[sinatras]

https://www.wsj.com/real-estate/home...tate_lead_pos4

“We love it here,” said James, who plays golf with his 3-year-old son on Saturdays and can swim year-round in his backyard pool.

Then the renewal for his home insurance arrived. The new rate for the year starting in September was around $121,000—more than seven times what the Molinaris said they paid last year, and more than 13 times what they paid when the family moved to Florida in 2019.

While they found a better rate from another insurer, at about $33,000 it is still nearly double what they paid last year. The family this month listed the home for sale with an asking price of nearly $3.5 million after determining that insurance costs made staying there too expensive. Others in Flamingo Park told The Wall Street Journal they are drawing the same conclusion.

“The for-sale signs are going up left and right,” James said of the neighborhood.

[Travelassie]

Well, it would stand to reason that a house with an asking price of 3.5 million would incur a high homeowner's insurance premium.



Here in the real world, our homeowner's insurance premium at renewal this year was around $4300.

[sinatras]

Originally Posted by Travelassie

Well, it would stand to reason that a house with an asking price of 3.5 million would incur a high homeowner's insurance premium.



Here in the real world, our homeowner's insurance premium at renewal this year was around $4300.

The asking price has nothing to do with the premium. Insurance premiums are based on actuarial science in which the companies try to set a premium on which they don't lose money.

The home is 4 bedrooms at 3500 sq feet and not even on the water.

Are you saying that the Molinaris do not live in the real world? That Flamingo Park is not the real world? That these people are lying to the Wall Street Journal and that their premium did not double 13 times since 2019?

[move4ward]

Originally Posted by Travelassie

Well, it would stand to reason that a house with an asking price of 3.5 million would incur a high homeowner's insurance premium.



Here in the real world, our homeowner's insurance premium at renewal this year was around $4300.

The house was worth $3-3.5 million, last year also. The insurance was $16k back then. It's not the appraisal value making his insurance premiums go from $17k to $121k.

[sinatras]

Originally Posted by move4ward

The house was worth $3-3.5 million, last year also. The insurance was $16k back then. It's not the appraisal value making his insurance premiums go from $17k to $121k.

Exactly!

[beach43ofus]

Must be in a bad flood zone, and they must have a bad history of filing claims in the past.

It still sounds out of whack to me.

Our hoem is $1M, flood zone "X" & we pay <$2k in SW FLA...8 miles inland from the Gulf...newish home wind rated at 160 mph.

[FL_Expert]

I’m not surprised sadly. I actually got a renewal offer recently for $19k, which was about a 400% increase from last year and the property isn’t in a flood zone. I nearly listed it for sale, but it looks like I’ll be able to get a different policy that’s only about 60% higher.

[MOforthewin]

Originally Posted by beach43ofus

Must be in a bad flood zone, and they must have a bad history of filing claims in the past.

It still sounds out of whack to me.

Our hoem is $1M, flood zone "X" & we pay <$2k in SW FLA...8 miles inland from the Gulf...newish home wind rated at 160 mph.

Well, I'd like to know, he has a 3 year old so he's not "that old" unless he's like Robert De Niro who has a newborn at 80 years old and I'd like to apply for whichever job "career: he has to be affording a 3.5 million dollar home! I'd gladly would still pay 133k for insurance if I'm making 600k a year! I want that job!

[MOforthewin]

Originally Posted by beach43ofus

Must be in a bad flood zone, and they must have a bad history of filing claims in the past.

It still sounds out of whack to me.

Our hoem is $1M, flood zone "X" & we pay <$2k in SW FLA...8 miles inland from the Gulf...newish home wind rated at 160 mph.

My house is worth like 470k and went up next year. Cost more than yours. Then again I'm in Punta Gorda and we got hit much much harder in Charlotte County than you did in Sarasota. They have me in a FEMA Flood zone even though it has hardly ever flooded according to history. Didn't during Donna 1960.

They could go by strictly elevation, not historical flooding. My house is 9 feet in elevation and I'm still a couple miles from the Harbor. Even if the surge made it to me it would be minimal by then. I'm literally like 2000 feet on the west side of I75. If I was just a half mile east I wouldn't even be considered a flood zone

Look at Ian for example even if it had hit Englewood the center and brought the max surge up Charlotte Harbor instead I still don't see myself getting surge in my house. Maybe a couple inches on my street. But not in my house.

I'm not trying to downplay Ian but the surge was nowhere near as bad as they made it out to be as it was approaching. When they were saying up to 18 feet! Ft. Myers Beach had 15 feet, Sanibel up to 13 feet. Cape Coral didn't get 12 feet of surge as was hype. And up the river downtown had flooding but it wasn't as catastrophic as it was hyped. Our coastline isn't like the MS coast and Katrina and Camille. They can get surge much worse there than SWFL.

Same with Irma. Everglades City didn't get no 15 foot surge despite being on the right side of the storm which is worst for surge. Even the Keys didn't get monster surge.

[Travelassie]

Originally Posted by move4ward

The house was worth $3-3.5 million, last year also. The insurance was $16k back then. It's not the appraisal value making his insurance premiums go from $17k to $121k.

No it doesn't. But the author of this piece didn't share any other information about the house or owners, or other extenuating circumstances that made the premiums increase as they indicated. And there are extenuating circumstances that affect the price of homeowner's insurance, as those of us who deal with it know. One of those circumstances IS the replacement value, or costs to have the house made whole again in the event it's damaged, destroyed in a natural ( or manmade) disaster. I'd expect insurance premiums to be high- higher than I could afford, for a house appraised at several million dollars.

The posted story tells of high end homeowners paying expensive insurance premiums on a multimillion dollar house, and being blindsided by the increase in premiums. The story has its dramatic, shock value in the high figure cost of the insurance. We all have had our insurance premiums raised since Ian and other hurricanes/tropical systems paid their visits to FL in the last two years, but an increase of around $500 ( as we had for our homeowner's insurance renewal this year) wouldn't contribute much to a running narrative that there's nothing good about the state of Florida.