Home Insurance rate increases not just a Florida problem

Article fails to mention roofers, lawyers, AOB and fee multipliers.

 

Also cost of materials and labor have tripled---- if you can find the labor.

 

Hmm, I wonder if there is somebody out there who would be happy to do basic construction labor that we spend billions of dollars to try to keep out of our country?

 

I've been quoted 2.5% of value for a brand new storage building. 5% windstorm deductible!! Premium up 350% since original 2022 quote. Absolutely ludicrous. This is a metal box well inland built to new codes with no large trees around it. If I didn't have a mortgage, I'd self insure for wind 100%. It's a racket.

 

If it was a racket the insurance companies would be trying to write as much business as possible and fighting to get your business with lower rates. The real story in Florida is that most don't even care if they write property insurance.

The state run company Citizens is the largest homeowner insurer in Florida. The other companies writing here in Florida are Florida based companies no one but a agent has ever heard of. The other option is surplus companies but they offer no protection from the state if they go under after a storm.

There are a lot of factors involved including roofing scams, litigation, higher property values and coverage and sky high reinsurance.

 

Is that who you want to build your home? I think I will wait in line for a licensed and insured contractor.

 

Most of the name companies use an exchange to write homeowners insurance in Florida.

Mine is with Regency through Tower Hill.

This past week I had an Allstate insurance agent send me a letter with some basic costs and after I called them, sent me a proposal via email that is approximately 400 dollars less a year. I’ll tweak the limits and see where we end up. May even switch over.

I have a 3.5 year old home. I think that’s one big reason I’ve had no issues finding insurance along with being well inland and not in a flood zone. It’s still Florida.

 

Not that your overall points are wrong, but factually speaking Universal is still the biggest insurer in Florida. Not Citizens. They're 2nd

 

I had universal on my beach condo.

 

You forgot the most significant factor.

 

Who do you think the contractor is hiring?

 

I get it, but with the numbers I'm talking about, there isn't really any risk to the insurance companies. My deductible would cover new roofs for the buildings and most of the metal facade. It's like they're billing in advance now for a loss that hasn't or may not happen. It's a self storage. It's not like there's an interior of a new custom home to cover. But the percentages are higher.

Commercial is much harder to get insured than a home is. Which doesn't make sense.

 

The other locales they list are Louisiana and Cali. I would expect rates to go up in these areas as severe weather will impact them more.

My rate has stayed fairly stable in GA (even with cost of material and labor rising). Not sure if that is because of where I live or because of my insurer (or both).

 

We didn't renew our homeowners in 2023 with our old company due to a 300% price increase and went with Citizens. Then 9 months into the year, the state forced us off of citizens and back to...our old company which was now willing to let us pay what Citizens charged us.

 

We got the boot from farmers last year. Paid house off and we haven’t renewed anywhere.
Still Not insured and not sure if we’ll ever do it again on our primary.

 

Florida, Texas, California and Louisiana have all had property insurance problems for years. Other states are starting to raise rates and cancel homes with older roofs now.

 

Having a new home makes it much easier to insure and at a lower price.

 

It will be interesting to see what happens here. Living in a lower risk state with a good insurance company (USAA), I just need it to stay sane for a year or so and then I plan to be out of the home ownership game.

 

Going condo?