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Florida Homeowner Insurance : Rapidly Rising Rates

October 18th, 2006 · 8 Comments

We live in the state with rapidly increasing rates – partly due to the hurricanes and a decision made by the state for every homeowner to “share the tab” for certain previous losses and to encourage insurance companies to stay in the state.

We’ve recently received our homeowner insurance quote for the coming year, a rate increase of 40%.  Of course, we contacted our agent to discuss the situation.  Now, we did adjust our insurance amount for replacement value of the home (minus the cost of the land) so that accounted for a small amount of the increase.  We are going to be shopping around for a better rate, but I don’t hold much confidence that we are going to find anything better. 

The topic of Florida homeowner insurance is hot right now, and many citizens are demanding some solutions.  A quick overview of some recent news articles on this topic show the extent of the problem:

The Bradenten Herald recently featured “Increase coverage, cut the cost of home insurance“, which outlines some ways to cut costs on insurance.  Basically, insuring your home for the replacement value of the house and not the mortage amount (which includes the valuation for the land). 

The Palm Beach Post has an article about an 86-year-old widow who has no mortage on her home and canceled her homeowners insurance because it was too costly.  

And the insurance crisis is hitting the condo owners as well, with some owners thinking of selling and getting out of the state due to the rising rates.

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Tags: Homeowner Insurance · Personal Finance

8 responses so far ↓

  • 1 Not Made Of Money: » Score 1 For Florida Homeowners | Nationwide’s 72% Increase Request Denied // Oct 18, 2006 at 6:10 pm

    [...] I previously wrote about the homeowners insurance difficulties in Florida.  This just goes to show an example of the types of increases we are battling, and though this proposal of 72% was turned down, it is just a matter of time until a “more reasonable increase” will be approved.   Bookmark to: [...]

  • 2 Not Made Of Money: » Can You Afford A Florida Condo? // Oct 19, 2006 at 10:15 am

    [...] Yesterday, I was writing about the homeowners insurance crisis here in Florida.  Well another issue that is not getting too much media attention is that homeowners associations fees are also rising rapidly.  The vast majority of condos in Florida belong to an “association” which provides the community features and benefits of a pool, clubhouse, common ground areas and maintenance, etc.  These association fees are paid either on a monthly or annual basis and can be quite substantial depending upon the amenities being offered.  The rates are rising (and in some cases rapidly) because of hurricane damage in the past couple of years combined with the increased property insurance costs.  If you don’t pay your fees, a lien can be placed on your condo by the association.  So, if you are considering that Florida condo you’ve always wanted, know that homeowners insurance is expensive (and sometimes hard to get) and that your association fees may be very high.   Bookmark to: [...]

  • 3 Not Made Of Money : Central Florida Real Estate :: Not Moving As Quickly // Oct 21, 2006 at 4:04 pm

    [...] I’ve been writing lately about the homeowners insurance rates in Florida.  We watch the home sales in our neighborhood, and things have definitely slowed down.  Houses are still moving, albeit not nearly as fast as they used to be.  We also see a lot of the “Assist To Sell” signs, with more homeowners trying to save some money.  Today The Housing Bubble blog mentions an Orlando Sentinel article that states, “there is a lot of real estate out there in Orlando.”  There is definitely a surplus of homes in our neighborhood.  Bookmark to: [...]

  • 4 Not Made Of Money : Paid The Homeowner Insurance // Dec 12, 2006 at 11:34 am

    [...] We paid the homeowner insurance bill.  I’ve written a lot about the increase in homeowner insurance rates for those who live in Florida.  A special legislative session is scheduled in January in an attempt to find some solutions.  This insurance crisis is pitting Floridians against each other; those in South Florida and coastal areas are wanting to decrease their insurance premiums by spreading the costs to all Floridians.  We do not live in South Florida or a coastal area, but we did have to pay a $20 fee (tax) to Citizen’s Insurance which was included in our homeowner insurance bill.  However, if some would have their way, we will be paying a lot bigger fee next year to Citizen’s.  In fact, there is a move by some to have the homeowner insurance costs subsidized at the federal level, meaning that all US homeowners will help to defray the costs.  Looks like there are going to be some really nasty fights coming up in January.  People that would advocate making the “State of Florida” provide the insurance need to remember where the State of Florida gets its money.  The money comes from the citizens of the State through taxes and if the State of Florida has to provide the insurance, then the taxes are going to rise throughout the State to cover the costs.  If you live in the State of Florida, you are going to be paying one way or another.  Bookmark to: [...]

  • 5 Not Made Of Money : Florida Property Tax Woes - Town Hall Meetings Scheduled // Jan 9, 2007 at 6:31 pm

    [...] I’ve written in the past about the Florida homeowners insurance problems, and now another financial issue facing homeowners is going to be addressed.  Florida legislators have announced that they will conduct a series of Town Hall meetings to hear ideas on the current property tax problems.  [...]

  • 6 Not Made Of Money » Homeowner Insurance - Florida Rates - Not A Lot Of Options // Nov 18, 2007 at 5:59 am

    [...] written extensively about the homeowner’s insurance problem here in Florida.  Our insurance is due for renewal soon, and we’ve been getting price quotes [...]

  • 7 Nathan // Apr 10, 2008 at 11:45 pm

    I’m in South Florida–recently had a Wind Mitigation Inspection done by a professional inspector (not one of the state-funded guys with an hour of training) and saved over $2,400 on my insurance premium. If anyone wants info I’d be more than happy to share. Also know a good insurance agent in the area that I’ve used for my last two homes.

  • 8 Andy Bryant // Oct 30, 2008 at 12:38 am

    Fast forward to today and the Florida homeowners insurance crisis is alive and well with State Farm Florida now trying to move forward with a massive rate increase on Florida homeowners insurance.

    I wanted to pass along information that helped me find affordable Florida homeowners insurance after I lost my homeowners insurance Florida with State Farm:

    http://www.homeinsurancebuyers.org

    There is also some excellent information here about the mess still brewing at Citizens Insurance:

    http://www.homeinsurancebuyers.org/FindingPrivateInsurance

    Thanks for the great work on your blog and for sharing this information to help other Floridians.

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