Paying for home owners insurance in Florida

SL6827

DIS Veteran
Joined
Apr 23, 2017
How much longer can Florida residents sustain the skyrocketing cost of home owners insurance? Will other customers in the southeast states eventually be forced to cough up more money to help cover the sunshine state?
 




What got my attention too was that in Florida they can add onto your car insurance rates to pay for home owners claims if they need too. That's insane! What state will be the next to do such?
 
Florida has not had the same regulatory oversight as other states, most major insurers don’t do business in Florida. These smaller companies have not been properly reinsured due to the lack of regulation (I believe a law goes into effect in July) but it’s nowhere near what other states require. You can Google what created this situation.
 
Florida has not had the same regulatory oversight as other states, most major insurers don’t do business in Florida. These smaller companies have not been properly reinsured due to the lack of regulation (I believe a law goes into effect in July) but it’s nowhere near what other states require. You can Google what created this situation.
Roof repairs?
 
Recently read a story about several homes washing out to sea on the Outer Banks of North Carolina. One of them was bought only 10 months ago. How do those people even get homeowners insurance? I mean no company is going write them a policy on those houses.
 
Recently read a story about several homes washing out to sea on the Outer Banks of North Carolina. One of them was bought only 10 months ago. How do those people even get homeowners insurance? I mean no company is going write them a policy on those houses.
The most basic problem is, cities approve the building of homes and other structures in place that they never should have. They know historically that those areas WILL be impacted.
Here in Sacramento, over the last 45 years we have allowed construction in the Natomas area. An area that was known flood plain. Now were are spending hundreds of millions of dollars reinforcing levees to protect structures that probably should never have been built there. Or at least not built until strong levees were in place.
 
We're asking ourselves the same question. Our insurer became insolvent and left the state a few months ago. We had an open claim (only time ever filing a claim in 25 years of home ownership). Because of the open claim, no one else would insure us but our home was valued higher than what Citizens would cover. We ended up on forced lender insurance. The company wouldn't tell us the price. We finally found a Lloyds of London policy for $10,000 that does not cover the roof, hurricanes, mold, or water damage. Basically we are only covered for fire and it won't cover the full value of our home. Until our roof is repaired or replaced (and the roof claim closed), no one else will insure us. We moved here 4 years ago and our homeowner's insurance was under $4,000. We were not expecting $10,000 a year plus over $100,000 to replace the roof. We can't even sell unless we can find a cash buyer who is willing to buy an uninsurable house with a leaky roof. It's a tough situation. Not to mention that our car insurance is also $3,000 and we've had no accidents. It was about $1,200 when we moved here.
 
No sure it would even be legal for customers in other states to be forced to cover Florida.
All of your insurance is a pool of money, you as a CA resident are paying for insureds in FL at some point or another just as I in KS am paying for wildfires in CA or for the tons of uninsured/underinsured drivers in Detroit.

When companies cannot maintain profits over time in a state they pull out as a strategic way OR they don't go into a specific state for a strategic way.

There's always specifics to each state for regulations but the insurance company has to spread their risks and has to collect enough premiums across all their subsidiaries they own across all their states, when they don't rates tend to go up and when it's prolonged or in such a severe way that one or more state is eating up too much ratio of premiums to profit they pull out.

Some will also put their non-standard company in a particular state. For example the insurance company I worked for did not put their Standard (meaning preferred) insurance company in FL, but they did have two subsidies there both non-standard. One was a company that ordinarily was for customers ineligible for the standard company (i.e. too many points).
 
All of your insurance is a pool of money, you as a CA resident are paying for insureds in FL at some point or another just as I in KS am paying for wildfires in CA or for the tons of uninsured/underinsured drivers in Detroit.

When companies cannot maintain profits over time in a state they pull out as a strategic way OR they don't go into a specific state for a strategic way.

There's always specifics to each state for regulations but the insurance company has to spread their risks and has to collect enough premiums across all their subsidiaries they own across all their states, when they don't rates tend to go up and when it's prolonged or in such a severe way that one or more state is eating up too much ratio of premiums to profit they pull out.

Some will also put their non-standard company in a particular state. For example the insurance company I worked for did not put their Standard (meaning preferred) insurance company in FL, but they did have two subsidies there both non-standard. One was a company that ordinarily was for customers ineligible for the standard company (i.e. too many points).
California is a funny insurance market. HEAVILY regulated. Law requires a lot more consideration of claims paid in the state in considering rates and profit margins.
 
Several national insurance companies pulled out if Mississippi and Louisiana after Karina.

After a number of years and fewer hurricanes, they have come back amd write policies again.

It's all business and political ploys.

They'll come back to Florida and California when they want the business again.

Insurance rates are ridiculous, though, in areas that have had disasters.
 
Several national insurance companies pulled out if Mississippi and Louisiana after Karina.

After a number of years and fewer hurricanes, they have come back amd write policies again.

It's all business and political ploys.

They'll come back to Florida and California when they want the business again.

Insurance rates are ridiculous, though, in areas that have had disasters.

If the rates are too high wouldn't a new company come into the market and undercut other insurers on pricing?
 

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