This Florida metro is the foreclosure capital of the US — here's what is behind the crisis and what you can do to protect your home

A number of factors may be contributing to this figure — including a population influx — but one common theme experts pointed to was the price of home insurance.

“When those insurance premiums start kicking in, they can’t make the payments, they just don’t know what to do,” Bob Miller, a real estate broker, told News Channel 8 in a story published March 27. “So a lot of them, for lack of a better term, they curl up in a little bit of a ball and they wait in a corner for someone to knock on the door. That’s not the best option.”

Here’s what’s behind the high insurance rates, and what you can do to protect your home wherever you might be.

Homeowners' insurance prices

Florida is prone to natural disasters, including hurricanes, flooding and wildfires, and largely because of this insurance prices are among the highest in the nation.

Floridians pay an average annual premium of $5,292 for a home worth $300,000, according to Bankrate. This is nearly two-and-a-half times the national average of $2,267.

Major home insurance providers like Progressive, AAA and Farmers Insurance have reeled in some business, as the cost of operating in the state has become prohibitive for many insurers.

In 2024, Mark Friedlander of the Insurance Information Institute told CBS News Miami an internal study that found 15% to 20% of Floridians were forgoing home insurance — compared to 12% across the country.

However, some real estate experts say the state’s sky-high insurance rates don’t tell the whole story behind the foreclosures in Lakeland. Gate Arty, principal and co-owner at Keller Williams Realty, acknowledges the impact of insurance premiums, but he doesn’t believe Lakeland has a foreclosure problem.

“Distress sales just aren’t a significant piece of our market right now,” he told News Channel 8, pointing out that increased real estate activity in the area can affect the numbers.

Protect your finances from foreclosure risks

For homeowners anywhere in the country that face the risks of natural disasters, it’s critical to take preventative steps to protect your home and bank account in case of a serious incident.