When thinking about the agents, remember the rate increases in the last year – that translates automatically into increased commission income with no work for it. Not like the agents had to fight to keep the business. Plus, SF is still going to write auto business.
The Florida OIR and Legislature, not to mention the governor, don’t have a clue and it’s going to get worse before it gets better as a result.
Let them charge what they want and if you dont want it, Cancel it. Free market economy is what its called. I personally would rather pay more to get an A rated carrier. Christ/Law makers please let me.
Another thing – most of the hostile Florida writers accuse the insurance industry of making millions of dollars – but never quite reconcile that claim with the reality that insurers are pulling out and cutting back – if in fact it was possible to make all that money without the associated risk, why wouldn’t all insurers rush in to write business?
Simple logic seems to be in short supply down there.
The bottom line is that is just tough for the average Florida citizen to pay between $2,500 and $4,000 a year for homeowners insurance with a $5,000 Hurricane deductible. Thats everyone not just the folks on the beach paying 10K a year so if Joe Citizen takes home 25K a year and he pays 10% of that for just one type of insurance then its tough. Figure what your take home pay is and determine if you would be ok with paying 10% of that to an Insurer (not including auto Ins, etc.) I think the common man is just looking for some help from really anyone who might provide it.
Yes, the scenario you described is tough. But that is the point – insurance companies have not been able to charge the correct premium due to years worth of regulatory meddling. If the correct premium would have been charged, someone making $25K annually wouldn’t be living on the beach . . . and the exposure wouldn’t be so high. Insurance SHOULD BE about collecting the right amount of premium for the right amount of exposure, but Florida is a perfect example of where rates were suppressed, thus putting the state in this mess.
Sorry – no solution to offer; just pointing out what hasn’t been said.
The little guy who lives inland cannot afford to pay the $2500+ that is routinely being charged for HO. He lives no where near the beach. Salaries are notoriously low in FL in the first place. It will get to the point where it is unaffordable to MOST people and then what? Mass exodus?
There needs to be some sort of subsidization for the little guy. None whatsoever for those who choose to build in places where bldg should not be.
Maybe there should be absolutely NO availability of insurance in areas where bldg should not be happening. If those risks are self insured, the companies would not have the billions in payouts for damage all along the coast. This way when the total losses occur, these areas will be returned to their natural state and all will be well in this part of the world.
Here is the entitlement mentality. Why does the government have to subsidize anyone for this in FL? If you can’t afford it, rent or move. Sorry not to be sympathetic, but I have a lot I can’t afford and I don’t have these things. The government doesn’t owe me anything.
Sad but true. It would be nice so that everyone could have a subsidized lifestyle in Paradise, but it simply can’t be done. In Cali for instance, there are areas you can’t build on because of the danger of landslides. Other areas are restricted because of fire exposure. The whole state is subject to EQ, which an awful lot of people choose to self insure. It makes it more expensive to live in Cali because the amount of open space thats left is finite and relatively small. People choose to pay for it or move somewhere else, like Oregon, Nevada or Arizona. Folks in Fla should belly up and make the same choice. Pay for expensive HO insurance, self insure or move somewhere else.
I honestly don’t think that someone living in a slightly older run down middle class neighborhood that is nowhere near a beach would consider Florida a paradise. They would probably consider it just a place to live and where they and their family have lived their whole life. I do think you have brought to light an important point though. I think it would be reasonable to assume that people who read an article like this must assume that everyone lives in a nice home in a nice neighborhood near a nice beach because that is what the Ads on TV show or that is what people see when they visit. The reality is much different. Just imagine the lower middle class neighborhood in your own hometown. Its the same thing in Florida. Not everyone lives on or even near a beach.
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
When thinking about the agents, remember the rate increases in the last year – that translates automatically into increased commission income with no work for it. Not like the agents had to fight to keep the business. Plus, SF is still going to write auto business.
The Florida OIR and Legislature, not to mention the governor, don’t have a clue and it’s going to get worse before it gets better as a result.
Let them charge what they want and if you dont want it, Cancel it. Free market economy is what its called. I personally would rather pay more to get an A rated carrier. Christ/Law makers please let me.
If I was an insurer in Florida- I’d be RICH!!! I’d have millions… BILLIONS!
THen, when I have all the money, I’d pull out and retire… to FLORIDA!!!
BAWHAHAHAHAH!!!
Another thing – most of the hostile Florida writers accuse the insurance industry of making millions of dollars – but never quite reconcile that claim with the reality that insurers are pulling out and cutting back – if in fact it was possible to make all that money without the associated risk, why wouldn’t all insurers rush in to write business?
Simple logic seems to be in short supply down there.
The bottom line is that is just tough for the average Florida citizen to pay between $2,500 and $4,000 a year for homeowners insurance with a $5,000 Hurricane deductible. Thats everyone not just the folks on the beach paying 10K a year so if Joe Citizen takes home 25K a year and he pays 10% of that for just one type of insurance then its tough. Figure what your take home pay is and determine if you would be ok with paying 10% of that to an Insurer (not including auto Ins, etc.) I think the common man is just looking for some help from really anyone who might provide it.
Yes, the scenario you described is tough. But that is the point – insurance companies have not been able to charge the correct premium due to years worth of regulatory meddling. If the correct premium would have been charged, someone making $25K annually wouldn’t be living on the beach . . . and the exposure wouldn’t be so high. Insurance SHOULD BE about collecting the right amount of premium for the right amount of exposure, but Florida is a perfect example of where rates were suppressed, thus putting the state in this mess.
Sorry – no solution to offer; just pointing out what hasn’t been said.
The little guy who lives inland cannot afford to pay the $2500+ that is routinely being charged for HO. He lives no where near the beach. Salaries are notoriously low in FL in the first place. It will get to the point where it is unaffordable to MOST people and then what? Mass exodus?
There needs to be some sort of subsidization for the little guy. None whatsoever for those who choose to build in places where bldg should not be.
Maybe there should be absolutely NO availability of insurance in areas where bldg should not be happening. If those risks are self insured, the companies would not have the billions in payouts for damage all along the coast. This way when the total losses occur, these areas will be returned to their natural state and all will be well in this part of the world.
Here is the entitlement mentality. Why does the government have to subsidize anyone for this in FL? If you can’t afford it, rent or move. Sorry not to be sympathetic, but I have a lot I can’t afford and I don’t have these things. The government doesn’t owe me anything.
Sad but true. It would be nice so that everyone could have a subsidized lifestyle in Paradise, but it simply can’t be done. In Cali for instance, there are areas you can’t build on because of the danger of landslides. Other areas are restricted because of fire exposure. The whole state is subject to EQ, which an awful lot of people choose to self insure. It makes it more expensive to live in Cali because the amount of open space thats left is finite and relatively small. People choose to pay for it or move somewhere else, like Oregon, Nevada or Arizona. Folks in Fla should belly up and make the same choice. Pay for expensive HO insurance, self insure or move somewhere else.
I honestly don’t think that someone living in a slightly older run down middle class neighborhood that is nowhere near a beach would consider Florida a paradise. They would probably consider it just a place to live and where they and their family have lived their whole life. I do think you have brought to light an important point though. I think it would be reasonable to assume that people who read an article like this must assume that everyone lives in a nice home in a nice neighborhood near a nice beach because that is what the Ads on TV show or that is what people see when they visit. The reality is much different. Just imagine the lower middle class neighborhood in your own hometown. Its the same thing in Florida. Not everyone lives on or even near a beach.