Average FL Home Insurance Premiums Near $12,000; State-Run Last-Resort Insurers Take On Trillions In Risk

[hatrack]

The average premium for US homeowners insurance is expected to hit $2,522 this year, up 6% from the end of 2023. Premiums in Florida will approach $12,000. The average premium for homeowners insurance in the US is expected to hit $2,522 by the end of the year, driven largely by intensifying natural disasters, rising reinsurance costs and higher fees for home repair, according to Insurify, a Massachusetts-based insurance-comparison platform. That figure would represent a 6% increase over the average US premium at the end of 2023, and follows a roughly 20% increase over the past two years.

“Many Americans are motivated to buy a home because they think their housing costs will remain fixed or stable when compared to renting,” says Cassie Sheets at Insurify, who co-authored the analysis. “But this trend of significant insurance rate hikes makes housing costs more unpredictable.”

Home insurance is becoming a flashpoint in the US as damage from thunderstorms picks up and as climate change increases the frequency and severity of natural disasters. In the 1980s, the country experienced about three disasters a year that caused damages of at least $1 billion each. In the 2010s, that climbed to 13 per year, according to the National Oceanic and Atmospheric Administration. Last year, the US endured a record 28 weather and climate disasters that caused at least $1 billion in damages each.

Responding to climate-induced threats, a growing number of insurance companies are pulling out of California and Florida, where those impacts are frequently felt. To fill the gap, state “insurers of last resort” are absorbing trillions of dollars in risk.

EDIT

https://thinc.blog/2024/04/01/home-insurance-jumps-again/

[brewens]

1. It wasn't too long ago I saw my first come to Florida commercial. They were crowing about the lack of

income tax mainly.

That's one thing that should be considered when these people have their hand out after the next disaster. Should we presume they all saved enough on income tax to buy their own bootstraps? I'd say so.

[bucolic_frolic]

2. Will it be worth it to insure an old home?

In a natural disaster, will Florida have the construction labor to rebuild anything? I mean since most have been deported.

[Old Crank]

4. Construction is already

having trouble with workers leaving the state. It will only get worse.

[Old Crank]

3. Will the cost of house insurance negate not having state income tax?

Probably not for people you have family incomes under $100,000. Media houshold income in FL. was just under $60 K last year.
How is Florida(ians) going to shoulder the losses they have taken on with their state insurance company? Many people are going to be wiped out in the next disaster because they will have to go without insurance. People coiuld be pushed out of houses because they can't afford/get insurance and are required to have it with mortgages.
And it will only get worse.

[NCDem47]

5. It's not just homeowner's insurance...

It's flood, auto, health, boat, umbrella liability insurance---all of it. Some of the highest rates/increases in the nation. Plus, higher property taxes and rent. Florida loves their fees too. Don't be fooled would-be transplants, lack of state income taxes does NOT make Florida "cheap", no matter what Republicans tell you.

[NoMoreRepugs]

6. The little general duhhhhhSantis will blame it on Disney/gays/Dr Fauci or the

woke insurance companies.

[radical noodle]

7. Surely this must just be in certain locations

We're in central Florida and our premiums aren't anywhere near that high, and in fact are in line with the US average in the article.

[3Hotdogs]

8. I would guess inland Fl. would be cheaper to insure than coastal. Hurricane strength diminishes as it moves inland.

I live in N.J. Our house is 92 year old, brick, two story, 12 rooms. Premium is $2,929.

BUT

The company just applied to the state board for a 25% increase. They will likely be approved for 10 -15%.

[radical noodle]

9. That would make more sense

and we had no desire to live on or very near any beaches.

[pscot]

10. But if the state is taking on the risk

doesn't that mean state tax money will be used to subsidize insurance coverage in high risk areas? It sounds like Florida's tax payers have been volunteered as insurers of last resort.