Why Homeowners Are Paying More and What to Expect in 2025
As vacation homeowners in Central Florida, many of us have felt the sting of rising costs — and when it comes to home insurance, the pain has been particularly sharp. If you’ve noticed an uptick in your premium over the past few years, you’re not alone. Between 2022 and 2024, the average home insurance premiums in Central Florida jumped by about 40%. The question is, what does this mean for you and your investment property?
Central Florida Rates on the Rise
According to data from the Florida Office of Insurance Regulation, Orange County homeowners saw a 40.6% jump, with premiums rising from $2,438 to $3,427. Lake, Seminole, and Osceola Counties weren’t far behind, with increases ranging from 37.2% to 45.5%. For many, this translates into hundreds, even thousands, of extra dollars spent annually on insurance.
But before you panic, it’s important to remember that Central Florida still has relatively lower rates compared to other parts of the state. Areas closer to the Gulf Coast, like Lee and Sarasota counties, have seen even steeper hikes due to frequent hurricanes and rising property values.
Why the Big Increases?
While the state passed reforms in 2022 to tackle skyrocketing legal fees and curtail costly litigation, other factors have continued to push rates upward. Among the most significant is the rising cost of reconstruction — meaning, if something happens to your vacation home, it costs more to rebuild than it did a few years ago.
Additionally, the growing intensity of hurricanes and convective storms in recent years, especially in regions near the Gulf, has caused insurers to adjust their rates across Florida. It’s not just about the storms that have already hit; it’s also about forecasting future risks based on the frequency and severity of these weather events.
What’s Happening on the Gulf Coast?
The west coast of Florida has seen some of the largest premium hikes, especially in counties like Lee, where homeowners saw premiums soar by 47% after Hurricane Ian. This trend isn’t unique to Southwest Florida. Even areas once considered safe from the brunt of major storms are now seeing larger premiums, thanks to population growth, increased density, and, of course, more storms.
So, What Can You Do?
As a vacation home owner, it’s important to take stock of your insurance situation. Here are a few tips to ensure you’re getting the best coverage without breaking the bank:
-
Shop Around: Even with rising rates, it’s worth looking into different insurance providers to find the best deal. Rates can vary significantly depending on your home’s specific characteristics and location.
-
Increase Your Deductible: If you’re able, increasing your deductible can help lower your monthly premium. Just make sure you can afford the higher out-of-pocket cost in case of a claim.
-
Bundle Policies: Consider bundling your home insurance with other policies like auto or life insurance to take advantage of discounts.
-
Review Your Coverage: Make sure your coverage is up to date and accurately reflects the current value of your home and belongings. In a state like Florida, underinsurance is a real risk, especially with increasing rebuilding costs.
-
Ask About Windstorm and Flood Coverage: Florida’s unique weather risks mean that windstorm and flood coverage are critical for coastal and inland properties alike. Make sure these are included in your policy.
The Bottom Line for Vacation Homeowners
While rising insurance rates are a reality many vacation homeowners are facing, there are steps you can take to manage and mitigate these increases. With careful planning and by staying informed, you can protect your investment and ensure that your vacation property continues to be a source of joy and financial benefit.
Are you looking for ways to manage your vacation home investment or need help understanding how these changes affect you? Reach out to me today at [email protected] for guidance on your next steps — whether you’re adjusting to higher insurance costs or looking to explore other real estate opportunities in Florida!