This Florida metro is the foreclosure capital of the US — here’s what is behind the crisis

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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.

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 in a story published 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.

Florida is prone to natural disasters, including hurricanes, flooding and wildfires, and largely because of this 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.

Major home insurance providers like Progressive, AAA and Farmers Insurance have reeled in some business, as the cost of operating in the state has become prohibitive for many insurers.

In 2024, Mark Friedlander of the Insurance Information Institute told CBS News Miami an internal study that found 15% to 20% of Floridians were forgoing home insurance — compared to 12% across the country.

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However, some real estate experts say the state’s sky-high insurance rates don’t tell the whole story behind the foreclosures in Lakeland. Gate Arty, principal and co-owner at Keller Williams Realty, acknowledges the impact of insurance premiums, but he doesn’t believe Lakeland has a foreclosure problem.

“Distress sales just aren’t a significant piece of our market right now,” he told News Channel 8, pointing out that increased real estate activity in the area can affect the numbers.

For homeowners anywhere in the country that face the risks of natural disasters, it’s critical to take preventative steps to protect your home and bank account in case of a serious incident.

One of the first steps toward financial security in this case is ensuring you can afford your insurance premiums while having a cushion in place in case of unexpected increases or expenses. Setting a healthy budget and sticking to it can give you room to breathe, while an emergency fund can protect you from financial stress.

To make more room in your budget, consider shopping around for a new insurance rate. A few hours spent online or on the phone may yield hundreds of dollars of savings per year that you can use to bolster your finances.

If you’re in need of serious budget relief, refinancing your mortgage or working with your lender to modify the terms of your mortgage can help you avoid defaulting and foreclosure of your home.

“A lot of times, the biggest problem is that the homeowner doesn’t communicate with the bank, and that’s when things really start to spiral out of control,” Miller said.

In the wake of these insurance affordability issues, many Florida homeowners may be considering self-insuring instead of working with an insurance company. However, experts warn against such a step.

Florida’s Insurance consumer advocate, Tasha Carter said in an interview in December, “Homeowners would need a substantial amount of capital in order to insure that they can rebuild their home if it is significantly damaged and uninhabitable,” Tasha Carter, Florida’s insurance consumer advocate, told WESH 2 News in December. “Most homeowners simply don’t have enough accessible capital to be able to make those repairs.”

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.