Florida’s ongoing home insurance crisis has captured the attention of real estate investors, who say that if unaddressed, rising insurance premiums could make it harder to obtain mortgages in areas vulnerable to extreme weather. I’m warning you.
According to data from the Insurance Information Institute (Triple I), Floridians currently pay the highest home insurance premiums in the country, with Sunshine State residents paying an average of more than $4,200 per year, compared to the national average of $1,700. It is a dollar.
The ongoing crisis stems from the excessive litigation that has characterized the state for years and has been fueled by the increasing frequency and intensity of extreme weather events such as hurricanes, floods, and tornadoes. , some scientists have linked these phenomena to climate. change.
The increasing number and devastating effects of these natural disasters will lead to an exodus of major insurance companies in the state by the end of 2022 and into 2023, leaving many residents without options for insuring their homes.
Insurance premiums in Florida are expected to continue rising this year as the risk of extreme weather events continues to increase, according to a recent report from Karen Clark & Company, a Boston-based risk assessment and management firm.
Additionally, insurance premiums are rising and will continue to rise. This is because construction costs, which are taken into account when determining how much it costs to rebuild a home after a disaster such as a hurricane, have increased by 40% since 2017.
“This is the biggest story in residential real estate for the next 10 years.” Real estate investor Sean O’Dowd writes: X, formerly known as Twitter. “If insurance premiums don’t continue to rise, it will be very difficult to get a mortgage in areas that are prone to hurricanes and wildfires,” he added.
His comments came in response to another social media user who manages a commenting account about the real estate industry who wrote that his parents’ insurance premiums in Florida “jumped from $2,500 to $6,000 in the last three years.” It was issued. The rate jumped by 50% in 2023 alone, the official said.
newsweek O’Dowd was reached for comment via direct message about X on Wednesday.
Several Floridians have previously written letters. newsweek Many say their premiums have reached a point where they can barely afford them. Broward County resident Robert Canter said his homeowner’s insurance premiums doubled last year to more than $7,000. He said he paid more than $10,000, including taxes, “just to live in the house.”
Mike Durham, who owns a three-bedroom holiday home with his family on Melbourne Beach, previously said: newsweek He said the property currently costs $11,000 a year to insure, adding that with premiums going up, “it’s going to sell out.”
Do you live in Florida and have been affected by rising home insurance costs? To share your story, contact g.carbonaro@newsweek.com. Your answer may be published in a future article.
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Newsweek is committed to challenging conventional wisdom, finding common ground and finding connections.