Why Are Home Insurance Premiums So Unaffordable in Florida?

Chris at Hauseit (https://www.hauseit.com) goes over why home insurance premiums are so expensive in the Florida market, and why even condo unit owners are facing steep increases in their interior only insurance premiums.

Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014.
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Why are home insurance premiums so unaffordable in Florida? Well there are two main reasons. The first one you may have already heard of and that is because Florida is a hurricane prone state. It faces potential hurricanes both from the East and the West, and depending on your view on climate change, severe weather risks may actually increase over time prompting insurers to re-evaluate their risks and to increase their premiums.

The second reason is the high number of costly Insurance lawsuits and fraud in Florida. Florida only accounts for a minority of claims but a vast majority, 79 percent, of all insurance related lawsuits. As you've heard in the news, oftentimes contractors will come to neighborhoods after a severe weather event to ask homeowners to essentially assign their right to file claim to them so then they can typically replace a roof, even when perhaps a total rebuild is not necessary. But they essentially promise a free roof to homeowners and because they have been assigned the right to file claim they'll file a claim for the full amount, and when it's disputed by the insurance company inevitably they will then typically work with attorneys to file a lawsuit for the entire higher amount.

Either way the insurance company loses because they either have to settle out of court and pay the requested full amount or fight costly litigation. This has caused many insurers to exit the Florida market or go bankrupt. In fact for the past two years insurers in Florida have run a significant loss in the billions of dollars range. Fortunately legislation has recently been signed by Governor DeSantis of Florida to help ameliorate the situation. You can learn more at hauseit.com plus you can learn how to save six percent when you sell and two percent or more when you buy with a Hauseit buyer closing credit at hauseit.com.
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Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014.

Hauseit Group LLC, Licensed Real Estate Broker
Tel: +1 (888) 494-8258
Email: team@hauseit.com
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