Buying Property in A Hurricane Region (insurance, homes, earthquakes)

[Panam]

Lately i've had a dilemma...

Ive been thinking about purchasing a property here in SoFla to live in (my principal residence). As all property owners know, you cant buy without investing equity. What would happen to my equity if a damaging hurricane hit my home? I realize property insurance exists but isn't Citizens Insurance broke and State Farm keeps raising rates to ridiculous levels?

I was here in 2005 when the last hurricane hit but I didn't own anything. I remember the insurance companies refusing to pay out 100% of damage costs thus leaving property owners to come up with the difference out of their own pocket

Although SoFla hasn't had a major hurricane in 7yrs, the threat is very real that one will strike with each passing hurricane season. Thus my dilemma is, why buy property here and put my equity at risk?

Keep in mind also that after a hurricane hits, a damaged home is much harder to sell (like we don't have a hard enough time now selling homes in this economically depressed market)

Am I missing something?

Thanks in advance for your insight

Cheers

[rootzdread]

State Farm has raised policies to ridiculous levels. They raised my premium to 3,800 this year! That's a 1 K spike. So I've left them and trying to get in with Citizens. I haven't heard Citizens is broke though. Me being a native South Floridian, I rather deal with the hurricanes than snow storms and earthquakes elsewhere, but some people are just too "fraid" of hurricanes and prefer the latter.