Moneywise

Fri, Jun 13, 2025, 3:43 AM5 min read

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One metro area in Florida has attracted attention as the leader of a particular housing category in the U.S. — but it’s no cause for cheer.

The state’s Lakeland region had the nation’s highest foreclosure rate in 2024 among metro areas with at least 200,000 residents, according to real estate data firm ATTOM. One out of every 172 housing units had foreclosure filings.

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A number of factors may be contributing to this figure — including a population influx — but one common theme experts pointed to was the price of home insurance.

“When those insurance premiums start kicking in, they can’t make the payments, they just don’t know what to do,” Bob Miller, a real estate broker, told News Channel 8 on March 27.

“So a lot of them, for lack of a better term, they curl up in a little bit of a ball and they wait in a corner for someone to knock on the door. That’s not the best option.”

Here’s what’s behind the high insurance rates, and what you can do to protect your home wherever you might be.

The U.S. home insurance market is experiencing a double whammy — increasing natural disasters and higher construction and repair costs.

For instance, Florida is prone to hurricanes, flooding and wildfires. As a result, insurance prices are among the highest in the nation. Floridians pay an average annual premium of $5,292 for a home worth $300,000, according to Bankrate. This is nearly two-and-a-half times the national average of $2,267.

Meanwhile, Trump’s tariff policies have made it more expensive to import key construction materials, such as lumber from Canada and lime and gypsum from Mexico.

As repairing and replacing a home has become more expensive, insurers are expected to charge higher nationwide premiums. The average annual homeowners' insurance is projected to increase by 11%, or by $106, to $3,626 by the end of 2025, according to Insurify. In fact, homeowners' insurance rates are expected to rise 38% faster this year compared to 2024.

If you’re concerned about rising premiums, consider shopping around for rates from top insurers near you before tariffs impacts are felt.