Florida’s insurance crisis leaves homeowners in jeopardy

Its not just cruise lines and Disney who are being driven out of Florida, because insurance companies have already left. All this while the FL leadership whine about masks and ban school books. Wake up folks!

Florida’s insurance crisis leaves homeowners in jeopardy
https://www.sun-sentinel.com/opinio...LKmfD6L2EbCwqcCH1ihrSpkEdRk_fuHPbqGg1s5QuPeJw

The rising cost of homeowners insurance is the biggest risk to the South Florida housing market. As more and more home insurers go bust or drop out of the Florida market, Sunshine State homeowners are paying the price both literally and figuratively. They now have fewer choices and face higher premiums. And it’s getting worse every year.

To illustrate the numbers, United Property and Casualty Insurance Co., which was among the top 10 homeowners’ insurers in Florida, dropped 180,000 policyholders; St. John’s Insurance left 160,000 Florida customers scrambling for coverage; Avatar Property & Casualty Insurance Company gave its 37,000 customers until April 15 to find new coverage; Lighthouse Insurance left 13,000 policy holders in the lurch; and Lexington dropped 8,000 customers. Companies left in business are charging more for policies to offset their risk. Specific neighborhoods in South Florida will see costs of 100-125% above the national average and will have mandatory flood insurance requirements if securing a mortgage.

Many point to fraud and litigation as being the biggest problem for insurance companies. In fact, 75% of home insurance claim lawsuits nationwide were filed in Florida. They specifically point to century-old legislation (FL Statute 627.42 that require the insurance company to pay for all legal fees in the case if it ends up paying out more than the original claim.

 

I have never heard of a single one of the insurance companies mentioned?? They must just have a local Florida business.

 

Florida is very slowly sinking into the Atlantic Ocean and the Gulf of Mexico. I suspect residential homes and commercial real estate in many parts of that State will eventually become uninsurable, as well as uninhabitable.

 

Serves 'em right for leaning Republican

 

LoL "Florida is sinking". lmfao

I didn't know Hank Johnson had an account here.

 

They are the larger insurance companies who are pulling out of the State. We had insurance with one of them, and they said they will not re-new and we had to go with Citizens, which is very expensive. Same happened to a friend of mine, and now he pays $7500 premium + about $7000 in hurricane deductible.

As for the bigger companies like AllState, State Farm, I don't even remember when they still offered home insurance down here.

It is becoming unbearable, when you couple that with sky-high property taxes. In my neighborhood, where most houses are 2 and 3 br it is around $10 000, unless you bought the house a long time ago.

Last year more than 100K lawsuits were filed for property claims. That’s 130-times more than any other state in the country. The stupid FL laws are killing the industry and our politicians spend all their time arguing about masks, race, homosexuals school books. Its absurd.

 

I suggest you research roofing companies that were able to get new roofs for homeowners installed, courtesy of insurance companies. This despite roofs already leaking prior to storms. So, homeowners were happy with roofs for a small co-pay on their part . As for Ins companies, you can't pay out on all of those roofs without either A: increasing premiums or B: leaving the market

I actually know a couple who thought it was great to get a brand new roof for $2500 because insurance covered the other $30k . They knew they had to replace their roof prior to a recent storm as it leaked inside. Now they see a $3500 premium increase and are complaining.

 

I had no idea that homeowners insurance was anywhere near that expensive in Florida. Are they as high in Louisiana and coastal Texas???

 

depends where you live and your type of structure. Also, to what building code is it built? Older homes are not as hardened as modern homes and thus cost more to insure.

 

Florida’s insurance crisis leaves homeowners in jeopardy.

Sounds like a consequence of building in hurricane alley. It is a choice.

 

You can blame it all on Putin!

 

Allstate offers home insurance in Florida.

 

LOL. We had AllState years ago and they refused to renew, and they have done the same to thousands of others as well. If some people still have AllState, its not many.

 

I can't speak for others but since I have it, I assume others have it as well.

 

I am sure some do, but it seems you are missing the point here.

 

Many states in hurricane zones have this problem. When I lived in Louisiana, anytime we had a storm hit, many companies would leave the state shortly after. Insurance companies are in business for profit, not paying out claims. I remember after Katrina, it was hard to find anyone to insure a home and it was expensive. It's all part of the risk unfortunately.

 

I don’t know. I’m by Tampa myself, my home insurance is like $80/month and I do not see any difficulties with insuring my house or my cars.

 

Well if you folks who were NOT born and raised here don't like it remember i-75 always runs back North where you came from

 

I moved to FL from IL over a year ago and to me property tax is extremely low and my insurance is about $80, which is lower than what I was paying in IL. Car insurance is pricey here, but they are required to cover windshield repair, so I kind of understand the hike.

 

What’s the market value? If it’s over $500k then $10k tax is not that bad. Does $10k take into account homestead exemption?

 

He lives in one of the larger areas which has the highest cost of living in Florida.

It's much much cheaper out here in rural Florida.

 

I just wish people would stop moving here and complaining about it. If you don't like it here you shouldn't have moved here.

If you want to move here and make here like where you came from over there we native Floridians entirely invite you to move back over there at your earliest convenience.

You didn't like it there so you came here, now you're trying to make here like there.

You move here and vote for the same things you left there for.... Can someone please remind me what the definition of insanity is?

If Florida is so bad there are several roads that still run north of the Florida border. Get some use out of your Florida state sales taxes and use those roads.

We don't like your kind around here boy!

 

Some of my close relatives are looking to buy a house in West Palm beach. Recently they told me they put it on pause because they’ve heard that property taxes are high there. So, I opened up Zillow, found a property for like $500k or $600k and the property taxes were at about $700/month. They live in MN and already pay a little bit less. I also pointed at homestead exemption and how it literally wiped $300 off my mortgage. They are shopping again.
This is like the best state to live in, I don’t think I’ll ever move somewhere else.

 

I know. If you want to live right on the beach then you’ll pay. If you don’t mind a drive comparable to daily commute then you can still find good deals.

I say that about immigrants too (and there are a lot of these types of immigrants). If you moved to a new place and don’t like it - don’t be a complainer and move to a place where you can be happy.

 

I'm sorry. And the problem is???

This is exactly how the free market should work.

Oh, I'm sorry, those big evil companies trying to stay in business.

You people just want something for nothing. This is yet another example.

If it's too difficult and expensive and risky to live near a flood zone, maybe those people just should not live there.