[TriMT7]

Originally Posted by dlhanson

Florida politicians are reckless when it comes to property insurance. Floridians may pay below actuarially sound rates now but when the next big hurricane hits, the state of Florida will be in big trouble. From a recent WSJ editorial:

"Mr. Crist has thus guaranteed that Floridians, rather than the global insurance industry, will be on the hook for property damage when the next Katrina hits. Citizens is facing more than $400 billion in potential exposure, yet Citizens Chief Financial Officer Sharon Binnun was recently cited in the South Florida Sun Sentinel as saying it had only $3.4 billion in net assets. Anxious to keep voters happy, legislators have frozen Citizens premiums the past three years."

We are thinking about moving to Florida next year but the insurance situation gives us something to think about. If the State found itself hundreds of billions in the hole because of politician pandering, how would they make up the losses? Either insurance surcharges or taxes or both, I would presume. We could escape insurance surchanges by self-insuring but it could be impossible to escape taxes. Maybe we should rent rather than buy?

"400 billion" in potential losses for Citizens would assume complete policy limit claims made by every single Citizens policy holder.

Most people these days do not have to be insured by Citizens. Private insurance companies play the "we're so broke" game while engaging in the "windpool" scam that allows the parent company to make billions in profit and run to the legislature in Florida because the company's "Florida fund" is broke.


Nonetheless, like every state, we have a insurance guarantee association, funded by a portion of every premium paid in the state. If THAT ever goes insolvent, the state would just have to make up the difference by borrowing money, or begging the feds.

[lipps]

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[Dee74]

Dee,
I'm sorry for your situation.

I know that for those close to the shores, insurance is high. I'm sure that living 1.5 hours from either shore is partially what keeps my HOI much lower.

Frank D.

We also have a block home in Brandon and the rates are not much better, but no flood required. Now if we can sell this one. Thanks for the sympathy, we need it in FL.

Do feel for you Dee but it is oh so nice being close to the ocean.

Wouldn't complain if on the ocean, (and rich )but 30 miles from the gulf at the top of Tampa bay. It is nice driving across the bay bridges to get to see the water.

Dee..

Have you checked with other ins companies? That seems high unless you live on the water. Check out this link
Compare Homeowner's Insurance Rates.

Yes, until my fingers bled dialing. They are hammering me for age of home, wood construction. They go by age in city plattbook, can't get any of them to come out and inspect all the upgrades, even offered to pay for one. Starting to wonder if it's even worth it. Have friends in Miss that had total loss 30 miles inland (Katrina)and 3 years later have not gotten a dime as they are fighting over flood vs hurricane (windstorm), Of course they did not have flood as not in flood zone. Many of these same stories out there. So maybe keep the flood (gov) rather than take the chance on being screwed from insurance co. It's a mess.

[Mathguy]

Originally Posted by dlhanson

Florida politicians are reckless when it comes to property insurance. Floridians may pay below actuarially sound rates now but when the next big hurricane hits, the state of Florida will be in big trouble. From a recent WSJ editorial:

"Mr. Crist has thus guaranteed that Floridians, rather than the global insurance industry, will be on the hook for property damage when the next Katrina hits. Citizens is facing more than $400 billion in potential exposure, yet Citizens Chief Financial Officer Sharon Binnun was recently cited in the South Florida Sun Sentinel as saying it had only $3.4 billion in net assets. Anxious to keep voters happy, legislators have frozen Citizens premiums the past three years."

We are thinking about moving to Florida next year but the insurance situation gives us something to think about. If the State found itself hundreds of billions in the hole because of politician pandering, how would they make up the losses? Either insurance surcharges or taxes or both, I would presume. We could escape insurance surchanges by self-insuring but it could be impossible to escape taxes. Maybe we should rent rather than buy?

This is a brilliant post. The next big hurricane stretch to hit Florida will pretty much bankrupt the state.

