MIAMI / SACRAMENTO — May 6 2025
If you’re house‑hunting in the Sunshine State or Golden State this year, brace for a second sticker shock: insurance.
Florida:
- Citizens Property Insurance Corp. has proposed an average 14 % hike for 2025 homeowner policies, pending regulators’ approval.
- Gov. Ron DeSantis points to “new entrants and lower rate filings,” but hurricane Helene already racked up $1.2 billion in insured losses and 12,500 Citizens claims—evidence that volatility is far from solved.
- Senate Bill 2A’s litigation reforms shaved an estimated $500 million off Citizens’ premium need, yet the carrier still says rates must rise to curb growth.
California:
- Multiple majors (State Farm, Allstate, American National) have paused new policies; departures accelerated after the Los Angeles wildfires.
- Insurance Commissioner Ricardo Lara issued a one‑year moratorium on non‑renewals in fire‑scarred ZIP codes.
- The state’s last‑resort FAIR Plan won approval to levy a $1 billion assessment on insurers to stay solvent—costs that will be passed to homeowners via fees.
What this means for buyers
| Scenario | Extra annual premium (rough range) | Mitigation tips |
|---|---|---|
| FL coastal home, $500k rebuild | $9k → $10.3k | Shop surplus‑lines carriers early; ask for roof‑strength credits |
| CA wild‑urban interface home, $700k rebuild | $6.8k → $8k incl. FAIR fee | Clear 100 ft. defensible space; inquire about parametric wildfire cover |
Bottom line: Even if mortgage rates fall, insurance line‑items are marching the other way. Get written quotes before you sign a purchase contract, budget 10‑15 % annual increases for the next two years, and consider higher deductibles paired with a home‑repair emergency fund.
