Consequences of Not Having Homeowners Insurance in Florida (2024)

FAQs

Consequences of Not Having Homeowners Insurance in Florida? ›

There are no specific state laws mandating what happens if you don't have homeowners insurance in Florida. However, if you have a mortgage, your lender will likely require insurance coverage. Failing to comply with your lender's requirements can result in defaulting on your mortgage, leading to foreclosure.

Technically, if you don't have a mortgage you can go without homeowners insurance in Florida. But that is not a great idea. If something happens to your home like a fire, a tornado, a burst pipe, or a burglary, you'd have to pay for repairs and for replacing lost or damaged belongings on your own.

Florida law does not require homeowners to have homeowners insurance. However, for most consumers, their home is one of their largest assets and insurance will help to offset the cost to repair or replace the home.

Without this coverage, lenders can withhold payments or even deny loans altogether. Not having homeowners insurance can also have financial implications beyond just legal ones. If an accident or disaster were to occur, the homeowner would be responsible for paying for all repairs and replacements out-of-pocket.

According to the Insurance Information Institute, 15% to 20% of Florida homeowners are forgoing coverage, more than the 12% national average.

If you breach your mortgage contract by not having homeowners' insurance, you might face added costs and, eventually, foreclosure. Defaulting on a mortgage loan means failing to keep the promises you made when you signed the promissory note and mortgage contract.

"Wildfires, hurricanes, sea-level rising—those kinds of risks are generally considered less insurable," Liao said. "In the current market, insurers might still have options and room to operate, but the increasing of catastrophic events is definitely a threat." Liao is quoted several more times throughout the article.

If you're unable to get a policy through the standard market, you may be able to obtain coverage through your state's FAIR (Fair Access to Insurance Requirements) plan. A FAIR plan is a state-run program designed to provide home insurance to homeowners that may be too risky for standard home insurance companies.

One in 13 American homeowners are uninsured – approximately 7.4% – living in about 6.1 million homes. Homeowners earning less than $50,000 per year are twice as likely to lack insurance compared with homeowners in general. Among lower-income homeowners, 15% are without coverage.

When your policy lapses, you'll have to pay for any losses out of pocket. Not all homeowners insurance providers allow for late payments. Having a policy lapse on your record could lead to higher rates or denial of coverage going forward.

What is the new insurance law in Florida? ›

SB 2D (2022), by Senator Boyd, stabilized Florida's property insurance market with pro-consumer measures that improve choice and increase transparency between homeowners and insurance companies to reduce rates over time. The legislation included significant anti-fraud and legal reforms.

How much does homeowners insurance cost in Florida? The average cost of homeowners insurance in Florida is $2,625 per year, or about $219 per month. That's 37% more than the national average of $1,915. In most U.S. states, including Florida, many insurers use your credit-based insurance score to help set rates.

Gov. Ron DeSantis' office confirmed that State Farm Insurance plans to continue its presence in the Florida insurance marketplace after Farmers Insurance declared plans to leave the state.

If you are caught driving uninsured in Florida, you may be required to file an SR-22 with the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). You may also face other penalties, including the suspension of your driver's license and registration as well as a reinstatement fee of up to $500.

Does Florida require home insurance? No. The state does not mandate homeowners to carry insurance for fire, flood, theft or storms. If you have a mortgage, your mortgage lender almost certainly has requirements for homeowners insurance, windstorm coverage and flood insurance to secure their loan.

Three primary factors are driving the insurance challenge. First, natural disasters are becoming more common and costly. Second, the price of reinsurance is skyrocketing. And finally, Florida's litigation-friendly environment compounds the issue by making it easy for customers to sue their insurers.

However, it is important to note that Florida law does impose strict notice requirements on insurance companies. If an insurance company has decided not to renew a policy, then they have a legal duty to provide the policyholder with written notice, detailing the non-renewal, within 45 days of the coverage expiring.