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Sunday, October 15th, 2023

Florida’s Insurance Crisis is About to Get Even Worse

Author:     GIULIA CARBONARO
Source:     Newsweek Magazine
Publication Date:     10/14/23 | 3:00 AM EDT
 Link: Florida’s Insurance Crisis is About to Get Even Worse
Stephan:  

Here is the latest on the Florida real estate insurance market. Personally, I would not buy property in Florida, and would sell it if I owned it now. Ron DeSantis and this Republican legislature are simply not properly preparing the state for the dramatic effects climate change and sea rise are going to produce.

Makatla Ritchter wades through flood waters after having to evacuate her home when the flood waters from Hurricane Idalia inundated it on August 30, 2023 in Tarpon Springs, Florida. A recent study found that Floridians cannot expect their insurance premiums to go down any time soon. Credit: Joe Raedle / Getty

Florida’s skyrocketing property insurance premiums are expected to continue rising, according to a new report, despite already being among the highest in the country.

Residents of the Sunshine State currently pay on average more than $4,200 per year for home insurance, triple the national average of $1,700, according to data from the Insurance Information Institute (Triple I).

Research by Karen Clark & Co. (KCC), a Boston-based risk assessment and management firm, found that extreme weather events like hurricanes, which are frequent in Florida and are expected to become more severe with climate change, will continue to bring up the cost of reinsurance in the state.

This will also happen because construction costs—which are taken into consideration when determining how expensive it would be to rebuild a home […]

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1 Comment

  1. Albus on Sunday, October 15, 2023 at 4:50 pm

    Insurance companies are in the business of making a profit, and they do this by evaluating risk. The increases in premiums are just the evidence of higher risk. The real question, in my opinion, is will the wealthy game the process in such a way as to cost shift risk to the taxpayer. That this a significant danger to the residents of Florida.