Florida homeowners are self-insuring, but can they afford to risk paying for a 'catastrophic' loss out of pocket?

Core Insights - Rising insurance costs in Florida are prompting homeowners to reconsider the value of their property insurance, with some even debating whether to forgo it altogether [1][2] Group 1: Insurance Trends in Florida - Approximately 15% to 20% of Floridians are currently forgoing home insurance, which is significantly higher than the national average of 12% [3] - The average annual premium for home insurance in Florida is $5,838 for a $300,000 home, which is $3,414 more than the national average [4] - Certain cities, such as Fort Lauderdale, have particularly high insurance costs, with an average annual premium of $10,917 for similar properties [4] Group 2: Homeowner Responses - Homeowners are exploring various options to manage rising housing costs, including relocating to other states or abandoning homeownership altogether [5] - Despite the trend of forgoing insurance, experts recommend that homeowners should remain insured due to the potential financial burden of catastrophic losses [6] Group 3: Factors Influencing Insurance Costs - The high costs of insurance are linked to homeowners opting for surplus line insurers, particularly those with properties at high risk for severe weather [7]