Fla. insurance crisis deepens as rates soar, companies fall (Miami: 2014, house)

[pockets89]

Insurance is such a scam in this state. Quick question for you guys if anyone has insight if I have a 2% Deductible and I have to pay like $10k for insurance to even kick in if i have minimal damage to my home is it better not to file a claim at all so my rates wont inevitably shoot up in 2023? They will go up but probably even more if i file a claim correct?

[GreenhouseZ]

Originally Posted by pockets89

Insurance is such a scam in this state. Quick question for you guys if anyone has insight if I have a 2% Deductible and I have to pay like $10k for insurance to even kick in if i have minimal damage to my home is it better not to file a claim at all so my rates wont inevitably shoot up in 2023? They will go up but probably even more if i file a claim correct?

Best case scenario, your rates would go up. Worst case, and most likely to happen, is that your policy will be cancelled by your insurance carrier. My brother's neighbor still has a blue tarp over his entire roof after years of suing his carrier to pay for repairs or replacement.

In FL, you only want to file a claim if you experience catastrophic loss. Then again, most homeowners don't have the money to pay for expensive home repairs. Now the massive devastation caused by Ian will likely bring the HOI situation to a head. Insurance companies won't be able to fund the massive claims and most homeowners don't have the funds to pay for extensive repairs or rebuild their home out of pocket. This is a terrible situation that is about to unfold.

Hurricane Andrew in 1992 was a reset to building codes. Ian might be a reset to the insurance problem in FL.

[pockets89]

Originally Posted by GreenhouseZ

Best case scenario, your rates would go up. Worst case, and most likely to happen, is that your policy will be cancelled by your insurance carrier. My brother's neighbor still has a blue tarp over his entire roof after years of suing his carrier to pay for repairs or replacement.

In FL, you only want to file a claim if you experience catastrophic loss. Then again, most homeowners don't have the money to pay for expensive home repairs. Now the massive devastation caused by Ian will likely bring the HOI situation to a head. Insurance companies won't be able to fund the massive claims and most homeowners don't have the funds to pay for extensive repairs or rebuild their home out of pocket. This is a terrible situation that is about to unfold.

Hurricane Andrew in 1992 was a reset to building codes. Ian might be a reset to the insurance problem in FL.

Thanks a lot for the reply and insight Greenhouse. I had a sinking feeling this would be the outcome and insurance in Florida needs to have statewide reform or the whole system is basically a scam if these insurance companies refuse to payout for those who lost everything.


As soon as I payoff my mortgage I am going to cancel home insurance entirely since I don't see the point of paying for something where if I did file claim I would have to fight legally for fair payout.

[GreenhouseZ]

Originally Posted by pockets89

Thanks a lot for the reply and insight Greenhouse. I had a sinking feeling this would be the outcome and insurance in Florida needs to have statewide reform or the whole system is basically a scam if these insurance companies refuse to payout for those who lost everything.


As soon as I payoff my mortgage I am going to cancel home insurance entirely since I don't see the point of paying for something where if I did file claim I would have to fight legally for fair payout.

You're better off putting that money aside into a separate emergency fund.

HOI reform is desperately needed here. As much as I dislike insurance companies, the reality is it's getting more costly to rebuild, so it's not realistic to expect to pay the same rates from years ago when building materials cost more. Insurance fraud is another problem.

I don't know anyone in S. FL whose HOI hasn't been cancelled at some point. My SIL lives in central FL and her rates have significantly gone up. The last time we had our home inspected, out of the blue request by insurer, the inspector told us our home was in great condtion; well maintained with impact windows, exterior doors and garage door, etc. and would get a significant discount as a result. We didn't get a discount, but we did get a letter informing us our policy wouldn't be renewed. That's when I vowed to cancel our insurance as soon as we paid off our mortgage, and we did.

Anyway, it's a mess that can no longer be dismissed.

[1rainman]

The 50s and 60s houses here are all concrete block. Then they started using less and less concrete. Now all the new houses are concrete again. But there's not much damage typically other than roof flying off usually just shingles and trees falling down and water if you aren't on a hill.

The problem is they will bill the insurance company some insane amount for a weeks worth of work or a couple days like roofing or whatever.

[loves2read]

Originally Posted by GreenhouseZ

Best case scenario, your rates would go up. Worst case, and most likely to happen, is that your policy will be cancelled by your insurance carrier. My brother's neighbor still has a blue tarp over his entire roof after years of suing his carrier to pay for repairs or replacement.

In FL, you only want to file a claim if you experience catastrophic loss. Then again, most homeowners don't have the money to pay for expensive home repairs. Now the massive devastation caused by Ian will likely bring the HOI situation to a head. Insurance companies won't be able to fund the massive claims and most homeowners don't have the funds to pay for extensive repairs or rebuild their home out of pocket. This is a terrible situation that is about to unfold.

Hurricane Andrew in 1992 was a reset to building codes. Ian might be a reset to the insurance problem in FL.

News said only 30% of people in Ft Myers area had flood ins
If they were renters they wouldn’t need it and likely couldn’t get it
So think news might be skewed in some way
I would think most of that w older homes and low areas would be in flood plain and require flood ins if there was mortgage on home
We had home in TX and minimum left to pay compared to value
New flood ratings by FEMA said part of attat he’d garage was in new flood plain and we had to get flood ins
We had our own flood survey done and showed it was only small area of yard…nothing by foundation
So no flood ins required
But that was TX which also has strong insurance lobby to screw policyholders

[Mathguy]

Originally Posted by pockets89

Thanks a lot for the reply and insight Greenhouse. I had a sinking feeling this would be the outcome and insurance in Florida needs to have statewide reform or the whole system is basically a scam if these insurance companies refuse to payout for those who lost everything.


As soon as I payoff my mortgage I am going to cancel home insurance entirely since I don't see the point of paying for something where if I did file claim I would have to fight legally for fair payout.

That poster made a lot of claims that are anecdotal and possibly inaccurate second hand information.

I'd suggest you do a lot more homework before fully accepting a random internet post and using that as the basis for a major financial decision.

P.S. For all we know the person that told them the insurance company wouldn't cover may have missed their payment and was embarrassed\fishing for sympathy because they let coverage lapse.

[Mathguy]

Originally Posted by GreenhouseZ

Best case scenario, your rates would go up. Worst case, and most likely to happen, is that your policy will be cancelled by your insurance carrier. My brother's neighbor still has a blue tarp over his entire roof after years of suing his carrier to pay for repairs or replacement.

In FL, you only want to file a claim if you experience catastrophic loss. Then again, most homeowners don't have the money to pay for expensive home repairs. Now the massive devastation caused by Ian will likely bring the HOI situation to a head. Insurance companies won't be able to fund the massive claims and most homeowners don't have the funds to pay for extensive repairs or rebuild their home out of pocket. This is a terrible situation that is about to unfold.

Hurricane Andrew in 1992 was a reset to building codes. Ian might be a reset to the insurance problem in FL.

2004-5 was also a "reset to building codes"...which they then backed off as too costly.

The estimated losses to Citizens is about 4bil. which they have but this will drive more people to insure with them and they will need to build up reserves so prices are going to go up.

[wondermint2]

I heard an estimate on the radio that FL damage from Hurricane Ian could end up being around $100 billion. They said as a result homeowners insurance could go up by 30% next year.

[beach43ofus]

The state of Florida will have to financially back-up the insurance industry here, and the state laws must be written to stop the crooked roofing contractors from stealing from us all.

You would think the insurance industry is lining the pockets of Florida law makers a lot more than crooked roofing contractors are.