If your house would cost $100,000 to replace, and the current hurricane predictions suggest that your house is likely to be destroyed by hurricane in the next 50 years, they would have to charge you at least $2,000 a year to break even (in future value -- they can charge less because money in present value has a greater future value as they can invest the reserves).
It actually amazes me how cheap my insurance is given the claims that could happen. We had hail damage from a bad thunderstorm and it cost my insurance company over $20,000 to repair everything -- that's over 20 years of my premimium payments, and I've only had a house 20 years, so at the moment I don't think they are breaking even. My car insurance they are probably ahead on, although I got a $20,000 payment for an accident there as well, so they aren't exactly rolling in dough for my insurance (my wife's had a couple minor things to, so we've probably collected almost $25,000 from auto insurance in our lives).
I don't think it is unreasonable that a person owning a $100,000 house in a zone likely to be flooded or hit by a hurricane in the next 50 years to be paying $1600 a year for insurance to cover their loss.
Note that if you can find a lender willing to front you an UNSECURED LOAN, you can always go without homeowner's insurance and take your OWN chances that, in the next 50 years, the 1600 you save on insurance, properly invested, will cover the cost of replacing your house if you get hit.
That in fact is what the insurers do for you when they offer insurance with WAIVERS. They let you buy insurance for stuff you can't predict at all, like fire, while excluding expensive coverage for things like floods. You can seek that out separately, or self-insure if you think you know better than they do.
If you think the insurance company is making a killing on you for your $1600 a year payment, you should be able to find SOMEONE who agrees with you and is willing to secure your house so you can self-insure and pocket those obscene profits.
There is no such thing........
$1600 per year on $100K for home replacement is cheap in FL. A more realistic number would be about $3000K per year for such a home. And Citizens had a 25% rate increas on Jan 1, plus another 55% increase in March. That means insurance for such a house would jump to $5800 per year. That's like saying there's a 6% risk of your house being wiped out every year, or your home would likely be replaced every 16 years. You would be paying almost double the principle on your mortgage in insurance costs. That is exploitation on the part of the insurance company.