Home Insurance Costs Are Rising: What Buyers in Central Florida Should Plan For

Thinking about houses for sale in Central Florida? Home insurance costs are rising. Central Florida Realtor Robert Michael explains what buyers need to plan for and how to protect their investment.

Buying a home is one of the biggest financial decisions you’ll ever make—especially when you’re looking at houses for sale in Central Florida. While many buyers focus on price, interest rates, and location, there’s another cost that deserves just as much attention: homeowner’s insurance.

As a Central Florida Realtor, I’m seeing firsthand how rising insurance costs are impacting buyers’ monthly budgets. Let’s break down what’s happening, why it matters, and how you can plan smartly before purchasing your next home.


Why Homeowner’s Insurance Matters So Much


Homeowner’s insurance is your safety net. According to NerdWallet, a typical policy:


  • Covers repairs and rebuilding costs after events like fires, storms, or other covered disasters

  • Protects personal belongings such as furniture, electronics, and clothing

  • Provides liability coverage if someone is injured on your property


In a region like Central Florida—where weather events are part of life—this coverage isn’t optional. It’s essential.


Why Home Insurance Costs Are Rising


Insurance premiums have been climbing nationwide, and Florida has felt the impact even more than most states. According to the Insurance Research Council (IRC), the biggest drivers include:

  • More frequent severe weather events, leading to increased claims

  • Higher construction and labor costs, making repairs and rebuilds more expensive

Recent data shows:

  • 2023–2024: Premiums increased about 14% annually

  • 2025: Increases slowed to around 10%

  • 2026–2027 (projected): Expected to rise closer to 8% per year

While rates are still going up, the pace of those increases is finally slowing—a small but meaningful win for buyers.

The Good News for Central Florida Home Buyers

There’s a silver lining. While insurance costs are rising, mortgage rates have been trending downward, helping offset monthly expenses.

As Michael Gaines, Senior VP of Capital Markets at Cardinal Financial, explains:

“Rising taxes and insurance do create pressure, but they don’t erase the benefits of a lower rate… It’s less about one factor canceling another out, and more about helping buyers layer the right solutions together.”

This is where working with experienced real estate agents in Central Florida makes a difference. Smart planning can keep homeownership well within reach.

Insurance Costs Vary by Location

Not all homes—or areas—are priced the same when it comes to insurance. Your premium will depend on:

  • Home price and rebuild cost

  • Location and flood or storm exposure

  • Age of the roof and major systems

  • Coverage limits and deductibles

That’s why buyers searching for houses for sale in Central Florida should factor insurance into affordability—not just the mortgage payment.

How Buyers Can Save on Home Insurance

If you’re preparing to buy, here are proven ways to keep insurance costs manageable:

  • Shop Around: Compare quotes from multiple insurers

  • Bundle Policies: Combine home and auto insurance for discounts

  • Ask About Discounts: Many buyers miss savings they already qualify for

  • Highlight Upgrades: New roofs, storm windows, or updated systems can lower premiums

  • Improve Your Credit: Better credit often means better rates

Your first year’s premium is usually included in closing costs, but after that, it becomes a recurring expense—so planning ahead is key.

Bottom Line for Central Florida Buyers

Home insurance costs are rising, but that doesn’t mean buying a home is out of reach. The key is being informed, budgeting correctly, and working with an experienced local professional who understands the Central Florida market.

As a trusted Central Florida Realtor, I help buyers navigate not just the purchase—but the true cost of ownership—so there are no surprises after closing.

Work With a Proven Central Florida Real Estate Expert

Robert Michael Diaz
Broker – Owner | RobertMichael.com
Multi-Billion Dollar Producer | 34 Years of Experience
Gulf War Veteran


Office:
Robert Michael & Co – Real Estate Team
618 E. South St. Ste 500
Orlando, FL 32801

Hours:
M–F: 9:00 am – 7:00 pm
Saturday: By appointment only

If you’re exploring houses for sale in Central Florida or want expert guidance on today’s market conditions, let’s talk. Smart planning today leads to confident homeownership tomorrow.