In 2025, Palm Beach County homeowners face an average premium of around $8,400 per year to insure a $300,000 property—nearly four times the national average. This steep cost is compounded by rising taxes and mortgage bills, making every renewal feel like a financial blow. According to the Florida Office of Insurance Regulation, these rising premiums stem from a surge in reinsurance costs and the ongoing insurance crisis.
So, why are premiums so high, and how can you save? This guide breaks down the factors behind these soaring rates and provides seven actionable strategies to lower your premium. Whether you’re preparing for hurricane season or simply seeking ways to manage your costs, this article offers clear, local insights tailored to Palm Beach County homeowners.
Why Did Palm Beach Insurance Rates Surge Between 2017 And 2024?
Between 2017 and 2024, average coastal homeowners’ insurance premiums in Palm Beach County nearly tripled. This sharp rise was driven by a combination of storm-related claims, legal abuse, and mounting reinsurance costs that destabilized Florida’s private insurance market.
Hurricane Irma in 2017 and Michael in 2018 triggered billions in claims across South Florida. Each storm season brought more damage, and reinsurance premiums climbed in response. By 2022, many carriers were paying 40 to 50 percent more for reinsurance compared to 2019, even if they hadn’t filed large claims themselves.
Legal pressures added to the crisis. Florida made up less than 10 percent of the nation’s property insurance claims but accounted for nearly 80 percent of related lawsuits. Much of this stemmed from contractors using assignment-of-benefits agreements to file claims and lawsuits on behalf of homeowners. This litigation spike increased legal fees, which insurers passed on as higher premiums. According to a 2021 report from the Insurance Information Institute, these legal costs added hundreds of dollars per policy across the state.
The strain forced seven Florida-based insurers into insolvency by early 2023. Companies like St. Johns Insurance and Avatar Property & Casualty failed to remain solvent, and their policies were either absorbed by surviving carriers or transferred to Citizens, the state-run insurer. With fewer players left to spread the risk, remaining carriers raised rates—often by 25 to 35 percent annually for coastal homes.
These overlapping pressures fractured the market. Palm Beach homeowners now face the cost of a system still recovering from years of instability.
Has Florida’s Insurance Market Stabilized Heading into 2025?
Yes, Florida’s insurance market has begun to stabilize, though the recovery remains fragile. Legislative reforms passed in 2022 and expanded in 2023 helped reduce legal pressure by eliminating one-way attorney fees, limiting claim windows, and curbing abuse of assignment-of-benefits agreements. As a result, lawsuit volume dropped significantly in 2024, giving insurers and reinsurers more confidence in the state’s risk environment.
This shift led to more competitive filings. Over 30 insurance companies submitted either flat or reduced rate requests to Florida’s Office of Insurance Regulation in 2024. Seventeen of those filings were for formal rate decreases, reversing the pattern of steady double-digit hikes seen in earlier years.
Private insurers responded. By mid-2025, more than a dozen new or returning carriers had secured licenses to operate in the state. Their arrival expanded market options for independent agents and brought new capital into coastal zones that had been underserved.
The impact was visible at Citizens, Florida’s state-backed insurer of last resort. After peaking at more than 1.4 million policies in 2023, Citizens dropped below one million by the end of 2024. The shift reflected a renewed willingness by private companies to take on coastal risk and reduce the burden on taxpayers.
Premiums remain elevated, but pricing has leveled off for the first time in years. Where Palm Beach homeowners once braced for 20 percent annual increases, many now see single-digit renewals or small rate drops.
What’s The Difference Between Your Regular Deductible And The One For Hurricanes?
Most homeowners in Palm Beach County have two separate deductibles on the same policy. The standard deductible applies to everyday issues like a kitchen fire or a burst pipe and typically ranges from $1,000 to $2,500. But when a named storm occurs—meaning wind speeds exceed 74 miles per hour or a hurricane is declared—a separate hurricane deductible takes effect.
