Property Insurance Costs Are Contributing to Foreclosures in Florida

Florida homeowners are foreclosing on their homes at an increased rate, and numerous reports suggest that rising property insurance costs are to blame. This comes at a time when many lawmakers and insurance industry insiders are insisting that things are getting better for Florida homeowners. What if you face issues with your property insurance? Can a property insurance lawyer in Fort Lauderdale help?

Florida Leads the Country in Foreclosure Filings

On May 12th, 2026, Insurance Business Magazine reported that Florida had become the nation’s leader in foreclosure filings. An investigation has found that one of the primary drivers (if not the primary driver) of these foreclosures is rising insurance premiums. Other contributing factors include rising debt, higher property taxes, elevated mortgage rates, and higher costs of living.

Insurance Business Magazine also points out that the COVID-19 mortgage relief programs that many homeowners were relying on are now ending. 0.44 percent of all residential properties in the Sunshine States are now in foreclosure, which is higher than in states like Delaware and South Carolina.

Insurance Premiums Are Rising Even as Rates Decrease

Lawmakers and insurance industry insiders celebrated the fact that insurance rates were decreasing in Florida. Although many might have assumed that lower rates translate into lower premiums, this has not been the case. In fact, premiums seem to be moving in the opposite direction, and they are increasing to levels that are no longer affordable for the average Florida homeowner.

More Homeowners Are Choosing to Drop Insurance Before Hurricane Season

With premiums rising and so many homeowners facing foreclosure, it should come as no surprise that self-insurance is becoming popular once again. According to a recent report by CBS News, many homeowners in Fort Lauderdale are choosing to drop insurance as the state heads into what could be a difficult hurricane season. This is despite the fact that most of these homeowners clearly remember the intense flooding that occurred only a few years ago.

Of course, self-insurance is typically only possible for those who are mortgage-free. Lenders require homeowners to carry property insurance, so the percentage of homeowners who self-insure is still relatively low. The cost of insuring a relatively inexpensive home can easily surpass $10,000 per year.

Many journalists and observers like to frame self-insurance as a “choice.” But with the threat of foreclosure looming, homeowners may have no other option but to cut costs wherever they can. Self-insurance is a major risk, but it may be preferable to losing one’s home. Generally speaking, people will do virtually anything necessary to keep a roof over their head.

Contact Our Fort Lauderdale Property Insurance Lawyers Today

At Fuxa & Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Sources:

insurancebusinessmag.com/us/news/property/insurance-premiums-emerge-as-frontline-driver-of-florida-foreclosures-574870.aspx

cbsnews.com/miami/news/south-florida-hurricane-season-homeowners-insurance/