Explosive Rise In Property Insurance Chewing Through Home Values In Florida (And Elsewhere)

[hatrack]

Homeowners from Sarasota south to Naples, known for its eight-figure waterfront mansions, are having a tougher time selling their properties, and the buildup in inventory has caused home prices to fall at some of the fastest rates in the nation. Realtors point to rising insurance costs that were exacerbated by Hurricane Ian in 2022, prompting some homeowners to list their homes for sale and would-be buyers to walk.
“You’ve got people that went through the storm and just want to move on, and don’t really think the affordability is here anymore because of insurance,” said Marlissa Gervasoni, president of the Royal Palm Coast Realtor Association. “From what I’m seeing, I believe they are looking for areas that might be less costly.”

?w=900&ssl=1

Homeowners policies across Florida started soaring in 2020 because of what insurers and state regulators attributed to rampant lawsuits and fraud. Rates in the state climbed as much as 33% annually, then shot up another 42% last year in the aftermath of Hurricane Ian, according to the industry-funded Insurance Information Institute.

Ian, a Category 5 storm that was the third-costliest in US history, led some insurers to pull out of the state or limit new policies. Floridians paid $6,000 on average for insurance last year, about triple what they paid in 2019. By comparison, the average US homeowner paid about $1,700 in 2023, the III said. In Fort Myers, where hundreds of homes and business were destroyed by Ian, “we’re seeing anywhere from a 50-to-100% increase in spending depending on the age of the home,” said Gervasoni, head of that area’s Realtors board.

EDIT

https://thinc.blog/2024/02/16/insurance-costs-crushing-home-value-in-south-florida-california-and-soon-near-you/

[Timeflyer]

1. Meanwhile, Fla. legislature and gov are addressing faux issues like LGBTQ kids and public education.