The hurricane deductible is usually calculated as a percentage of your home’s insured value. For example, if your home is insured for $500,000 and your hurricane deductible is 5 percent, you would pay the first $25,000 in storm damage before your policy begins covering costs. This structure is designed to reduce insurer risk during catastrophic events but often surprises homeowners who assume one flat deductible applies across all types of damage.
You can’t change this deductible mid-season. Most insurers lock coverage terms during hurricane season, so any adjustment must be made before summer storms start forming.
To avoid an unexpected financial gap, check your declarations page now. Look for any mention of “hurricane deductible” or “windstorm deductible,” and make sure the amount is something you could realistically afford to pay if a storm hits.
Does Home Insurance Cover Flood Damage In Palm Beach?
No. Standard homeowners’ insurance policies in Palm Beach County do not cover flood damage caused by storm surges, rising groundwater, or drainage backups. If water enters your home from the ground up, you’ll need a separate flood policy to be covered.
If your home is in a high-risk FEMA flood zone and has a mortgage, flood insurance is federally required. But even properties far from the beach can experience flash flooding from stalled storm bands or clogged storm drains. Just a few inches of water can cause tens of thousands of dollars in damage to flooring, drywall, and electrical systems.
Most residents start with the National Flood Insurance Program (NFIP), where typical premiums range from $600 to $1,500 per year, depending on elevation, location, and coverage amount. Private flood insurance has also become more competitive in Palm Beach, particularly for homes built above base flood elevation or located outside special hazard zones. These private carriers may offer higher limits or shorter waiting periods than NFIP plans.
NFIP policies usually include a 30-day waiting period before coverage begins. If a hurricane is approaching, it’s already too late to buy protection. Review your options now, before summer storms begin, and align your flood policy with your homeowners’ insurance renewal to avoid any coverage gaps.
Can Your Insurance Policy Exclude Wind Damage?
Yes. In high-risk coastal areas, some private insurers exclude windstorm or hurricane damage, particularly for homes with older roofs, multiple past claims, or ocean-facing locations. These exclusions are often listed on the declarations page as “wind exclusion” or “no hurricane peril.”
If wind damage is excluded, your home will not be covered for one of the most common and costly storm risks in Palm Beach County. To close this gap, you may need to purchase a separate wind-only policy or move your coverage to Citizens, Florida’s state-run insurer of last resort. Citizens typically accept homes that private carriers reject, though its coverage caps and limited add-ons make it a baseline policy with fewer customizations.
Some specialty carriers in the surplus-lines market also offer windstorm coverage, but these policies often carry higher deductibles and may exclude additional coverages.
You can’t add wind coverage at the last minute. Once a named storm forms in the Atlantic, most insurers issue binding restrictions that prevent new coverage from being written. Check your renewal packet early, and confirm that “Hurricane” or “Windstorm” is listed under your covered perils. If it’s missing, your roof and walls may be exposed when the next storm arrives.
What Lesser-Known Coverages Should Palm Beach Homeowners Review?
Beyond hurricane and flood coverage, a few often-overlooked policy features can make a major difference in your recovery after a storm.
Ordinance or Law coverage pays for the cost of bringing your home up to current building codes after major damage. In Palm Beach County, homes built before Florida’s 2002 code changes may need upgrades like roof reinforcements, higher elevations, or new electrical systems. Without this endorsement, those costs fall on the homeowner.
Sinkhole coverage protects against ground movement that causes structural damage. While true sinkholes are rare along the coast, homes built on filled land or with signs of settlement cracks may still be vulnerable. Some insurers exclude this coverage or make it optional, so check your declarations page.
Personal property limits often cap reimbursements for specific categories like electronics, art, or jewelry. If your policy includes a flat limit, you may need to schedule high-value items separately. Take inventory of your belongings and confirm your limits reflect the actual replacement cost.
Extended replacement cost coverage provides a cushion if rebuilding expenses exceed your dwelling limit. Construction costs in Florida have risen sharply since 2021. A policy that seemed adequate a few years ago may now leave you underinsured.
These coverages are rarely top-of-mind but can determine how much of your loss is covered—and how much you’ll need to pay out of pocket. Review them closely before hurricane season begins.
