In Florida, around 49 % of Black residents are homeowners. Now, that same group of Floridians is in jeopardy of losing their money or homes due to an insurance crisis years in the making.
On July 14, 2023, it was announced that Farmers Insurance, one of the largest homeowners insurance providers in the nation, was going into insolvency in Florida. This could affect nearly 100,000 policy holders.
This loss adds to the already critical crisis for Black homeowners in Florida. Under Governor Ron DeSantis’s reign, more insurance companies are withdrawing from the state, leaving homeowners vulnerable to either no coverage or rate increases nearly triple the national average.
The payouts and high costs of severe weather damage have taken a toll on insurance companies, many of which had threatened to leave the state for years. Current forecasts call for rates to increase near forty percent.
Florida has the highest homeowners insurance rate nationwide. As this crisis unfolds, Black homeowners are stuck between paying high rates or the thought of selling and fleeing the state. The longer this crisis continues, the worse the outcomes could look for Black Floridians.