Future of home insurance in Florida

[Anonymous]

How can any insurance company afford to stay in Florida at this point? The entire state is becoming uninsurable with the increase in extreme weather and rising sea level.

[Anonymous]

If there is enough $$ to be made, well,

[Anonymous]

Multiple insurance companies have, in fact, pulled out of the Florida market.

[Anonymous]

Anonymous wrote:If there is enough $$ to be made, well,

The point is that there isn't enough money to be made, not anymore.

[Anonymous]

Anonymous wrote:Multiple insurance companies have, in fact, pulled out of the Florida market.

+1

Insurance companies are motivated by money, not sentiment. They'll stay as long as they can make a profit. After that, they'll pull out unless mandated by regulations.

[Anonymous]

I pay $8000 wind insurance, no flood insurance in a flood zone X (ie, no flood zone). House is insured up to $350k, which is nothing. So this explains how insurance companies still make money in Florida.

[Anonymous]

My elderly fixed income parents property insurance increased 60% this year. They live in Orlando in a 1500 sq ft 3 bedroom house. Not on the water. Not fancy. They’ve lived in Florida since they were kids - not snowbirds.

They were able to shop around and find a policy that was more affordable, but still a significant increase over last year.

The next question is going to be, what’s going to happen to all the Florida residents who can’t afford insurance?

[Anonymous]

Anonymous wrote:

Anonymous wrote:If there is enough $$ to be made, well,

The point is that there isn't enough money to be made, not anymore.

+1. I think six flood insurance carriers in Florida declared insolvency in the past year, which meant lots of cancelled policies and people struggling to find new flood insurance carriers.

[Anonymous]

What you will find is that insurance carries will stop covering homes built before 2004 - before stricter codes came into play. It won't be a full withdrawal from FL but will be a serious look at mitigation, elevation, etc. There are private flood insurance groups popping up that are creating models to estimate risk at the property level. We'll see how they play out after this event.

[Anonymous]

Question:

Will other people (like in Md, VA, DC, KS, MT, wherever!) have higher insurance rates b/c their insurance companies have to pay out a lot of claims in FL?

Do the companies "spread" the costs to other customers who aren't affected by the hurricanes (when the companies renew the policies over the next year or two)?

[Anonymous]

Most people don’t have flood insurance so they are screwed

[Anonymous]

They will probably just require certain conditions in order to insure. So, houses must be built on stilts, etc. It’s like how in a regular home, you can’t have knob and tube wiring and expect to have a normal insurance bill.

[Anonymous]

Anonymous wrote:Question:

Will other people (like in Md, VA, DC, KS, MT, wherever!) have higher insurance rates b/c their insurance companies have to pay out a lot of claims in FL?

Do the companies "spread" the costs to other customers who aren't affected by the hurricanes (when the companies renew the policies over the next year or two)?

We shouldn't. If you think you do shop around. Most insurers don't sell in Florida. Their state insurance program (i.e. insurer of last resort) not covers a million properties

[Anonymous]

Anonymous wrote:

Anonymous wrote:Question:

Will other people (like in Md, VA, DC, KS, MT, wherever!) have higher insurance rates b/c their insurance companies have to pay out a lot of claims in FL?

Do the companies "spread" the costs to other customers who aren't affected by the hurricanes (when the companies renew the policies over the next year or two)?

We shouldn't. If you think you do shop around. Most insurers don't sell in Florida. Their state insurance program (i.e. insurer of last resort) not covers a million properties

my insurance is USAA and they do insure homes in FL. I just don't want my HO insurance to be jacked up b/c of claims in FL.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Question:

Will other people (like in Md, VA, DC, KS, MT, wherever!) have higher insurance rates b/c their insurance companies have to pay out a lot of claims in FL?

Do the companies "spread" the costs to other customers who aren't affected by the hurricanes (when the companies renew the policies over the next year or two)?

We shouldn't. If you think you do shop around. Most insurers don't sell in Florida. Their state insurance program (i.e. insurer of last resort) not covers a million properties

my insurance is USAA and they do insure homes in FL. I just don't want my HO insurance to be jacked up b/c of claims in FL.

You can always not renew, state farm and all state have left florida