It’s not a government problem to fix unless they created it.
“It’s not a government problem to fix unless they created it.”
The courts and FILLED with legal actions against Insurers. Some type of tort reform is needed, so, I see it as a GOV problem.
Living here in Florida all my 60+ years, the State Government did nothing over the years, the local governments allowed homes to built on land that was once swamp land in low lying areas.
A sizeable percentage of people moving to Florida want to live as close the ocean as their finances allow which leads to more homes getting destroy when a hurricane comes thru which it eventually will if you live in Florida long enough.
City and County Governments issue permits for housing, and that includes in flood prone areas.
State, County and City Governments issue building codes and building code compliance affects insurance rates.
The majority of county and city government revenue comes from property taxes. A collapse in housing prices would devastate most local governments.
State and Federal government regulates insurance.
So, government allows housing to be built in flood prone areas, issues building codes that allow buildings to be built that will not withstand hurricanes, has a subsequent withdrawal by insurance because of the severity of claims after hurricanes, which ultimately leads to the collapse of local governments. Sounds like a government problem to me.
Another big issue down here is that government had regulations where HOA’s for condos were required to have reserves for maintenance but allowed HOA members to vote on whether to actually collect them. The result is that very few condo HOA’s have maintenance reserves. So then an apartment collapses in Miami that makes the national news, so the State changes the law to say that the remaining life of the components of a building and the cost of maintenance needs to be performed every few years by a licensed 3rd party contractor, and HOA’s can no longer vote to not collect the funds. This law just went into effect, and Condos have until Jan 1, 2025 to have the audits and reserves. What this means is that 90% of the condos in Florida are going to have special assessments within a year that will be massive because of all the deferred maintenance, and people won’t be able to sell because the special assessment may cost more than the condo itself. This will lead to a massive collapse in the value of condos in Florida, which may also bankrupt a lot of cities and counties.
Thank you. I get so tired of FReepers who demand the State involve itself into private enterprise concerns.
What are they suggesting? That we control the insurance industry like Obama did with health care?
I think Charlie Crist did a lot of damage in the homeowner insurance sector when he was Florida Governor. And the Florida legislators went along with it.
Government is responsible for much of the problem by over regulation. The vast majority of claims are in the coastal areas, but the insurance companies aren’t able to price their premiums accordingly. The political class and their supporters make sure the pain is spread in a socialistic manner due to their use of those coastal areas. The next big problem if FRAUD which is aided and abetted by the Florida Bar Association and, once again, the state government. In my time here it’s been one fraud after another. We get a lot of lightening so there are a lot of claims for electronics (real or not). Then there was the sink hole scam, then the water damage scam, then the roof scam, and it never ends. The auto injury scams are just unbelievable,and there’s not much being done about that either. It will take a concerted effort by the state, the Bar Association, and law enforcement to get the situation under control, but too many are making too much money with the the status quo to have much hope of change.
Government is responsible for much of the problem by over regulation. The vast majority of claims are in the coastal areas, but the insurance companies aren’t able to price their premiums accordingly. The political class and their supporters make sure the pain is spread in a socialistic manner due to their use of those coastal areas. The next big problem if FRAUD which is aided and abetted by the Florida Bar Association and, once again, the state government. In my time here it’s been one fraud after another. We get a lot of lightening so there are a lot of claims for electronics (real or not). Then there was the sink hole scam, then the water damage scam, then the roof scam, and it never ends. The auto injury scams are just unbelievable,and there’s not much being done about that either. It will take a concerted effort by the state, the Bar Association, and law enforcement to get the situation under control, but too many are making too much money with the the status quo to have much hope of change.