspots: Florida/Louisiana/California

• Florida: The average insurance premium is among the highest in the nation. Estimates suggest an average of $15,460 in 2025, placing a significant burden on residents. Although there have been reports of slight decreases in some areas recently, the high non-renewal rate continues to reflect structural concerns. Insurify

• Louisiana: The public pool, Louisiana Citizens, has ended the special assessment of 1.36% early, reducing fees, but insurance premiums themselves remain high. lacitizens.com

• California: Following the approval of a 17% mid-term rate increase, discussions are underway regarding emergency rates and increases in surrounding products post-disaster. In counties prone to disasters, the state's "Sustainable Insurance Strategy" allows for the passing on of reinsurance costs, resulting in a situation where insurance remains but prices rise. insurance.ca.govnewsroom.statefarm.com

Voices on Social Media: How Household Preferences and Behaviors Have Changed

• On Reddit, posts such as **"Renewal with +40%" are frequent, highlighting dissatisfaction with **automatic increases in deductibles** and reductions in coverage that accompany "actual price increases."

"Property value has increased, but coverage amount has been reduced, and deductibles have been raised. And a 40% increase..." Reddit

• Reports of "+30%" increases are also numerous. "It used to go up by $150 each year, but this year it jumped by $900 all at once," expressing confusion over the sudden increase.

"Even when I request disclosure of the contract, the response is slow. Do I have no choice but to switch?" Reddit

• In regional subreddits, discussions about **"revisions to coverage to continue underwriting" and **expanding deductibles are becoming common, with reports of increases like "+32%." Reddit

In Summary: On social media, the sentiment of "insurance is necessary, but I can't afford it under current conditions" is spreading, along with optimization behaviors like expanding deductibles and narrowing coverage.

Investor Perspective: Coexistence of Profit Improvement and "Accessibility Crisis"

In Florida, while reports of industry returning to profitability have emerged, household burdens remain heavy. The balance between corporate profit recovery (reinsurance, rate adjustments, investment gains) and the possibility of customers continuing to subscribe is being questioned. Newsweek

Consumer Defense Strategies: Seven Moves to "Beat" Price Increases

1. Cross-Company Estimates: Compare multiple companies under the same conditions. Understand recent state-specific rates and burden ratios (statistics from sources like Bankrate). Bankrate

2. Redesigning Deductibles: Cover minor damages out-of-pocket, focus on severe negligence and total loss. Consider the impact of past claim history on future premiums.

3. Investing in Home "Resilience": Roof reinforcement, wind and fire-resistant materials, smart detection devices. These may become conditions for insurance premium discounts or continued underwriting.

4. State Incentives/Temporary Exemptions: Florida offers a 1.75% premium deduction during the applicable period, Louisiana has ended the special assessment early, and other time-limited measures should be checked. Insurify

5. Reviewing Coverage Details: Exclude overlapping coverage, adjust **Coverage A** to realistic amounts, and consider separate policies for non-insurable risks (floods, earthquakes).

6. Managing Credit Information: Except in some states, credit scores are a rate factor. The disparity can amount to $1,500 to $2,000 per year according to some analyses. Axios

7. The Option of Geographic Diversification: Consider incorporating the relative climate risks and insurance costs into housing preferences, such as relocating, living in two regions, or renting.

Policy Challenges: Data, Market, Vulnerability

• Stable Supply of Public Data: A decline in disaster tracking and forecasting increases rate uncertainty, which could ultimately be reflected in consumer prices. Bisnow

• Incentives for Disaster Adaptation Investments: Support strengthening home resilience with tax deductions and subsidies to curb the increase in losses.

• "Soft Landing" for Underwriting Withdrawal: Reconstruct state pools and reinsurance support with a balance of fiscal burden and market discipline.

• Accountability: Alleviate consumer distrust with disclosure of rate revision grounds and expedited review (California's emergency rate review is symbolic). Reuters

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