Florida has no income tax. Tens of thousands of middle-class and wealthy families living in tax burden blue states are packing up their bags and moving to the tax-friendly Sunshine State. While tropical weather and lower taxes are a relief for many Northerners who have moved, many are now finding out that property insurance rates are out of control.
Florida's Office of Insurance Regulation had approved a wave of insurance rate increases due to soaring litigation costs, higher catastrophe claim losses following multiple natural disasters over the past few years, and rising reinsurance costs.
Insurance Business Magazine reports some property insurance companies registered with the state to increase their rates by double-digit rates.
"Florida's insurance market is one of the most complexes in the world," Florida's Office of Insurance Regulation spokesperson Karen Roach told News 6 WKMG.
"The property market is facing significant challenges, as the frequency of claims increases and those claims become more expensive," Roach said.
Roach explained the insurance industry was facing multiple challenges in the state due to increased litigation, higher catastrophe claim losses, and rising reinsurance costs.
Federal Association of Insurance Reform president Paul Handerhan said that after years of natural disasters, such as hurricanes, "the vast majority of the insurers who are writing homeowners' insurance in the state of Florida have been posting underwriting losses for the last five years."
Handerhan warned the state's insurers are "definitely in a tenuous financial position right now."
Rate increases among property insurers are bad news for the working-poor as it could make owning a home in the state unaffordable.
"I was flabbergasted," Karlos Horn,35, told Reuters, who owns a single-family home in Hendry County, Florida. He said his premium doubled to $200 per month last August.
Horn said his monthly insurance payment is about half of his $400 mortgage payment. For many low-income folks, like Horn, owning a home in the state as insurance premiums surge will take away consumption to much-needed services industries, such as restaurants and department stores.
Lee Gorodetsky, an insurance agent in Fort Lauderdal, said he could not remember such steep rate hikes during his three-decade career. "The last two years have been the worst we've seen," he said.
Florida's insurer of last resort, Citizens Property Insurance Corp, have said many folks are turning to them. The firm handles high-risk customers who cannot obtain other insurance or must pay too high rates.
As of Feb. 5, Citizens reported a 23% increase in policies from a year ago. "The growth signals an unhealthy broader market by showing that industry experts said that typical coverage is not as widely available," Reuters said.
Insurers pass along costs to consumers in the form of premium increases making affordable living in some parts of the state unaffordable. These are some of the hidden landmines that one should consider when moving to the state.
PLEASE BE SURE TO READ OUR DISCLAIMER AT THE BOTTOM OF THE PAGE
This website exists for entertainment purposes only. The reader is responsible for discerning the validity of information posted here, be it fictional or based on real events or people. The content of posts on this site, including but not limited to links to other web sites, are the expressed opinion of the original poster and are in no way representative of or endorsed by the owners or administration of this website. The posts on this website are the opinion of the specific author and are not statements of advice, opinion, or factual information on behalf of the owner or administration of JT Irregulars. This site may contain adult content and if you feel you might be offended by such content, you should log off immediately.
Not all posts on this website are intended as truthful or factual assertion by their authors. Some users of this website are participating in internet role playing, with or without the use of an avatar. NO post on this website should be considered factual information on face value alone. Users are encouraged to USE DISCERNMENT and do their own follow up research while reading and posting on this website. JT Irregulars reserves the right to make changes to, corrections and/or remove entirely at any time posts made on this website without notice. In addition, JT Irregulars disclaims any and all liability for damages incurred directly or indirectly as a result of a post on this website.
This site is provided "as is" without warranty of any kind, either expressed or implied. You should not assume that this site is error-free or that it will be suitable for the particular purpose which you have in mind when using it. In no event shall JT Irregulars be liable for any special, incidental, indirect or consequential damages of any kind, or any damages whatsoever, including, without limitation, those resulting from loss of use, data or profits, whether or not advised of the possibility of damage, and on any theory of liability, arising out of or in connection with the use or performance of this site or other documents which are referenced by or linked to this site.
Some events depicted in certain posting and threads on this website may be fictitious and any similarity to any person living or dead is merely coincidental. Some other articles may be based on actual events but which in certain cases incidents, characters and timelines have been changed for dramatic purposes. Certain characters may be composites, or entirely fictitious. We do not discriminate against the mentally ill!
Administrators may close an account, remove any post or comment and cancel author accounts as they, alone, deem necessary. You may contact the administration at firstname.lastname@example.org to report inappropriate use or to ask for the removal of specific material. The administration retains the final decision of what content constitutes appropriate use and what content is displayed.
Fair Use Notice: This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. Users may make such material available in an effort to advance awareness and understanding of issues relating to civil rights, economics, individual rights, international affairs, liberty, science & technology, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C.Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.