'Pay it, or roll the dice': Florida residents bunk in their cars as home insurance costs cripple people's finances

Homeowners in Florida pay $4,419 a year, on average, for insurance on a $300,000 dwelling, according to Insurance.com — which is painfully high when compared to the national average of $2,601.

That equates to an eye-watering average $368.25 home insurance bill every month — on top of other housing expenses like a mortgage, utility bills and so on.

For some in the Sunshine State, that cost is too much to bear.

“This is my home,” Ann Rose, a senior who lives in a minivan in North Fort Myers, told NBC2 News. “My insurance on my vehicle is my home insurance.”

Here’s why Floridians like Rose are being forced to take such drastic measures.

An insurance 'crisis'

The word “crisis” is a favorite among commentators describing Florida’s home insurance market, which has seen a huge drop in insurance availability and a counter surge in prices in recent years.

This has left many homeowners in the state struggling to find financially feasible insurance options, leaving some to face an impossible choice.

“You either pay it or you roll the dice,” Phil James of Lee County told NBC2 News. “If a catastrophe does happen, you'll lose more.”

There are multiple factors, both natural and man-made, that have driven up the cost of home insurance in Florida.

First, extreme weather like hurricanes, tropical storms and flooding have triggered historically high catastrophe costs in recent years. And with sticky inflation, elevated interest rates, labor and material shortages, the property insurance claims as a result of those weather disasters have grown more expensive and tougher for insurers to manage.

On top of that, insurers in the state have struggled to cope with excessive fraud and costly litigation, often revolving around bogus property damage claims. Florida is said to account for 79% of all homeowners insurance lawsuits over claims filed nationwide — and yet Florida’s insurers receive only 9% of all U.S. homeowners insurance claims, according to the Florida governor’s Office.

Up against such challenges, insurers have struggled to run viable businesses in Florida and several have exited the state, either by choice or through liquidation. Those still soldiering on have hiked their rates and become far more selective about what risks they’re willing to insure, leaving some residents in a tough bind.

Finding a fix

Floridians who find themselves barred or priced out of the conventional insurance market can access coverage through the state-backed insurer of last resort, Citizens Property Insurance.