Hispanic Homeowners In Florida Pay 58% More For Insurance Than White Homeowners

GREENACRES, Fla. — A new report is raising concerns about homeowners insurance premiums in Florida, finding that costs tend to run higher in Black and Hispanic neighborhoods than in white neighborhoods.

The report, titled “Redlined, The Persistence of Racial Inequality in the Cost of Homeowners Insurance,” was published by the Consumer Federation of America and examined how homeowners insurance premiums differ from neighborhood to neighborhood across the state. According to the report, across the U.S., Black neighborhoods pay 16% more and Hispanics 30% more than white neighborhoods.

The statement went on further, saying:

“Our position rests on three main principles:

Strict Legal Bans: Florida law strictly prohibits insurers from using race, ethnicity, or demographic traits — directly or indirectly — in setting rates or making underwriting decisions. Rates must be applied neutrally to all applicants who share the same objective risk profile.
 
Actuarial and Risk-Based Pricing: Homeowners insurance premiums are tied strictly to localized risk factors and actuarial data. Geographic differences in pricing reflect localized hazards—such as hurricane vulnerability, flood zones, property replacement costs, housing age, and local litigation or claims history—rather than the demographic makeup of a ZIP code.
 
Rigorous Regulatory Oversight: We require insurers to submit all rating plans and algorithms to our actuaries for thorough review. Under Florida statutory guidelines, we verify that approved rates accurately reflect expected future losses and expenses so that they are never “excessive, inadequate, or unfairly discriminatory.”