Home Insurance Premiums are way too high!

As a home inspector in Florida, I understand the challenges the state faces due to rising insurance costs. Florida’s usual attractions—sunshine, low taxes, and affordable housing—Florida state is getting hit HARD with Home Insurance Premiums. Last year, around 276,000 people left Florida, with many citing the soaring insurance expenses as the primary reason for their departure.
Most of these individuals relocated to neighboring states like North Carolina, Georgia, Tennessee, and Texas. These states offer similar advantages in terms of housing affordability and tax rates, and importantly, they are not grappling with the insurance crisis currently faced by Florida.
The insurance industry in Florida has been hit hard by frequent and severe hurricanes in recent years. Since 2017, the state has experienced four hurricanes, three of which were Category 4 or 5, causing billions of dollars in damages.
Insurance companies, struggling to cover the increasing claims due to successive hurricanes and rising property values, resort to reinsurance to mitigate potential losses. However, the surge in hurricane-related claims has led to a significant hike in reinsurance rates. Consequently, homeowners and businesses in Florida are facing unprecedented hikes in their insurance premiums, prompting many insurers to exit the state.
Republican lawmakers are also working on a program that is called “My Safe Florida Home” which is gathering funds to provide assistance in rural areas. You can read more about that here.
Over the past five years, insurance premiums in Florida have surged by 300%, averaging over $4,200 annually, compared to the national average of $1,700. Many residents are not only dealing with higher premiums but also receiving notices from their insurance providers about their withdrawal from the state, leaving homeowners uncertain about their coverage.
Even those who manage to afford the steep premiums are facing challenges. Post-hurricane, a slew of lawsuits between homeowners and insurers has emerged, adding to the reasons why insurance companies are choosing to leave Florida.
This departure of insurers has elevated Citizen’s Property Insurance Corporation, a state-run provider, as one of the primary sources of insurance in Florida. However, this was originally meant as a last-resort option. Now, it’s increasingly becoming the go-to choice for many Floridians, raising concerns about the state’s financial stability in the event of another catastrophic storm.
The potential impact of another devastating hurricane on Florida, both financially and in terms of residents’ decisions to leave the state, remains a significant concern among us in the home inspection and real estate industry here in Florida.
It is crucial to highlight that homeowners can potentially mitigate rising insurance costs through various inspection services. Services like the four-point home inspection and wind mitigation inspection can help homeowners secure discounts on their insurance premiums. You can read more about each of the services by clicking on these links What is 4 Point Home Inspection? and What is a Wind Mitigation inspection?
The discounts resulting from these inspections can vary based on the home’s specific features and the insurance provider’s policies. However, the potential savings they offer can significantly offset the increased insurance premiums caused by the state’s insurance crisis.
As a home inspector, I understand the importance of these inspections not only in ensuring the safety and durability of a home but also in potentially reducing insurance expenses for homeowners. By investing in these inspections and ensuring that their homes meet certain safety and resilience standards, homeowners in Florida can avail themselves of discounts on their insurance premiums, alleviating some of the financial burdens caused by the current insurance crisis. I prioritize educating homeowners about these inspections’ benefits beyond just ensuring their home’s safety and functionality. I aim to empower them with the knowledge that investing in these assessments not only protects their property but also potentially eases the financial strain caused by the current insurance challenges facing the state.