Insurance crisis sparks flood of people moving out of Florida: report

Home insurance prices in the state of Florida are forcing many residents to consider moving out of the state altogether, Newsweek reported Monday.

The Insurance Information Institute released a study showing that Florida's insurance premiums are the highest in the country, with residents paying more than $4,200 per year while the national average is $1,700.

The insurance crisis is worsened by some companies deciding to stop doing business in the state altogether.

"Skyrocketing costs are made worse by an ongoing insurance crisis that has seen 15 major insurers, including Farmers, deciding to leave the state over the last year," Newsweek's report stated. "Many cited the increased risk of extreme weather events in the state, which scientists attribute to global warming, as one of the reasons for pulling out of Florida."

The U.S. Census Bureau estimates that 275,666 people left Florida in 2022, with most relocating to places including Georgia, North Carolina, Tennessee, South Carolina and Texas.

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"Due to the insurance rates going up, we have a different financial dream these days," said retired Illinois teacher Joan Keenan, who moved to Florida with her husband two years ago to pursue their "retirement dream."

"Since we moved here our Association fees have gone from $446.00 dollars a month to $656.00," she said.

The exodus could have a significant impact on the state in the near future, experts warned.

"Florida is a growth state and its whole economy depends to a large extent on population growth and job growth," Lesley Deutch, a managing principal of John Burns Real Estate Consulting based in Florida, told Newsweek.

Read more at Newsweek.