Fla home insurance cost about to go up?

Mine hasn't gone up(furiously knocking on wood).

 

Now you Floridians get to subsidize Nick Saban's new $17.5 million house.

Nick Saban purchases $17.5 million home on Florida coast

 

His new home has a very nice sectional sofa in Gator blue.

 

Ouch. Not a surprise, but not good

 

Insurance company losses in one state do not affect directly the rates they charge in another state, because the rates are determined separately for each state and approved by that state’s insurance commission.

Heavy losses in one state or states can affect rates nationwide indirectly through increased reinsurance premiums the insurance companies pay.

One issue with reinsurance is that the insurance companies have to pay the reinsurance premium entirely upfront for the coming policy year. They then have to put together an application to increase rates and go before their state insurance commission in order to collect premiums to cover the higher cost of reinsurance. By the time the rate increase is approved it might be time for the renewal of the reinsurance, and that price could be jacked again. So a lot of times the insurance companies are left chasing their tails.

 

You understand better than I but I understood the basics. I think it will increase Florida rates (subject to approval, which is another matter) two ways. Reinsurance, as you note, but also just underwriting. Just back of the envelope speculation, so could be off, but I cannot think of any natural science reasons why an increased incidence of loss causing severe thunderstorms elsewhere will not increase losses in Florida similarly next year or the year after, even if it has not happened yet.

I agree the rate approval process will push back, but that's a fool's errand even projecting out a few years. The losses will just continue to increase naturally, and no amount of tort "reform" legislation is going to keep true risk adjusted rates within range of anything we have become accustomed to.

It's happening all over, but the Florida model of dense coastal growth is unsustainable, may be already. We just haven't accepted it yet due to human nature buttressed by ideology. But we will be able to stop it as well as one can stop onrushing water, which is both metaphorical and literal in this instance.

 

Then they have terrible agents who do not educate the buyer in the difference between the coverages. If your agent doesn't offer flood and explain what it means find a new one immediately. If the buyer is offered and decline then that's on them.

 

Excellent point. We have seen marketing “dumb down” peoples’ expectations: “15 minutes, save 15%”. Insurance is a legal contract - if the price is lower the new company may have lesser coverage or lower limits or both.

There are many, many lawsuits now in Southwest Florida due to Hurricane Ian and the large number of homeowners who did not have Flood insurance - TBD whether the agent offered or not.

 

Switched from Heritage who, in the last 3 years, went from
$1,500
$2,100
$2,700 and this year quoted $4,800.

3-year old roof (we paid ourselves), new siding (Hardieboard), newer windows, HVAC, etc. No claims in 5 years of owning this home.

Switched to Citizens - total premium $2,000 - and we’ll save the difference to pay for the screened pool enclosure if needed.

 

Our agency records every call and we require all of our agents to offer flood and explain it. If buyer declines we have it on record.

South FL has some of the shadiest agencies in the country and it's not close. I'm shocked and appalled at some of the quotes I see from there, but the buyers bear some responsibility as well.

 

I had to do that. Some of them backed out to where the rubber seal lost contact. That was my only complaint.

 

Universal is by far the cheapest quote I got this year. Have quotes from TFIA and Weight for flood. Fairly comparable in cost

 

One California insurance company is using drones to keep an eye on what clients are doing: Insurers use drones to drain homeowners of coverage - Business Insurance. Big Brother is here to stay.

[Thread hijack] - If you do not believe in an omnipresent and omniscient god just look around at what tech is doing. Omnipotent? Seems like that's the battle.

 

It’s because somehow you got past DeSantis! He’ll find you though!

 

Universal is good as long as you don't have a claim. After that, good luck.
We had to hire a lawyer to get them to address our claims. They ignored calls, letters, changed adjusters, in essence did everything possible to avoid the claim. Luckily, we could afford to repair the property ourselves and wait for the lawyers, but not everyone can. I would self insure before I used them again.

We currently have Castle Key.

 

Amica is the best. Don't think they write policies in Florida anymore but we have hadvthem for 25 years. Paid everything I submitted and did it fast