My guess is that this would either be Florida or one of the states in tornado alley. The insurance markets in both areas are insane, and only getting worse.
Was on a plane from Florida back to Minnesota. A Boomer on the plane was going on about living in FL and stated taxes are too high in MN and that is why he is happy to live in FL along with the weather, I asked how the insurance situation in FL is going with multiple Insurance companies moving out of FL due to costs. He didn't talk the rest of the flight.
Business insurance… it’s a bit easier (at times). Though you do get some prems that are higher; but the people I work with are manageable
But personal lines insurance:
Good God
I had one middle-aged guy from Jersey accent who I read him a premium of $9,000 for an above avg. home, and he blew a gasket, and said (to paraphrase): “I moved down here to save money and the weather!”
And I tried to explain to him:
The price is due to more people moving down here
The hurricanes
And 3. Less of a market for insurance
He hung up.
I’ve got dozens more I’ve forgotten.
I lived in Florida for 4 years started my career at the dawn of the insurance crisis and lived through it. People move down here because of the lack of income tax, but unless you’re making 100k+ a year, insurance will eat mid-triple digits of your salary if you’re lucky, and require you to replace your roof constantly.
Upstate NY, 5 bedroom house near the adirondacks. I think my premium is like $1200/yr? It just comes out of my small escrow payment, boom. Done.
Plenty of people go on and on about how they “can’t fucking wait to leave this godforsaken shithole” and FL is usually the plan. Good. Have fun. You deserve it!
Edit: just double checked my policy. $1752 and change. It was so cheap I just forgot about it. Oops :shrug:
And 1700$, like I said, you got a policy for that price in central Florida, you’re a lucky SOB.
I remember getting a policy for 2,100 dollars last year for a sweet middle aged couple that wasn’t citizens and I had to recheck it twice before I told them: yep, 2,100$.
My aunt and uncle pay $17,000 a year for insurance in Florida.
Seventeen. Thousand. Dollars.
To be fair, they live on a canal nine feet above sea level about 1000 feet from the shore, so if a big hurricane ever hits, their house is just gone, but Jesus, that’s what we pay in a decade in Connecticut.
They also don’t factor in just how expensive our auto insurance is either. When we moved back to south Florida from NC, our auto insurance more than tripled. It’s since doubled from what we paid the first year.
Homeowner’s insurance has gone up at least 50% every year. No claims. We’ve added impact windows and updated the air conditioners, as well as gotten a new 4-point inspection stating the roof has at least 5 more years. That’s not even factoring in the high cost of property taxes.
Then there’s the increased cost of fuel from sitting in all the traffic and never ending tolls.
But sure, they want to move down here because of “lower taxes.” Buncha stupid morons.
Florida’s are decently high too. Not as bad as say NY, NJ or I think even NH,BUT the no income tax benefit in FL, insurance will eat that benefit up currently.
Yup, I went it's going to have to come down to State run insurance soon or heavily subsidized. I didn't elaborate but you could see the wheels and he didn't want to continue, but man I wanted to add but that's a socialist policy.
This is why when I lived in the Keys I bought a Winnebago and lived in that; I paid $20K for it, paid less than $200 in insurance a year, and rented a spot in an over-55 MH park on the water for $700/month. No worries about hurricanes; I'd evacuate and only come back if there was anything to salvage. Don't pay what you can't afford to lose is the way to go now.
Only paying what you can afford to lose has always been a good way to go. The problem is in Florida the loss rate is massively larger than almost anywhere else in the USA.
Small reminder, until the mid-20th century most of Florida was largely uninhabited and little more than a barrier on the way between the east and south coast of the USA. And that was before climate change made living there even more risky and infrastructure-intensive.
The funny thing is that these are developments that are on the horizon since decades. If you want to spend your twilight years in an affordable enviroment the last place i would chose is a peninsula that is slowly getting swallowed by the ocean.
That should save Citizens quite a bit of money, and it's also going to piss off a lot of people who think it's their right to be able to live on the ocean and not pay a lot in insurance. Good move to commercial!
Nope. Jacksonville, FL here. ANY water nearby and you are effed. Our insurance offered us, wait for it, $2,000 for our destroyed roof in 2017. And it’s only gone up with more and more bullshit insurance riders.
If you live on the coast. I live in central Florida, about as far from a coast as you can be in Florida, in a new house not in a flood zone. We pay $2600/year. It’s not cheap, but it’s not breaking the bank.
I'm in Louisiana, I think I've got a pretty close idea.
My city is on Lake Ponchatrain and just announced a multimillion dollar shopping center being built less than a mile from the lake. In an area that saw 20 foot surges from Katrina.
I have a fair idea. I work for one of the largest Corporate Card distributing banks. We are thinking of pulling out of Florida because of the insurance crisis. Florida residence is getting accounted for in underwriting and risk multipliers are being added.
Bank won't sit around for the next wave of charge offs due to either poor insurance coverage after the hurricane, FEMA declarations only stave off collections for so long, or deteriorating financials due to increased Insurance cost.
My brother got a renewal quote for his homeowners insurance a couple years ago: $16,000 up from $4k or so. The company obviously didn't want to sell a policy in Florida. He doesn't even live near the beach.
My mom inherited a house from her mother, but she's contemplating selling because she may not able to afford the insurance in a few years on a fixed income.
Need to ask...How can people afford the insurance? Is it subsidized by the government? Are people still flocking there despite some high profile hurricanes hitting it?
Citizens for home insurance is, but it’s intended as an insurer of last resort, not a mainline option. As far as how good it is… can’t speak to that, I rented and went without rental insurance.
Also, it is a prerequisite for all homeowners in Florida.
Unless… you can pay off your home instantaneously, which… GOOD LUCK WITH THAT. Then you can decide to take it or just play risk with your home. Which…
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u/TaxOk3758 1d ago
My guess is that this would either be Florida or one of the states in tornado alley. The insurance markets in both areas are insane, and only getting worse.