Florida Residents Flee State as Insurance Premiums Skyrocket up to 900%
Florida Residents Flee State as Insurance Premiums Skyrocket up to 900%
Insurance premiums in the Sunshine State have climbed so high that people are considering going without insurance coverage, or moving out of the state.
The skyrocketing cost of insurance premiums in Florida is leading residents to drop their insurance, consider selling their home, and even move out of the state, according to recent reports.
For years now, the sunny, vibrant state has been a magnetic destination for many Americans—a phenomenon which has been driving up demand for housing, especially during the pandemic, as well as home prices.
But while Florida was the number one state in the country that people moved to in 2022, it was also the one with the highest number of residents wanting to relocate, according to a SelfStorage.
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Can we build a wall to prevent them crossing the border to America?
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Doesn’t matter to me, they think I live in a third world communist hell hole so they won’t move where I live anyway. Never thought I would say this but… thank you Fox News!
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Maybe we can cut the whole peninsula off and refer to it as the Great Castration.
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Just be brownish, and you'll get a free flight to New England!
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A seawall.
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You can't build a seawall on deteriorating limestone, that's why Miami is doomed.
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...and Cuba's gonna pay for it.
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Sell their homes to who? Is this like a NFT, always a bigger fool, kind of thing?
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Fucking Aquaman?
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To landlords, who will charge arbitrarily high rent, secure in the knowledge that they aren't in a free market due to inelasticity of demand (people can't do without shelter) and supply (there are finite places to live). That will let them pay the insurance premiums homeowners can't afford.
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Republicans who want to jerk off to DeSantis and let some racial slurs fly without social opprobrium.
That's who has been moving there since 2020 or so.
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Some people see Florida as America's floppy, deformed penis. Others see it more as a nauseating dookie emerging from the south. Scientists are still studying the area to find the causes of the mass psychosis, but urge all healthy adults to avoid the region and its inhabitants.
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Nah just spin it up into a bunch of naked credit default obligations and mix it in with the A and AA tranches, what could go wrong?
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Everything has a buyer at some price. These people will just have to sell at a loss, probably.
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They were laughing at Californians when it was happening to us (very very recently) thinking that it was the result of "liberal policymaking".
Well, how does it feel, Florida? Are you ready to put aside our differences and go after our real common enemy, the for-profit insurance industry and climate deniers? Because I promise you, this is only going to get worse unless we force them to change things.
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I'm sure DeSantis can fix this by just "fighting woke" more, right? /s
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Insurers aren’t really to blame here. Florida is a fundamentally high-risk place to build and live now, and will continue to get worse for the foreseeable future due to climate change. Even a non-profit insurer would need to price Florida insurance at a premium, lest its funds be exhausted when the inevitable category-6 hurricane hits the state.
Arguably the ones most to blame (after the fossil fuel industry, for putting us in this position in the first place of course) is corrupt politicians and developers who allow such shoddy construction in the state in the first place.
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We don't just allow construction in risky places, we subsidize it. If you're an owner or developer and you wanna put your own money at risk by building in risky places, you should be allowed to do that. Just don't expect me to pay for it through taxes and FEMA flood insurance.
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Maybe it's not quite comparable to the situation in California, now that I think about it. Florida has always been in the path of devastating hurricanes for as long as I can remember. There is a degree of assumed risk living there. In California, these massive wildfires almost never happened and now suddenly it happens every year without fail no matter how hard we try to contain them. I live in an area that has never been hit by a wildfire, but because California as a whole has been hit so hard so many times recently, rates get raised to untenable levels and State Farm won't even write you a policy. It's completely mad.
Like, I get it, it's not the insurance company's fault that we live in the path of predictable destruction, but there has to be a better solution than "move somewhere else if you don't like it". I wonder if we can learn something from studying the insurance models of other countries that are prone to disaster (Island nations in Asia that are frequently hit by typhoons, for example) and adapting that to how policies are tailored here?
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Honestly I'm on team insurance in these cases. The US is filthy rich and we have tons of highly habitable land. Why are we wasting resources subsidizing some people choosing to live in comfortable, risky locations?
For those stuck in poverty: that does suck but I consider that an independent issue.
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Free hand of the market is giving them an invisible removedslap.
Soon they'll be "free" from insurance.
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Good. Subsidizing risky behavior, as we do with some kinds of disaster insurance, encourages risky behavior. Rising insurance costs are the market telling people to stop living in certain places. We'd do well to listen and stop living in places like Florida so much.
