Yes, homeowner insurance is very expensive. Few, if any, of the major insurers, State Farm, Allstate, Travelers, etc will write a new policy anywhere in Florida. Most new policies are issued buy the state owned insurer of last resort, Citizen's Insurance.
I'm within 1-1/2 miles of the Gulf of Mexico. Allstate dropped me after the 2004 hurricane season even though I never filed a claim in 20+ years with them insuring this home. Recently my policy was pulled from Citizens and picked up by a new, start-up insurance company. This year's policy runs a little over $2400 for about $200k placement cost. To add insult to injury most companies do not accept monthly payments. Most want 1/2 at the start of the policy year and the balance 3-4 months after the initial payment.
I'm sure that rates are less expensive for inland counties and for homes built after the 2004-2005 hurricanes, but they are still not cheap.
The state relies too heavily on sales taxes for its revenue (there is no personal income tax here). When times get tough people cut back on spending and the revenue stream starts to run dry. I'm a state employee and we've had no wage increases in 3 of the last 5 years, in large part because of the state's budget problems. In addition, Florida's job market is not too healthy. I think I read the we lead the nation in unemployment.
On the positive side (for new transplants) house prices are falling and predicted to continue dropping at least through 2008. Homes on my street that sold for 350-400k in 2006 are now on the market for 200-250k. Also, some inroads are being made to reduce property tax inequities between new residents and long-time owners.
) Thanks for all your advice everyone!!!