What does this mean if you move there and then another Katrina? Well, you won't be able to insure via citizens because they will be toast...your rates will spike quite a bit PLUS a 10% surcharge will be placed on it by the state. They will also put surcharges on car insurance and most other types of insurance so you will pay more there as well plus more for others goods and services as those costs are passed along to consumers.

Frankly, if you do decide to move there...budget that in any given year you may need to pay a few thousand more for HOI. Also, don't buy anything on lower ground, near the coast, rivers, floodplains etc. AND FOR THE LOVE OF GOD buy the Federal Flood Insurance if you do live in that type of area.

[Mathguy]

Originally Posted by TriMT7

"400 billion" in potential losses for Citizens would assume complete policy limit claims made by every single Citizens policy holder.

Most people these days do not have to be insured by Citizens. Private insurance companies play the "we're so broke" game while engaging in the "windpool" scam that allows the parent company to make billions in profit and run to the legislature in Florida because the company's "Florida fund" is broke.


Nonetheless, like every state, we have a insurance guarantee association, funded by a portion of every premium paid in the state. If THAT ever goes insolvent, the state would just have to make up the difference by borrowing money, or begging the feds.

Citizens total exposure is closer to a TRILLION not 400Billion anymore and it quietly scares the heck out of the politicians in FL. (1.1million homes)

CAREFULLY READ THE FIRST SENTENCE OF THE LINK

Task force aims to lessen Citizens' risk exposure - Business - MiamiHerald.com

The last estimate I saw was another Andrew would cost Citizens 50billion give or take and they have <10billion to pay claims. Ok so you have 90 days to pay claims and you are going to scrape up 40billion dollars how?

In general, Insurance companies are trying to leave the state or reduce their writings....yet you claim they are making huge profits *somehow*. Yep, if no hurricane hits they make X billion. When the next Andrew hits they lose 10X billion.
What alternative universe are you from where companies making money want to write LESS business or stop altogether?

[FFZS]

Originally Posted by Dee74

You are smart to research this well. We are in south Tampa area in a home we have lived on for 23 years and are being run out from insurance. Home has been updated and 2/3 of it new construction on last 5 years. That said our HOI is $2800 yr and flood is $3200 both for $225k in coverage. We had done all this work to stay in our home and retire here, that now is looking more difficult.

Just last week inquired if we paid off our home and reduced coverage to say $85k to give us enough to start over and clear the lot in the event of a major loss what that would be and to my shock found out they won't let you insure for less than replacement cost or you can go bare,nothing in between so no point in paying off our home. We are at a major crossroads as we cannot retire and afford premiums like this and can't really afford to self insure as you cannot even buy just liability coverage in case you are sued.
It really does depend on where, how new, flood plain or not etc.
Good Luck

$3200 is way too much for a federally regulated insurance policy. you need to ask why you are paying too much. The only reason for paying too much is if the house was not built per code (without permits). Even if your house is an older house you should be rated as a pre-FIRm house which is cheaper than $3200.

[Dee74]

$3200 is way too much for a federally regulated insurance policy. you need to ask why you are paying too much. The only reason for paying too much is if the house was not built per code (without permits). Even if your house is an older house you should be rated as a pre-FIRm house which is cheaper than $3200.

Going to get on the phone again, as car insurance just went up $326 a year?? WTF no accidents,tickets ever. Nationwide just canceled us after 25 years and gave us a new sub company of theirs. Really getting sick of this insurance crap.

[Mathguy]

Originally Posted by Dee74

Going to get on the phone again, as car insurance just went up $326 a year?? WTF no accidents,tickets ever. Nationwide just canceled us after 25 years and gave us a new sub company of theirs. Really getting sick of this insurance crap.

All insurance in the state of Florida is ultimately controlled by the state. All rates are approved by them, the business environment etc etc etc.
When you see the state insuring 1.1 million homes, major insurers exiting the state and politicians pointing fingers (even though the state of Florida sets the insurance rates)....it's time to duck and cover if you can.

I'd call your agent about your rate increase. Could be a mistake, maybe other factors...consider taking a larger deductible?