Home insurance premiums in Florida have been the highest in the nation since 2020, averaging $2,794 per year through the third quarter of 2025. Across all home insurance companies, average annual claims have increased by 63 percent since 2020. This is according to a recent report from Florida Tax Watch.
The report, called the Community Economic Research Council’s Cost of Living Index (COLI), looks at commodity prices and the average household’s budget across the country and compares how expensive each state is at a given point in time.
The report listed several interesting facts.
In 2020, Florida had the 16th highest average asking rent. By 2025, it had risen to the sixth highest level in the nation.
Ninety percent of Floridians surveyed said they were either somewhat or very concerned about inflation, or rising price levels over time. Nearly 50% say they have considered moving from Florida because of the cost of living.
Florida’s cost of living continues to outpace both the state’s own historical trends and the broader South region, confirming that residents’ concerns are based on data rather than mere perception.
The 2020s changed everything. Annual cost of living growth was nearly five times higher than the previous decade, with similar impacts on housing, groceries, utilities, childcare, and more.
Housing is leading the surge. Rising insurance premiums, property taxes, and rising rents have made Florida one of the most expensive places to live in the South for both owners and renters.
Inflation has eased, but it has not disappeared. Price growth has slowed from its peak in 2022, with Florida’s income tax exemption providing some offsetting benefits, but costs remain well above pre-pandemic norms.
Florida TaxWatch says state policies need to be strengthened. With national monetary policy as the primary inflationary tool, Florida-level action on housing, health care, and property insurance affordability is essential to keeping the state a livable state for all residents.
