Report links climate to higher Florida insurance

Florida homeowners’ insurance premiums rose 75% between 2021 and 2025, nearly double the 38% national increase over the same period, according to a May 2026 report commissioned by the Coalition for an Insurable Future. The report, prepared by economics advisory firm Mandala, tied part of that increase to more costly weather losses linked to climate risk. A May 23 social media post amplified the findings and argued that rising premiums in Florida and other coastal states reflect growing exposure to climate-driven damage. Federal data released earlier this year also showed that households in higher-risk areas already pay more and face more nonrenewals. ### Which report is the post pointing to? The Coalition for an Insurable Future said in its May 2026 report that Florida’s premium growth outpaced the national average from 2021 to 2025. Yahoo Finance, citing the report, said U.S. homeowners’ insurance premiums rose 38% over that stretch while Florida premiums climbed 75%. Mandala prepared the analysis for the coalition, according to the report landing page. The coalition describes itself as a nonprofit focused on insurance affordability and climate risk, and former Republican congressman Carlos Curbelo is among the named participants cited in coverage of the report. ### What does the report say is pushing premiums higher? (finance.yahoo.com) Carolyn Kousky, executive director of the Coalition for an Insurable Future and a contributing economist at Environmental Defense Fund, told Yahoo Finance that inflation, labor shortages and construction costs have raised claims costs nationally, but that climate change poses the larger long-run pressure on insurance prices. She said higher rebuilding costs after disasters feed directly into higher premiums. (coalitionforaninsurablefuture.com) The Yahoo Finance report also said there is no consensus on a single cause of Florida’s insurance crisis. It said the coalition’s report points to increasingly costly weather events, while some industry experts continue to blame years of litigation and higher reinsurance costs. ### What do federal data show about climate risk and insurance costs? The U.S. (finance.yahoo.com) Treasury Department’s Federal Insurance Office said on January 16, 2025, that homeowners insurance is becoming more costly and harder to obtain as climate-related events raise risks for insurers and customers. Treasury said its analysis covered more than 246 million homeowners policies from 2018 through 2022, aggregated to the ZIP-code level. Treasury said households in the 20% of ZIP codes with the highest expected annual losses from climate-related perils paid average premiums of $2,321, or 82% more than households in the 20% lowest-risk ZIP codes. It also said nonrenewal rates in the highest-risk ZIP codes were about 80% higher than in the lowest-risk ZIP codes. ### Why is Florida so exposed? Insurify said Florida’s average annual home insurance cost reached $8,292 in 2025, up 18% from 2024, and projected another 2% increase by the end of 2026. (home.treasury.gov) The company said Florida remains the most expensive state for homeowners insurance in the country. Florida’s geography is a major factor in that pricing. Insurify said the state’s nearly 8,500 miles of coastline leave it especially exposed to severe storms, flooding and tropical cyclones, and it noted that Florida has recorded at least 34 billion-dollar weather events since 2020, citing National Oceanic and Atmospheric Administration data. (home.treasury.gov) ### Are climate risks the only explanation Florida homeowners hear? (insurify.com) Carlos Curbelo told Yahoo Finance that lawmakers are considering relief measures including property tax cuts because insurance costs remain too high even after market-stabilization efforts. The same report said Florida had the highest homeowners’ insurance premiums as a share of household income in 2024, at 4.4% of mean household income. (insurify.com) Treasury and outside analysts have described climate risk as one driver rather than the only one. Treasury said climate-related losses are raising insurer costs and reducing availability in high-risk areas, while Yahoo Finance reported that litigation, reinsurance prices and broader post-pandemic inflation pressures are also part of the debate over why Florida premiums have surged. ### What comes next for readers who want the source material? (finance.yahoo.com) The Coalition for an Insurable Future has posted its May 2026 report online, and Treasury’s Federal Insurance Office has published both its January 16, 2025 report and ZIP-code-level homeowners insurance data. Those documents are the primary public sources behind the claim that climate risk is contributing to higher insurance costs in Florida and beyond. (coalitionforaninsurablefuture.com) (home.treasury.gov)