Florida faces the epicenter of the climate change-driven insurance crisis
By Johani Carolina Ponce
Florida has become the state hardest hit by the national crisis in the homeowners’ insurance market, a phenomenon that is leaving hundreds of thousands of families, including thousands of Latino families, in a situation of increasing vulnerability. A new report from Climate Power reveals the depth of the problem: since 2021, more than 858,000 policies have been canceled in Florida, the highest number in the country, while costs continue to rise to unprecedented levels. “For me, insurance went from a few hundred dollars a month to $500 or $600 a month, and that has increased my mortgage payment tremendously,” said Verna Jackson, a resident of Port St. Lucie, on Florida’s east coast.
The combination of more intense hurricanes, increased climate risk, and corporate decisions aimed at reducing financial exposure has transformed access to homeowners insurance into a nearly unsustainable challenge for thousands of residents. “Millions of Americans have felt the impact of increased and canceled homeowners’ insurance policies, and now we have the data that demonstrates how serious this crisis is,” stated Elice Rojas-Cruz, CEO of Climate Power En Acción.
For Latino communities in Florida, particularly in the south and central parts of the state, the situation is even more complex. The state is facing a perfect storm in its real estate market, according to the EFE news agency. Sales have fallen by up to 46%, and prices are beginning to decline due to rising insurance costs and interest rates, a situation that could worsen under new immigration and tariff policies. The western part of the state, hit by four hurricanes since 2022—Ian, Idalia, Helene, and Milton—has suffered the most severe damage. Ian caused $112 billion in damage, according to NOAA, and triggered a premium increase of over 100%, according to Triple-I. In this context, where the average premium already exceeded $6,000 in 2024, the Climate Power report warns that in 2025 costs are rising 38% faster due to the tariffs imposed by Trump, further exacerbating the market’s fragility.
Insurer withdrawals accelerate market instability.
Florida also leads in another worrying indicator: at least 15 companies have suspended issuing new policies or have completely withdrawn from the state market since 2021. In total, 18 announcements of withdrawal or suspension of business have been registered, the highest number in the country.
Among the most significant cases is Castle Key, an Allstate subsidiary, which in 2024 received authorization to increase rates by 53.5%, affecting more than 67,000 condominium policyholders, an increase justified by the company as a result of hurricane-related losses. Progressive, for its part, issued non-renewal notices for up to 115,000 policies, while United Property & Casualty announced its exit from the market, leaving some 185,000 families without coverage.
These moves have created a domino effect: fewer competitors, greater concentrated risk, and premiums that continue to rise. The end result is a system where each hurricane leaves not only physical damage but also prolonged and cumulative financial losses.
A Crisis Exacerbated by Federal Policies
The report also highlights the role of policies promoted by President Donald Trump, which, according to Climate Power, are deepening the lack of affordability. The insurance industry has donated more than $3.7 million to his campaigns and inaugural committees, while his tariffs are projected to increase the cost of homeowners insurance 38% faster by the end of 2025. Tariffs on construction materials alone would increase annual premiums by more than $100, and up to $400 in some states.
Added to this are cuts to disaster recovery and mitigation programs, such as FEMA resilience funding, which, according to experts cited in the report, will drive rates even higher, as insurers pass the increased risk on to homeowners.
A Crisis Demanding Answers
The report concludes with a stark warning: without immediate action, Florida will remain the epicenter of the national insurance crisis. The combination of climate vulnerability, corporate pressure, and political decisions makes an intervention that prioritizes families, not profits, urgently necessary.
“We hope this report will guide policymakers in addressing this crisis before it spirals out of control,” Rojas-Cruz said. The warning is stark: if no action is taken, millions of Floridians, and especially thousands of Latinos, will continue to face a reality where protecting their homes becomes increasingly inaccessible.
