One client faced a staggering $17,000 annual premium quote for homeowner’s insurance, a sharp contrast to the current owner’s $5,000 coverage for the same property.
Florida’s insurance crisis is causing headaches for potential homebuyers, jeopardizing dreams of retirement homes in Winter Park, Fla
Florida‘s insurance crisis is increasingly common in the state, where homeowner’s insurance is a prerequisite for mortgages. With several insurers exiting the state due to soaring costs, obtaining coverage at a reasonable price has become a daunting task. The average Floridian paid a record $6,000 in 2023, a 42% YoY surge, dwarfing the national average of $1,700.
Florida’s insurance crisis is primarily attributed to escalating reinsurance and litigation fees. Unable to bear the expenses, companies either exit Florida or pass the costs on to consumers. The state’s recent repeal of the one-way attorney’s fee provision, meant to lower insurance costs, might inadvertently burden Floridians pursuing claims against insurers.
Reinsurance, vital for insurers in hurricane-prone Florida, surged in cost after the destructive Hurricane Ian, increasing expenses for both insurers and consumers
Simultaneously, insurers are intensifying scrutiny of policyholders, often deeming properties uninsurable due to prior claims. While a state-backed option exists for such cases, Citizens Property Insurance, it comes with numerous limitations and potential rate hikes.
Florida’s insurance crisis exacerbates challenges in a market already contending with high mortgage rates and elevated prices due to limited inventory. Despite these hurdles, some buyers, like those represented by Bokuniewicz, have managed to secure insurance, though at a significant cost of $10,000 per year.
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