[sinatras]

Originally Posted by Lillie767

Not having the highest level of inflation in the US is nothing to brag about. Florida has higher inflation than the average south-eastern state.

The US Bureau of Labor Statistics published data which shows that the CPI for the US and for geographical areas.


12-month percentage change:

Tampa-St. Petersburg-Clearwater: 8.9% (CPI-U, January 2023, 12-month percentage change)
Miami-Fort Lauderdale-West Palm Beach: 9.9% (CPI-U, December 2022, 12-month percentage change)

South Region: 6.9% (CPI-U, January 2023, 12-month percentage change)

US: 6.4% (January 2023, 12-month percentage change)



https://www.bls.gov/cpi/
https://www.bls.gov/regions/home.htm
https://www.bls.gov/regions/southeast/

[Corrie22]

isn't rising house prices the main driver of Florida's inflation....

[beachmouse]

Originally Posted by Corrie22

isn't rising house prices the main driver of Florida's inflation....

But that only directly bites if you’re a renter or new homebuyer. A lot of long time residents with homesteaded properties have been largely shielded from rising housing prices. And could actually benefit from them when mortgage rates, and consequently HELOC rates were dirt cheap in parts of 2021-22.

[Corrie22]

but the cost of replacement is also figured in on the rate...building materials are still high

...the cost of building materials was a huge factor in the price of new homes

[LKJ1988]

Originally Posted by Corrie22

but the cost of replacement is also figured in on the rate...building materials are still high

...the cost of building materials was a huge factor in the price of new homes

Go bare blare and save some real money honey.

[Lillie767]

Originally Posted by Corrie22

isn't rising house prices the main driver of Florida's inflation....

Check the links in my post #10, supra. The BLS breaks out the CPI changes by component. The table near the bottom of the page shows the component CPI increase. Each component is then combined in a weighted average to produce the final CPI-U change number.


"In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period."

https://www.bls.gov/regions/southeas...ndex_tampa.htm

[Travelassie]

Originally Posted by logybogy

People are going to have to rethink how they utilize their insurance especially deductibles. The days of cheap insurance with $500 deductibles is over. The industry is moving to a catastrophic coverage model where if you want a decent rate you are going to need to go up to $10k deductibles and 5% or 10% deductibles for hurricane. Put the savings in an investment account for the deductible. The people who use their $500 deductibles to get free roofs with assignment of benefits have destroyed the industry and the new law banning that will help but it will take years and a little bit of luck (no hurricanes) to get the industry healthy again.

There have not been $500 insurance deductibles for homeowner's insurance in FL since shortly after hurricane Andrew in 1992. The deductibles have generally been around 2% of a dwelling's appraised value, more like $6000-10,000 depending on the value. There are also options for higher percentages of the appraised value for somewhat cheaper premiums.

Don't get me started on the entitlement mentalities of those who assume if they need a new roof for any reason ( age of the roof, leaking for any reason, but not damaged under conditions covered by the insurance policy) the insurance company must foot the bill for that roof replacement. That, and other insurance fraud, is one of the reasons FL's insurance industry is in the mess it is in.

[gatorlyn]

It is rough for those who may have had to spend some upfront costs (or even took a pay cut) in order to move to FL, hoping to rely on the supposedly low COL and recover those costs in the long run. They are definitely rethinking those decisions, with what has happened to the state in the last 2 years

[sinatras]

Originally Posted by gatorlyn

It is rough for those who may have had to spend some upfront costs (or even took a pay cut) in order to move to FL, hoping to rely on the supposedly low COL and recover those costs in the long run. They are definitely rethinking those decisions, with what has happened to the state in the last 2 years

All the "freedom" doesn't actually matter if you can't afford to live here.

[Mathguy]

Originally Posted by Travelassie

There have not been $500 insurance deductibles for homeowner's insurance in FL since shortly after hurricane Andrew in 1992. The deductibles have generally been around 2% of a dwelling's appraised value, more like $6000-10,000 depending on the value. There are also options for higher percentages of the appraised value for somewhat cheaper premiums.

Don't get me started on the entitlement mentalities of those who assume if they need a new roof for any reason ( age of the roof, leaking for any reason, but not damaged under conditions covered by the insurance policy) the insurance company must foot the bill for that roof replacement. That, and other insurance fraud, is one of the reasons FL's insurance industry is in the mess it is in.

Even if you just look at the car insurance, the big reason some states have much higher rates is the litigation and state laws establishing incentives to sue and making it lucrative etc. Another big reason would be uninsured drivers.

It's not just car insurance either, Florida is a great state for trial lawyers.