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Are you ready to put aside our differences and go after our real common enemy, the for-profit insurance industry and climate deniers?
Nah. Republicans never admit when they are wrong.
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It's interesting to me that insurance companies are becoming the chief drivers of the preparation for climate change: "Wanna build a house in the woods? On a sandbar? GTFO. Use your own money."
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Since humans invented math and fossil fuels, this moment was inevitable. The writing has been on the wall in Florida for ten years.
I forgot the actual statistics, but it's something crazy. Like Florida constitutes 8% of the country's homeowners insurance policies, but 80% of all homeowners insurance litigation. Florida real estate is a ponzi scheme now.
They've got miles and miles and miles of roads in Florida lined with 10-million dollar, beachfront houses, all of which will sooner than later be buried under 25 ft of seaweed for the next thousand years. The question is who will be left holding the bag on all that risk?
I'm certain the Republicans in the Florida legislature will let the insurance companies off of the hook before too long here, and will leave working people holding a bunch of worthless real estate, just waiting for climate catastrophe to wipe everything away.
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Well yeah. The cost of damage resulting from rising sea levels are one of the negative externalities that result from burning fossil fuels. Insurance premiums are effectively passing that cost on to future flood victims.
That means the right market-based solution, which both parties claim to love, is to apply an appropriately sized carbon tax, thereby internalizing those costs in the price of fuel, and using the funds to pay for flood mitigation and future damage, but that looks too much like socialism...
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The criticisms I hear from the American left about carbon taxes is that they don't work, not that they look like socialism. I think they probably would work, but what do I know.
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Because they are grounded in the real world. If your goal is to make money finding out how to lower your costs is a good way to do it. If your goal is to win elections telling people what they want to hear is a good way to do it. They know that this is happening and it is going to get worse.
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Whatever it takes to finally get people to realize that living in a disaster zone is a terrible idea.
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The current crisis isn't so much about climate change as it is an insurance market so rampant with fraudulent roof damage claims that the market can't bear it. FL legislature tried to correct this but before the law took effect a flood of claims were filed.
Climate change will only make this worse, ofc.
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My understanding is that the substantial majority of roof damage claims were legitimate and attributable to predatory roofing companies that would finance and install new roofs after a storm at a huge discount, they'd install a shitty fucked up roof, then would sell the debt to a third party servicer, and then the roofing company would close up shop, rebrand under a new name, and do it again. By the time the roof fails, the original company is long gone leaving the homeowner and the insurers holding the bag.
The legislature and the insurers realized they had a impending consumer crisis and loosened the laws about paying these claims, and essentially opened the door to the fraud.
I wonder if the real issue at this point is that Florida just attracts fraudsters. It was their laws that allowed contractors to have a revolving door of LLC's.
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Free market win?
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I mean rebuilding houses in regions every 5-20 years was never gonna come out on top.
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Oh come on. We live in a house built in the 1940s, and I moved to this house from one built in the 1920s that is still in good shape. It's not like all the houses are knocked down and rebuilt every 15 years, but that is how the insurance is priced.
Insurance is partly like gambling, the house always wins, right? They want to make money. Whatever the highest amount allowed by law is, that is what they charge.
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It won't be long, and in Florida the cost for the mortgage will be neglectable in comparison to the costs of insurance.
The big downside will be that Floridians will move out of Florida and spread elsewhere. Maybe it is time for Georgia and Alabama to invest in a massive fence?
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Negligible.
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A wall. A sea wall.
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Insurance typically works off historical data to evaluate risk from my understanding, and having something as disastrous as the Miami beach condo collapse bodes a bad sign for insurance companies, especially given the terrible and absolutely incompetent rescue effort during the aftermath.
By the way, I'm shocked at how quickly the Miami condo collapse left the news cycle.
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Iirc Florida passed some kind of law requiring coverage no matter where a structure is. And the only way the companies could make it work was massive premium increases because the places they're being forced to cover literally have to be rebuilt every year. This was after the federal government said it wouldn't offer disaster insurance on those zones anymore.
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To be fair to Florida, that condo was built pre-Andrew and they revised their entire building code after Andrew. There aren't too many large building built pre-Andrew anymore because they were all built as cheap as possible to laundrr drug money.
That being said, there are a million reasons why i would never move to Florida, and the only building codes that can prevent your house getting inundated by flood surge is by putting it on stilts, so no shocker that the premiums are skyrocketing. Same with fire insurance in California right now.