How Wind Mitigation Upgrades Lower Your Premium And Storm Risk
Florida law requires insurers to offer premium discounts to homes with stronger storm protections. In Palm Beach County, where wind is the primary risk, structural upgrades can reduce your annual premium by hundreds or even thousands of dollars.
The most effective improvements include installing a roof rated for 160-mph winds, reinforcing gable ends, adding secondary water barriers, or replacing windows with impact-resistant glass. Completing a full set of upgrades can reduce your premium by 20 to 50 percent, with savings applied for as long as the components remain in place.
To make these upgrades more accessible, the state expanded its My Safe Florida Home program in 2025. Eligible homeowners can receive a free wind inspection and up to $10,000 in matching funds for qualified retrofits. For example, a $6,000 shutter installation may only cost $3,000 after reimbursement.
Once upgrades are complete, a licensed inspector must issue a new wind mitigation report. This document is required by insurers to apply any discounts. Submit it to your agent as soon as it’s available. The sooner it’s on file, the sooner your premium reflects the lower risk.
If your home still uses pre-2002 roofing materials or lacks opening protection, schedule an inspection before storm season to identify opportunities for improvement and savings.
Why Shopping Multiple Quotes Matters More Than Ever In Florida
In Palm Beach County, insurance rates vary widely across carriers—even for homes with identical features. One company may renew your policy flat, while another quotes a 20 percent increase for the same roof, ZIP code, and wind protection. These pricing gaps reflect how each insurer assesses coastal risk differently.
That variability makes comparison shopping essential. Don’t rely on a single renewal notice. Independent agents can usually provide three to five quotes in one session, including newer carriers like Slide, Orchid, and Mainsail that are actively expanding in Florida’s coastal zones. Ask your insurance broker to include both regional and national options when you request a review.
Price, however, isn’t the only filter. Pay close attention to the financial stability of each carrier. Companies with an “A” rating from Demotech or AM Best have the reserves and reinsurance backing needed to pay claims after a major storm. A slightly higher premium from a strong carrier often provides more security than the lowest quote from a borderline one.
Start the process early. Reviewing your options at least 30 days before renewal gives you time to compare offers and negotiate. If you find a better rate, present it to your current insurer. Many will match or adjust their renewal to retain your business. Even a small reduction, guaranteed for 12 months, can ease the pressure of another high-cost renewal.
When Citizens Is Your Best (Or Only) Option
For many Palm Beach homeowners, especially those near the coast or with aging roofs, Citizens Property Insurance may be the only carrier willing to issue a policy. Created as Florida’s insurer of last resort, Citizens offers coverage when private insurers decline or withdraw from certain areas.
Rates are state-regulated and often lower than private options for wind-prone properties in high-risk zones. But these lower premiums come with trade-offs. Citizens enforce coverage caps, offer limited policy add-ons, and, since 2024, require a separate flood insurance policy for most coastal homes. Without proof of flood coverage, your policy may not renew.
Claims may also take longer to resolve, especially after large-scale storms. Because Citizens spreads hurricane costs across all Florida policyholders, major events can trigger post-disaster surcharges and delayed payouts. Coverage is available, but policy limits and delays may affect your recovery.
Still, requesting a Citizens quote is a smart step—even if you qualify for private insurance. If a private carrier offers a rate within 15 percent of Citizens’ price, state rules often require you to accept the private option. But if no other carrier comes close, the Citizens quote gives you a fallback and a pricing benchmark. Include it in your shopping process to ensure you’re not overpaying and to keep your options open if private carriers pull back.
How Adjusting Deductibles And Coverage Can Reduce Your Premium
In Palm Beach County, where average premiums often exceed $8,000 per year, increasing your deductible is one of the fastest ways to lower your rate. Hurricane deductibles are typically calculated as a percentage of your dwelling limit—commonly 2 or 5 percent. Moving from a 2 to 5 percent deductible can reduce your premium by 15 percent or more, depending on your property and location.
