Florida’s insurance crisis leaves homeowners in jeopardy

America has a dysfunctional lawsuit system? Could it be???

That's right, when a company has to pay out millions of dollars sometimes, it's going to be all the other customers who end up paying.

The only real surprise is this is happening in Florida and not some other Leftist super-progressive place.

 

Just searched in Zillow.
Townhouse for $500k.
Property tax: $500/month.
Insurance: $175/month.

Compared to other states, this is not bad, even now, when the real estate market is red hot.

 

Of course things are cheaper in the middle of nowhere and same it true in any state or country. Insurance companies are leaving because our laws are hostile towards them and then people are stuck with Citizens which is very expensive.

 

That I hope those people continue to inhabit the large cities and leave the rural areas alone.

 

LOL. Townhouses have HOA which include insurance for the structure. Want to buy a condo? New condo HOA is around $800 per month aka almost $10 000 per year, and you still need insurance to cover things other than structure.

Someone has to keep the economy going so others can hide in the sticks.

 

These people out here in the sticks are what enable people like you who moved your ass to Florida and complain about it to live comfortably in Florida.

Don't cuss farmers and those who support an agricultural economy with your mouth full, ingrate.

Feel free to move back wherever you came from and take Florida off of your username. And don't even think about putting a salt Life sticker on the back of your electric car

 

Maybe I'll just do whatever the heck I want and tell Fatbbacks in the sticks to pound sand.

Some people......

 

Well I understand the issue as a news story, but I suspect the problem is localized. Do you live on the coast?

 

You do that.... Enjoy your postage stamp size lawn stacked next to your neighbor's house like a sardine in a can and enjoy sitting in traffic 90% of the time you're behind the wheel. Lol.

I'll enjoy the wide open spaces and clean air and the ability to get across town in a matter of minutes.

 

What laws? Be specific.

 

I know building codes have changed and been updated in Florida. Are they still permitting wood framed houses?

 

I live in Florida and this is news to me as nobody has had any problems in what I see. Construction is booming and any house that goes up for sale is sold within a few days on Zillow. This must be an issue in Hurricane zones that are a few miles from the ocean areas possibly by low rate insurance companies.

 

+1

Haven't heard the first thing about it. If you want to live right on the beach that's a reality you have to deal with. I'm 50 miles inland from the Gulf and hurricane Irma still did a number here.

But hurricanes are nothing new and insurance companies already Factor those in

 

No, the issue is the reality of the situation and it has nothing to do with me personally.

I'm afraid you'll just have to read the OP like everyone else.

All of Florida is hurricane zone, but I am sure that's news to you too. As for the coast, over 80% of the Florida population lives on the coast, but if you read the article, the hurricanes are not the biggest problem for insurance companies, because they just hike the deductibles. My hurricane deductible is about $8000.

 

I can only read what you posted, the link is behind a pay wall. So please enlighten us, what laws make it hostile to insurers that differ from other states?

 

LOL You really think that deductible protects the insurance company from major losses from hurricanes?

 

Move to California.

 

If there's so much money to be made, start your own company.

You can provide insurance to these people.

If course we all know that would be a highly risky and money-losing deal.

If you are a home owner and don't want to take the risk, and no private company will provide coverage to you, then don't live there.

That's the free market sending a signal that maybe people should not live there. It's too risky. The house might be destroyed.

 

Let me copy-paste from the 1st post in the thread.

"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."

If you think it protects someone else, then please share.

 

They are leaving Florida for the opposite reason. I thought that was obvious.

 

That's what you say, but they gave other reasons.

They don't think the Florida market is as free as you think. They say its rather oppressive, and THAT is the main reason for their exodus.

 

Paying your $8K deductible is a drop in the bucket for hurricane damage. You must be new to this. You seem to think that deductible protects the insurance company from massive losses. In many states that are in a hurricane zone, insurance companies leave after storms, some come back years later. They can receive hundreds of thousands of claims from a storm, and most of that damage is going to exceed the deductible. Get a calculator and come back and we can go over it.

You still haven't provided "laws" that make it hostile in Florida. Sounds like most Florida natives here don't know what you're talking about. I see an agenda here, maybe you'll find anything to gripe about because you don't like Desantis. Did you know you didn't have to move there?

 

Just found a single family home in that area for the same price and the insurance and property tax amounts are pretty much the same. Zillow is available online and you can check it yourself.

If this was the case, then why did it take the law 100 years to start impacting insurance companies? And why only in south Florida? I see no signs of such problems in the Tampa area and haven’t heard of anyone having to switch insurance companies.

I remember seeing some leftists trying to scare people away from moving to Florida by writing articles about dangerous flora and fauna in this climate (alligators, snakes, spiders, and sharks are the usual offenders), some are writing that property taxes are insanely high (something my own relatives took at face value), and now we see claims that it’s difficult to obtain insurance in Florida. I guess, it’s a good thing that there are so many fears being spread about moving to FL - when you switch states or countries you need to be absolutely sure that you are making the right move, otherwise you can find yourself living a miserable life in your new home.
I made the move more than a year ago and to this day every time I walk into my yard I catch myself thinking how much I love this state. Only those who are determined to become happy here will achieve this goal.

 

No, I am not new, but since this conversation is flying over your head, its best to just let it go.

Zillow? Seriously?

Why on earth would I lie about this? I live here, and insurers have told me that they are pulling out and will not renew, and then your only option is Citizens and have to spend money for a 4-point inspection, and wind mitigation, and then Citizens will give a quote, and it can be extremely expensive.

See chart below. 200K houses don't exist anymore, since the average price here is over $500K. So, yea, you can easily end up paying over $10 000.

 

You live in an area prone to earthquakes, earthquake insurance is going to be expensive.
You like in an area prone to tornadoes, tornado insurance is going to be expensive.
You life in an area prone to flooding, flood insurance is going to be expensive.
You live in an area prone to hurricanes, flood, wind and other perils insurance is going to be expensive.

You file claims for damages on a regular basis, or claims for large ticket items, your insurance is going to increase, and everybody else's premiums will go up also. Increasing your deductible will help a little. Not filing claims also helps. Living in a place not prone to natural disasters helps even more....