Florida property insurance rates expected to jump 40% to 50% in June (Sarasota: for sale, to rent)

[Dave_n_Tenn]

Originally Posted by DovieHarding

Gee, it has significance in everything to do with insurance rates. It's called RISK. Look at the over-crowding, look at the number of houses and their proximity to each other within a plethora of subdivisions. Look at how close they are to each other....duh, it's called RISK - more houses, the more risk in a community - the more houses, the more potential CLAIMS (er, remember that little thing called RISK), the more houses the more demand for services (fire, erosion, water to put out fire, duh), the more houses in high winds and water intrusion the more possibility that the damage might fly across the street or next door, the more houses crammed in a subdivision the more likelihood to have problems with sewers, run-off, etc Use your head, pal, more people/lives/families risk profiles automatically rise. How about more houses actually built in or near a flood plain LOL.....the coast, the bay, all of the internal RIVERS, Streams, CREEKS all around the State of FL. Duh. How's that for a cogent explanation?

Illegal immigrants are not creating the problem... that's just stupid. Illegal immigrants ARE a problem, but not increasing insurance costs related to hurricanes in Florida They are mostly inland where agricultural work is available. They live in small homes or trailer parks.

Look at the demographics of a coastal communities vs inland. Example... Pt. Sewall Florida vs Indiantown Fl. Same county (Martin), one coastal one inland or Palm Beach or Belle Glade.

That's a pretty dumb analysis on your part. How about some data to support that.

[DovieHarding]

Nay, believe what YOU wish. The more PEOPLE (whether legal, illegal, transient, or from the moon and outer space) translates into MORE RISK. Insurance Companies attempt to manage or spread out RISK. That's also why automobile insurance has jumped sky high in FL as well....RISK. Sparsely populated ex-urban areas generally carry lower risk considering most ascertainable factors. It's really easy to understand, if you have no people, you have essentially NO RISK to manage . If you have NO PEOPLE WHO BUY HOUSES AT INSANE PRICING MATRICES, you have little RISK to manage. If you have tons of mindless, out of control people buying tons of houses in an uncontrolled frenzy you then have MASSIVE RISK to manage. Then you superimpose PRICE HIKES in replacement building materials/labour, then you have more PRICE RISK to manage....LOL. Again, a junior high school student knows this when fully explained to him/her/dog.

[DovieHarding]

Just for grins, RISKs associated with weather events can not be easily quantified in measuring RISK. It's a crap shoot, so insurance carriers jack up rates to ameliorate the gamble/loss. Again, the more people (buying, renting etc) the more likelihood of an insurance claim. No people? no problem! (no pooled risk) LOTS of new people (all kinds)? LOTS of PROBLEMS. lol

[Dave_n_Tenn]

Still nothing to back up the BS.

Still a fork in it.

[DovieHarding]

And don't forget. If your 300 thousand dollar house is now appraised by the County for 400 thousand dollars, in most cases you're going to get a bit of an increase in your taxes (save HSex), and if your nice little house gets that increase, the insurance company is also likely to raise your rates because now you think that phantom price accretion didn't cost you a dime LOL

[DovieHarding]

Think what YOU wish, nothin' personal. I know better having worked in the industry, et al.

[DovieHarding]

How's that for *dumb analysis ?? believe what one chooses Believe this for example only. Buying life insurance is like betting a faceless company that you're not going to die. Once you die, you're dead, you don't owe a dime to anyone. Many choose wisely to owe as much unsecured debt to everyone lol....and made sure the so-called 'estate' was 'broke" lol

[wondermint2]

In reading this article my takeaway is that Citizens Insurance wants to reduce their number of policies in FL by a large amount. And as it stands now if FL gets hit with another big hurricane next season Citizens could be in trouble. They're having a hard time finding reinsurance.

Ian damaged Citizens Property Insurance's surplus

https://winknews.com/2023/03/02/ian-...ances-surplus/

Chances are many of you have Citizens Property Insurance. It’s the largest property insurer in the state, but that wasn’t the goal when it came into existence in the 90s.

The insurer was supposed to be a last resort, but that’s not the case anymore.

In fact, Citizens Insurance has nearly 1.2 million policyholders, which is far too many households to cover without the right amount of surplus money.

The goal was to have around 450,000 policyholders.

Why so low? Because the larger Citizens Insurance is, if there’s a problem, a major storm, and the company’s surplus is eaten up, people living in Florida are going to have to for the bill. Not just customers but everyone.

That’s why companies like Citizens are on the hunt for reinsurance, something that protects insurance companies, and that is a challenge on its own.

“After Ian, the private industry, as well as Citizens and we took a hit on our surplus, and so we have less surplus to pay claims than we did before Ian that’s why we’re out in the market trying to secure reinsurance,” Tim Cerio said. “That’s why a lot of private insurers are trying to secure reinsurance and get their risk transfer programs in place. But the reinsurance market is tough right now, over. I mean, it’s a worldwide issue.”

[wondermint2]

Also mentioned in the article:

New reforms from a December special session are expected to help with that. For example, if any Citizens Insurance policyholder gets a quote from another insurer, and the quote is within 20% of what you’re paying at Citizens, you don’t have to take the deal from the other policyholder. You’ll get the boot from Citizens, though.

[DovieHarding]

well, that's the game of risk, it's like musical chairs most times! (by design)