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This is the first I've heard about it. When did it happen?
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lol @ all the people who fled the northeast because “Florida is cheap…”
Even the second place finisher of the Carolinas has gotten too expensive.
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That's the free market meeting climate change. It will get worse.
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You voted for it.. You get what you get, and you don't get upset.
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Actually I very specifically voted against it, but my vote wasn't enough. I'm really hopeful that the GOP will finally just implode now that the MAGAts and the more traditional trickle-down conservatives are at each others throats, but I'm also not naive enough to think that's guaranteed or even likely. With the luck we've been having lately most likely some even worse more virulently stupid and corrupt version of the GOP will rise from the ashes.
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People move to Florida for the same reason why people use to move to California. So you wonder when housing prices will absolutely soar. Also, lack of natural disaster preparedness is something that can't be ignored in Florida. Deregulation won't solve that problem.
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But when you have banned all wokeness (whatever that is), surely all problems will be solved?
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So much for DeathSantis utopia. Go back to Florida and don’t bring your Nazi politics to my state.
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40% of voting Floridians voted against DeSantis, Florida is also the state with the third highest Jewish population, I'm fairly certain that nowhere near all of Florida has "Nazi" politics.
Maybe try not sounding like an ignorant by generalizing the third most populated state, which is also just as mixed as the other three most populated states. You're just sounding like those idiots that removed about how California is all "liberal" while ignoring the conservative North Cali and all of the Neo-Con enclaves and Nazis in between.
Sure the Florida GOP are pretty much Nazi-lite, but there's a shitload of Florida citizens who are not them and completely disagree with them and are doing what they can to push back against them.
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according to a SelfStorage
Lol, what?
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It’s a storage unit company, so presumably they have their own moving service or often connect people with other moving services. They’d be able to see the trend
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They didn't finish the sentence
...according to a SelfStorage service clerk working in Tampa /S
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Build the wall
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counterpoint: Don't build the sea wall.
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Would be sick if we could pull a Looney Tunes and saw the fucking thing off from the rest of us. Let it float away and sink into the Atlantic.
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You don't need to saw it off, climate change should take care of it.
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That’s too slow, though. They’ll all migrate north and infest the rest of the country in the time it takes for the state to submerge. No, the humane thing is to get it over quickly and tbh they’ll probably thank us for letting their state “secede” from the woke liberal U.S. win/win
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Let's fund it boys
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We currently are... with oil subsidies.
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Build a big saw and saw it off! And make the Atlantic ocean pay for it!
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You mean like this?
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This isn't just a Florida problem.
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There is items that are either unique to Florida or are prevalent in Florida that make it the kind of state where this problem will happen first.
Unique to Florida is a lot of pseudo scammy ways that repairs occur after natural disasters which increase premium costs due to lawsuits causes by reconstruction occurring before appraisal.
Not unique but prevalent are the hurricanes and common flooding.
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It's happening here in southern Louisiana. My insurance premium has been steadily increasing for the last 3-5 years.
Also, we're going through a drought which is causing a saltwater intrusion into our wetlands and wildfires in the marshes.
https://www.drought.gov/states/louisiana https://gohsep.la.gov/emergency/Saltwater https://www.wdsu.com/article/heavy-smoke-filling-the-air-in-new-orleans/45608195
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It’s Disney’s fault.
edit: honestly, do I really need to put a “/s” at the end of that?
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Poe's Law, fam.
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How?
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Disney is stealing the sand from the beaches to build an ocean in Disney
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/s
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These hurricanes are not imaginary.
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/s
Have you tried a nuclear bomb or windmills to stop them?
also /s
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Floridian here. My mom currently has Citizenship Insurance. Her rates will increase by about 11.5% by the end of the year.
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What kind of insurance are we talking about here?
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Home insurance, same thing's happening in Louisiana and California
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Definitely happening in Louisiana. My insurance broker called me in a panic yesterday to let me know how high my renewal will be this year, and it is very, very high.
I'm going to eat the increase because there's no other company offering lower rates. I live in an area hit by hurricanes, and I know insurance companies are for-profit businesses, so I've been expecting this.
At this point, I'm just grateful the company didn't pull out completely.
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Home
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Midwesterner here. Is this because of bad construction mixed with climate change causing stronger storms? I’ve been seeing much lower quality new construction up here and I’m curious if houses are just becoming total losses during storms instead of repairable.
They mention construction costs are partially to blame but I can’t believe that and shareholders are the only thing boosting it by that much.
