400,000 FL Property Insurance Policies Cut In Past Yr, But Yes, Governor, Gay/Trans The Real Crisis

[hatrack]

Florida is facing a property insurance crisis so dire that Gov. Ron DeSantis (R) has ordered state lawmakers back into a special session next week to fix it. That’s because the Republican-run legislature squandered weeks of the regular session trying to control what teachers and corporations can say and do instead of addressing a mess that alarms millions of Floridians: a meltdown in the home insurance market.

EDIT

But first, let’s look at what Floridians face: skyrocketing property insurance premiums, up 25 percent from 2020 to 2021 on average, but in some cases tripling in one year, according to the Insurance Information Institute, a nonpartisan, nonprofit trade group that tracks industry trends. The average cost of homeowner’s insurance in Florida was $3,600 in 2021, double the rate for the rest of the country. That’s if you can even get insurance. In the past 12 months, more than 400,000 Florida home policies have been dropped, most of them in the past 90 days, according to the institute.

One insurance holding company this week announced 68,200 cancellations. Three other companies have been declared insolvent this year. Florida insurance underwriting losses are projected at more than $1.6 billion for 2021. “It’s the most volatile property insurance market in the country, and it’s headed for collapse,” says Mark Friedlander, the institute’s spokesman. Cue the special session.

EDIT

All of this chaos has made private insurance companies reluctant to take new clients. Many homeowners have no choice but to enroll with Citizens, Florida’s state-run, nonprofit insurer. Funded by premiums and taxpayers, Citizens was designed to be a last-ditch insurer, yet it is now the largest in Florida. The 420,000 policies it had in October 2019 have more than doubled. Soon it will top 1 million, according to the insurance institute. If a large hurricane hits Florida, Citizens will quickly deplete its reserves — it had $166 million in underwriting losses last year — and taxpayers will have to make up the difference. Plus, Citizens is limited: It only insures houses valued less than $700,000, or $1 million in Miami-Dade and the Florida Keys.

EDIT

https://www.washingtonpost.com/opinions/2022/05/19/florida-property-insurance-special-session/

[jimfields33]

1. Part of the problem is the roofs

Two things. First some unscrupulous roof inspectors were inspecting roof with a hammer to get clients new roofs. It worked especially in the Orlando area and perhaps other places. Second. Due to this dishonesty, insurance companies started to drop clients with 15 year and older roofs. Insurance companies also raised rate for older roofs over 10 years old. So that’s where we are. Luckily I have USAA and except for a 200 per year price rate hike (still just under 2,000 a year) the last two years, they have left me alone with my 18 year roof. I’m hoping to get two more years out of the roof. In 2024, I expect to pay 18,000 dollars for a new roof on my 2 thousand square foot stucco one story home. Roof prices are insane in Florida. This whole mess in Florida is due to roofs!!

[gab13by13]

4. WTF, I live in Pa. and insurance doesn't pay when I need a new roof.

I hate to tell you but people are charging 18k for a new roof all over the country, depending on the roof and what style.

i did my own roof many years ago when I was young and spry.

Florida obviously gets wind from hurricanes which damages roofs but when you get a new roof put on you should know how long the new roof is supposed to last. Getting a new roof from an insurance company because high winds ruined an old roof seems like a good deal to me. I pay for my new shingles, and we get high winds, rain and snow in Pa. which damages roofs.

[Tickle]

9. CT pays for new roofs

if the wind blows over 50 miles an hour and you lose one shingle the age of the roof doesn't matter you get a new one

[onethatcares]

5. I thought it was sinkholes

that caused the problem, oh that was two years ago. Maybe it's the condos falling into their footprint, or building on wetlands, or too much development, or assigning insurance benefits

There's always a crisis for the legislature to come back into session to create.

Been here 50 years, have yet to see a crisis be wasted by the repuke legislature.

One question; Aside from a tree or something falling on it, isn't making sure your roof is good a part of general home maintenance?

[gab13by13]

8. Exactly, I know how long my new shingles are supposed to last.

OMG, a tree falling on my house? There was a huge Maple tree on my neighbor's property that was struck by lightening, 1/3 of the tree came crashing down, it hit my electric line which swerved it away from my house. It only bent the end of my gutter. My neighbor used his insurance to pay for cleaning up the fallen tree. Then again, after paying the deductible there isn't that much that insurance ends up paying.

[onethatcares]

10. yeah, I own a 1949 model

with asbestos siding that most companies won't touch with a hazmat suit and a superfund site. My deductible for hurricane damage (wind) is $17,000.00. Yearly premium presently $2500.00.

Not sure if the company will be around if something catastrophic goes down.

After Wilma, Charlie and the other storm it seemed everyone wanted to be in the property insurance business. Then the compaines got bmws and new houses elsewhere and the companies folded.

[sop]

6. Over the past two years nearly everyone in my neighborhood has replaced their roof.

I've had dozens of roofing company guys knock on my door to tell me: "I'll go up on your roof and find wind damage...your insurance carrier will pay to replace your roof...all you have to pay is your deductible." The state's Insurance Commissioner's office didn't do anything to stop it because it created roofing jobs and Floridians got new roofs for next to nothing.

[gab13by13]

7. Wow, no way for my insurance adjuster.

That insurance adjuster wouldn't have a job very long if he did that for my insurance.

[gab13by13]

2. What happened to Reagan's famous 9 word joke?

"I'm from the government and I'm here to help." It's not so funny now is it Magats? It sure looks like the private insurance industry can't handle climate change and it will be up to the government to bail people out.

Imagine that, another decades long GQP lie.

[sop]

3. DeSantis will blame Biden. Everything bad that happens in Florida is Biden's fault.

However, DeSantis has been "taking credit for millions of dollars in federal stimulus money he’s handing out to mostly rural Republican counties while at the same time bashing Biden’s big government spending. Federal dollars have bolstered the state budget for two years in a row, shoring up the state’s reserves, and funding such things as the governor’s job growth program, climate resiliency against rising waters, road projects, broadband expansion, college training programs and tax cuts."

https://www.governing.com/finance/ron-desantis-is-taking-credit-for-millions-in-federal-relief