Damning Warning Issued Over Florida Insurance Market

[Yo_Mama_Been_Loggin]

The major private home insurers that have left Florida in the past couple of years are being replaced by smaller, lower-quality companies whose financial stability ratings wouldn't meet the minimum requirements set by government guidelines, according to a recent study.

The study, led by researchers at Harvard University, Columbia University and the Federal Reserve Board, is yet to be peer-reviewed but was published on SSRN, a website for scholarly papers, in December. It states that new insurers which are replacing the traditional ones in high-risk areas are "less diversified, hold less capital, and 20 percent of them become insolvent."

According to the researchers, the growth of these smaller, lower-quality insurers that are filling the gaps left by the exodus of bigger private companies can be traced back to "a lax insurance regulatory environment."

The Sunshine State is undergoing a crisis in its home insurance sector, with residents currently paying some of the highest premiums in the country. According to the Insurance Information Institute (Triple-I), the average Florida homeowners' premium already stands at $6,000.

https://www.msn.com/en-us/money/markets/damning-warning-issued-over-florida-insurance-market/ar-BB1lBdGB

[enid602]

1. Mess

Somehow I doubt that lenders will accept policies from these lower-quality insurers as proof of insurance. Maybe they shouldn’t. What a mess.

[appalachiablue]

2. Thanks. Def more difficulties for plenty of residents. .

[jimfields33]

3. 6,000? I'm upset to pay 3200 with USAA.

I better be thankful.

[Aussie105]

4. $1,200 was our last home insurance bill.

Those are AU dollars. Around US $800.

Not on a flood plain, not in a bushfire prone area, no history of volcanoes or earthquakes, so low risk for an insurance company.

People in fire/flood prone areas pay a lot more, or find that they can't get insurance anymore.

But when you have a whole state that looks like it will be sinking due to rising sea levels over the next few decades, and coastal high rises falling apart from the bottom up due to rising salty ground water, no insurance company wants to take on that risk.

[jimfields33]

5. That's true. I'm not sure how long I'll stay in Florida

I like it but costs and hurricanes are a bother. Problem is where to go. Each area has their weather issues.

[mitch96]

9. I was watching a PBS program on weather related problems. They said, just as a fyi that one of the least weather related

area in the US is where the confluence of North Carolina, South Carolina and Georgia meet. About 2 hours north east of Atlanta.
https://hazards.fema.gov/nri/map
I've ridden my motorcycle up that way and it's beautiful country.
Georgia taxes are not as favorable as Florida but tolerable. Reasonable real estate prices too..
I don't know about insurance.
YMMV and it sounds like time for a looky loo..
m

[CaptainTruth]

6. And DeFascist hasn't done a thing about it.

[keithbvadu2]

7. It's more important to legislate against transgenders. It looks like easy progress instead of the difficult issues.

[jimfields33]

10. He has finally insisted insurance companies only pay partial roof replacement which will help.

Getting a whole roof that is 20 years old was not a reasonable thing for insurance companies to have to pay for especially each being around 25K. Is it any wonder insurance companies are leaving.

[keithbvadu2]

8. "less diversified, hold less capital, and 20 percent of them become insolvent."

Not a problem with DeSantis' loose regulations.

Start a company, make the big salaries, go bust, and walk away.
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https://www.democraticunderground.com/100217836728

Florida insurance crisis has some homeowners eyeing an exit: 'I almost had a heart attack'.... April 2023
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https://www.bing.com/search?q=desantis+protects+insurance+companies&form=ANNTH1&refig=1d5fffd9dc094151b179364eb4eabfcc&pc=U531

DeSantis protects his insurance company donors.

[onethatcares]

11. but, but, but

the repub dominated Florida legislature had 2 special sessions to deal with this problem. Did you actually expect them to do anything about it

Sure wind mitigation and structural reinforcement are nice but so many of the homes are pre-1990 built that the cost to do such things is prohibitive as hell..

I can't get a major insurer to quote me because my home was built in 1949 and has asbestos siding. The mitigation on that is out of site plus the foundation would have to be brought to 2020 standards. In a word. That's not gonna happen.