However, higher deductibles shift more risk to the homeowner. For a $600,000 policy, a 5 percent hurricane deductible means you would pay the first $30,000 in storm damage. This strategy works best if you have emergency savings and want to reduce ongoing costs. If you don’t have the cash on hand, the long-term savings may not justify the short-term financial exposure.
Coverage limits also affect your premium. Some older policies are set too high, particularly if you’ve renovated or replaced major systems. Review your dwelling coverage based on current construction estimates—not home sale price. The same goes for personal property. If your belongings would cost $150,000 to replace, but your policy insures $300,000, you’re paying for more coverage than you need.
Start by reviewing both deductibles and coverage limits with your agent. Small adjustments in either can lower your premium without sacrificing essential protection.
Can Bundling Really Cut Your Insurance Bill?
Yes. In Palm Beach County, where premiums often exceed $6,000 or even $8,000 a year, bundling homeowners insurance with auto, umbrella, or boat policies can reduce your total cost by 5 to 15 percent. For many households, that means saving several hundred dollars annually by keeping policies with the same carrier.
Bundling can also prompt a more thorough review of your account. Insurers are more likely to reassess your risk profile when you bring multiple lines of coverage. That includes applying discounts for impact-rated windows, monitored security systems, or recent roof permits that may not have been documented previously.
In addition to lowering your bill, bundling can give you more leverage during renewal. A carrier handling all your policies has more incentive to retain your business. Ask your agent to compare both bundled and standalone options. Make sure your file includes recent upgrades, permits, and protection systems that could qualify for additional savings.
Bundling won’t eliminate Florida’s high premiums, but it can reduce costs without raising deductibles or reducing coverage.
Why Filing Small Claims Can Cost You More In The Long Run
In Florida, insurance companies don’t just track large hurricane payouts. Even minor claims—like a roof leak or water line repair—can impact your premiums or lead to non-renewal. Submitting multiple small claims often signals higher long-term risk, which can limit your access to competitive carriers.
That’s why many homeowners now treat their policies as protection for major losses rather than day-to-day repairs. If you can afford to cover minor damage out of pocket, doing so helps maintain a clean claims record. This helps maintain your current premium and increases your eligibility for better rates.
Preventive maintenance can reduce the need for small claims. Trim trees near your roofline, clear gutters regularly, and schedule annual roof inspections before storm season. These basic steps lower your risk of damage and show insurers that your home is well-managed.
Before filing any claim, review your history and current policy terms. A single unnecessary claim can raise your premium for years or restrict your ability to switch carriers when you need to.
How, Where, and When You Buy Affects Your Insurance Cost
Location plays a major role in your premium. In Palm Beach County real estate, homes east of U.S. 1 or near the Intracoastal carry higher rates due to increased wind and flood exposure. In contrast, inland properties in areas such as Wellington, Royal Palm Beach, or Palm Beach Gardens often qualify for significantly lower premiums due to their elevation and reduced coastal risk.
“When you’re house hunting, think long-term—not just the sticker price,” says Demetrios, a realtor with SquareFoot Homes. “That cottage that’s $50k cheaper on the water can run about $2,000 more every year to insure—roughly 20-40 % higher than a similar inland house. Stretch that over a 30-year mortgage and you’re paying an extra $60k just for coverage.”
Timing also matters. Most insurers freeze new policy issuance when a tropical system enters the forecast. If you haven’t secured coverage before hurricane season, you could face delays at closing or risk falling out of escrow. To avoid last-minute disruptions, start your insurance search early. Aim to collect quotes and complete inspections during the contingency period.
Before committing, verify the flood zone status, roof age, and whether wind mitigation documents are available. Request quotes at least 30 days before closing to keep the process smooth and avoid binding restrictions.
Who’s Writing Coastal Home Policies In Palm Beach Now?
After several years of instability, Palm Beach County’s insurance market in 2025 is showing signs of recovery. While major national carriers like Farmers, Progressive, and AAA pulled back during the crisis, Florida-based insurers have stepped in to fill the gap.
Universal Property & Casualty, Tower Hill, and Citizens continue to cover a large share of the market. Newer entrants such as Slide, Orchid, and Mainsail are also gaining ground by underwriting coastal homes, especially those with updated roofs or strong wind mitigation features.
