'It's really math': Florida homeowners are self-insuring amid surging costs — but can they afford to risk a 'catastrophic' loss?

Even with home upgrades he's made to lower his insurance costs, he’s still shelling out over $10,000 a year.

"I know a lot of people have seen their premiums go up more," he said.

Up to 1 in 5 Floridians forgoing insurance

Mark Friedlander, director of communications at the Insurance Information Institute, cited to CBS News Miami an internal study that found 15% to 20% of Floridians are forgoing home insurance. That's compared to 12% across the nation.

That may not be so surprising, considering how high insurance rates have been amid a slew of major weather events and several providers fleeing the state. According to Bankrate, as of August, the average annual premium for insurance in Florida is $5,531 for a $300,000 home — nearly two-and-a-half times the national average of $2,270. Some cities in the state have excessively high insurance costs, such as Fort Lauderdale, which has an average annual premium of $8,437 for such a dwelling.

Homeowners are resorting to different options in order to combat housing costs — with some moving to other states while others are opting to abandon homeownership.

Does it make sense to self-insure?

Despite the number of Floridians without insurance policies, Friedlander doesn't recommend this option for homeowners.

"Realistically, those homeowners can't afford to pay for a catastrophic loss to their property out of pocket," he told CBS News Miami.