Florida and Louisiana sit at the very top of the most expensive states for homeowners insurance. By the NAIC’s latest report (2022 data), Florida averaged about $2,677 a year and Louisiana $2,603 — and current premiums run well above those figures. Here is why.
The shared driver: catastrophe exposure
Both states front the Gulf of Mexico, the most hurricane-prone coastline in the country. Insurers price the expected cost of catastrophic losses into every policy, and they buy reinsurance (insurance for insurers) to cover the worst years. Global reinsurance prices have jumped — many insurers pay 40–60% more than before 2020 — and that cost flows straight into premiums.
Florida’s extra problem: litigation and roof fraud
Florida had a uniquely broken claims market. For years it accounted for roughly 80% of the nation’s property-insurance lawsuits despite having only about 9% of the claims. “Free roof” schemes and assignment-of-benefits (AOB) abuse let contractors inflate or fabricate claims and sue insurers directly.
| Florida driver | Effect on premiums |
|---|---|
| Hurricane exposure | Highest catastrophe load in the US |
| Reinsurance costs | Up 40–60% vs pre-2020 |
| Litigation / AOB abuse | ~80% of US property suits, ~9% of claims |
| Roof-claim fraud | Inflated payouts, insurer losses |
| Insurer exits / Citizens growth | Less competition, higher rates |
State reforms in 2022–2023 banned post-loss AOB and curbed one-way attorney fees. Litigation fell about 25% in the first half of 2025, and some insurers returned to profitability — but premiums remain the country’s highest.
Louisiana: storms plus insurer insolvencies
Louisiana’s problem is hurricanes plus market instability. After Hurricanes Laura and Ida, several insurers became insolvent or left, shrinking competition. Fewer insurers chasing high-risk homes means higher prices for the ones that remain.
What homeowners can do
You can’t change your state’s risk, but you can shop hard and mitigate:
- Compare quotes every renewal — how to lower your premium
- Strengthen your roof (impact-resistant materials often earn discounts)
- Make sure you’re insured to replacement cost, not over- or under-insured
- See your state’s average and drivers: Florida · Louisiana · Texas
General information, not a quote. NAIC 2022 averages; current premiums are higher. Verify rates with insurers and your state insurance department.