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Yesterday, 05:34 PM | #1 |
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Florida residents How do you afford insurance?
Every other storm it seems insurance companies stop covering residents and paying claims yet they raise everyone elses rates nationwide to cover their costs.
At what point is Florida uninhabitable? I feel bad for folks that can't just pick up and move. |
Yesterday, 05:52 PM | #2 |
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Good question, we moved my mom off the Texas Gulf Coast largely due to homeowners insurance increases. Wind, flood and fire were three different policies and the totals were nearing her mortgage payments.
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Yesterday, 06:12 PM | #3 |
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Go ask folks in CA about earthquake or fire coverage. State Farm is threatening to leave CA altogether, it’s not just a Florida issue.
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Yesterday, 06:52 PM | #4 |
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Yesterday, 09:00 PM | #5 |
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We don’t pay state income taxes, so that helps. I pay about $6K/year for insurance with 2% deductible and expect I’d pay more than that in state income tax if we had one.
Also, our property value assessment increases are capped for primary residences. I pay about $6K for property taxes in our home we’ve been in since 2002 and that is well under 1% of property fair value.
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Yesterday, 10:13 PM | #6 |
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Ask this question again once their renewals come up. In LA, we had Laura, Delta, Zeta & Ida. All within about a year. Prior to this my homeowners was around $3200 and flood around $900. In 2022, my insurance was around $5500/year. UPC went bankrupt at the end of the year which was after all the other companies had pulled out. Result, force placed with Citizens at around $9k/year. Was able to maneuver to get it around $7500/year. This is NOT including flood which is around $1200 or property taxes. A few companies came in and we are back down to around $5400.
Currently, people are trying to buy homes and the note they can afford. Once insurance gets factored in people are walking away from the deals. The next issue, is getting insurers to pay. We know people who are fighting insurance and don’t have complete repairs from Ida 8/2021. Attorneys have had to get involved and don’t even get me started on that. We will never file a claim again unless we have significant damage. It isn’t worth it and they nail your ass on the back end. |
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Today, 07:52 AM | #7 |
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There’s an old saying: Insurance companies are in the business of getting paid for risks they don’t take.
Details in insurance contracts matter, a lot. |
Today, 08:42 AM | #8 | |
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Quote:
For those not saying its only a FL problem and point out CA, there are huge areas of the country that don't have anything close to what the worst states deal with. With the FEMA budget (Federal program) at $20 billion and likely to get huge extra funding, states that continue to use the bulk of it should be paying the bulk of it. If states regularly need federal money people outside the state should have a say in what is going on. I'm fine with you building a house on the beach but don't want to fund replacement it if it continues to get knocked down.
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Today, 09:26 AM | #9 |
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All these disasters may be taking their toll. Florida having no state tax and lower property taxes certainly does offset some of the extraordinary expenses. But you have to add back property insurance, flood insurance, auto insurance, pest control, much higher food costs, being 38th in the U.S. for wages, etc.
We sold the MIL's house in Punta Gorda in mid 2023. The current price on Zillow is down 10% from that sales price, which was 10% down from the 2022 peak price. From a newsletter that I read: "Milton and Helene are compounding another problem: People aren’t migrating to Florida like they used to. With Tampa’s housing supply up 58% and demand down 10% in August, half of the area’s for-sale listings had gotten price cuts as of a month ago, according to the analytics firm Parcl Labs. Zoom in: One homeowner told the Wall Street Journal he’s been trying to sell his ~$580,000 suburban Tampa house for eight months, but he hasn’t even received open house visitors. Zoom out: Prospective buyers are getting priced out. Home and flood insurance rates in Florida have skyrocketed as much as 400% over the past five years, and those premiums will likely only get worse after this year’s hurricane season. Disaster models are projecting an average of $35 billion in damages from Hurricane Milton" There is an also expense to having to leave your home frequently, toss your food, travel/lodging, and clean up, an $8K hurricane deductible, paying to have shutters installed. I am not dunking on Florida, but I do think that all factors need to be considered in a true cost analysis. And I think it is beginning to hurt certain locales. CA, TX and FL have the highest insurance claims nationwide. It does seem unsustainable.
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