Insurance
Mortgages
Commercial Real Estate
Electric Cars
I see a lot of dominoes that seem ripe for collapse.
It’s not a government problem to fix unless they created it.
If Floridians subject to hurricane’s don’t pay for insurance losses who else will? Who should?
And do what exactly?
The same thing happened after Hurricane Andrew. The traditional insurance and reinsurance market could not handle the claims. So the capital markets were used as reinsurance and it took the pressure off. The same thing should happen again as long as you have a functioning market.
If you live in a Hurricane zone, best you can do is build to withstand a hurricane. And if you want to afford the insurance, start a sheetrock company because once that gets wet in a house it all has to be torn out and replaced.
The Florida legislature had a special session over a year ago to fix the insurance problem. It does take time for the fix to take effect, or perhaps more is needed.
I’m glad that I have an almost endless array of coverage options for my home with USAA - I can change it all online without having to clear coverage with a mortgage holder - because the home is free and clear.
newsweak dumping on Florida again?
I partially self-insure (HOA covers the rest) because I’d be stupid not to, and I live a block from the beach.
It’s a market. If insurers want to make money in FL, they’ll start coming down.
Allstate flat out cancelled policies AFTER Andrew and it doesn’t seem anything was done to them. They can still afford a lot of advertising obviously. Why couldn’t they afford to pay the claims back then?
Home owners insurance has skyrocketed here in Florida. DeSantis should have been addressing this crisis instead of galavanting around the country with his ill-conceived presidential run.
Still love my Governor!
Is there any data that says that is true?
I mean, there may very well be increased LOSSES from hurricanes compared to 1950-1970 because of increased population and overbuilding on the coasts - but a lot of the worst hurricanes to strike Florida happened in the 1920s and 1930s, and after Andrew in 1992 it seems like there have been fewer.
Just sayin'
This chaos is also coming to the sales of electric vehicles. The fire hazards of EV’s is going to end the insurability for new EV’s which will prevent anyone from financing a new one.
So here in California it is a similiar issue, excpet its wildfires. Here in the foothills of the Sierra Nevada everyone finds themselves dropped—and Lord help you if you have a mobile home...
So, its the California FAIR Plan, funded in part by insurers in the state, at least those that remain. Anyway, insurance is upwards of 2K a year these days. And inspectors come out to demand changes to your honme and property (Fair enough—I suppose)
Before we lost our insurance and had to resort to the Fair Plan, we were paying $2K /year so w aren’t really paying any more, but its not like the mere few hundred dollars we used to pay days gone buy.
While homeowners’ insurance may “average” 6K per year in Florida vs. a national average of less than 2K, I think that stat is a little misleading b/c of all the multi-million dollar homes on Florida’s coasts. That said, if you are stupid enough to build your “dream” home in a hurricane/flood zone, you deserve to pay through the nose.
And exactly how do you expect anyone in government to “fix” this?
I live near Daytona, and have a 3000 sqft house that was completed less than 2 years ago. My insurance is $18K/year.
Sue Mother Nature, she’s at fault.
I'd be moving as soon as possible.
Other states have extreme weather events. It would be interesting to find out which political party major insurance underwriters contribute to the most. I have a feeling that it would not be the party whose member currently holds the Governor’s chair.
ron didn’t cause the massive inflation of building material prices, supplies and appliances that’s a big driver in the cost of insurance ... nor did he cause the massive increase in building density in florida that raises damages from hurricanes by tens of billions of dollars ... nor did he create an entire state that’s surrounded by oceans and only a few feet above sea level and therefore prone to being destroyed by hurricanes ...
only inflation was a government-created problem, and that was induced by bidenonics printing trillions of “free” dollars ...
the remainder of high insurance costs in florida are mostly a function of geography and weather ... the only REAL solution is for folks to move somewhere else if they don’t like the high cost of living on an ocean peninsula in the gulf of mexico ...