Some national carriers—like State Farm, Travelers, and Nationwide—still write policies in Palm Beach, but often limit eligibility to newer builds or inland ZIP codes. For homes near the coast or with roofs older than 15 years, these companies may decline coverage or exclude wind damage.
Citizens remain an option for homes that private carriers won’t insure. After peaking at more than 1.4 million policies during the crisis, Citizens dropped below one million in late 2024 as more private insurers re-entered the market. This shift reflects renewed confidence from insurers and more competition for coastal policies.
The market is cautious but functional. Premiums are still high, but homeowners now have more choices than they did in recent years. Ask your agent which of these carriers are actively quoting in your area and whether your home qualifies based on roof age, elevation, or storm protection.
Why Insurance Planning During Escrow Can Make Or Break Your Closing
In Palm Beach County, securing homeowners insurance is more than a closing formality. High premiums, limited carrier options, and storm-related binding restrictions can delay or prevent your deal from closing on time.
Begin gathering insurance quotes as soon as your offer is accepted. Many carriers require a wind mitigation inspection and a 4-point report before binding coverage. Without those in hand, your options may be limited. Aim to have at least one confirmed quote during the inspection period, before your financing or appraisal contingencies expire.
Timing is critical during hurricane season. Once a tropical system enters the forecast, most insurers stop issuing new policies. If your insurance binder isn’t finalized, you may not be able to close. In some cases, the contract could fall through.
Request any recent inspection reports or roof permits from the seller. If there’s an existing NFIP flood policy, check whether it can be assumed to preserve the current rate.
Finally, confirm that your policy start date matches your closing date. Your lender won’t fund the loan without proof of insurance, and a mismatch can cause delays. Work with your agent to finalize all documents well before closing.
FAQ: Palm Beach Coastal Home Insurance
1. What can I do right now to lower my renewal premium?
Schedule a wind mitigation inspection. Features like impact-rated windows or roof-to-wall reinforcements can reduce premiums by 20 to 50 percent. Get quotes from at least three carriers, including newer entrants in Florida’s post-reform market. If possible, consider increasing your hurricane deductible to reduce monthly costs.
2. If a major storm hits, will my insurance company go under?
It’s less likely than it was in past years. As of 2025, most Florida insurers must meet stronger financial and reinsurance standards. If your carrier fails, your claim is backed by Florida’s Insurance Guaranty Association, up to certain caps. Choosing an A-rated insurer helps minimize that risk.
3. Do I need flood insurance if I’m not near the ocean?
Yes. In Palm Beach County, flooding can result from stalled storms and poor drainage, not just coastal surge. Even inland areas can experience flash flooding. Both NFIP and private-market flood policies are available, with premiums in lower-risk zones starting at a few hundred dollars annually.
4. What is a wind mitigation inspection, and how do I get one?
It’s a specialized inspection that evaluates your home’s hurricane resistance. Inspectors assess roof shape, deck attachment, and window protection. Florida law requires insurers to offer discounts for storm-resistant features. Some households may qualify for a free inspection through state programs like My Safe Florida Home.
5. Are insurance companies still leaving Florida in 2025?
The trend has reversed. While several large carriers exited during the crisis, 2024 and 2025 have seen new entrants and returning insurers. Many are Florida-based firms focused on data-driven underwriting in coastal zones. Availability still depends on property type and location, but options have expanded.
Final Thought: In Florida, Your Insurance Plan Is Your Storm Plan
Homeowners in Palm Beach pay some of the highest premiums in the country—and face steep financial risks when coverage falls short. However, the tools to reduce costs and strengthen protection are within reach.
Schedule your wind inspection while the weather is clear. Compare quotes from several carriers, including newer entrants in Florida’s changing market. Read through your declarations page before storm season, and verify that your deductibles, flood coverage, and named perils align with your home’s actual risk.
Start early, review every detail, and make sure your documents are ready before the next storm forms. If a hurricane hits this season, you should already know your coverage is complete and ready to respond.