Florida Homeowners Abandoned for Insurance Lobbyists
The existing 2023 insurance crisis under Governor Desantis in Florida has been distressing for homeowners, leading many to consider fleeing the state altogether. The escalating premiums and dwindling availability of coverage have created a challenging situation for those living in the proverbial anti – COVID, anti-woke, and anti-LGBTQ+ Sunshine State. By examining the statistics and insurance data, we can gain a deeper understanding of this crisis and its impact on homeowners in Florida.
One of the most alarming aspects of the insurance crisis in Florida is the skyrocketing premiums. According to the Florida Office of Insurance Regulation, the average homeowner’s insurance premium increased by 32% between 2016 and 2020. This continuous surge in premiums tremendously pressures homeowners’ finances, making it increasingly difficult to afford adequate coverage.
The availability of insurance coverage has significantly decreased, particularly in high-risk areas like coastal regions. Data from the Insurance Information Institute reveals that between 2015 and 2020, the number of policies provided by the state-backed Citizens Property Insurance Corporation increased by 45%. This shift shows private insurers are scaling back their coverage, leaving homeowners with limited options and forcing them to rely on state-supported insurance providers.
Furthermore, the data highlights the vulnerability of Florida homes to natural disasters. According to the Florida Division of Emergency Management, the state experiences an average of 21 hurricanes and tropical storms per decade. This high frequency of severe weather events contributes to significant property damage, leading insurance companies to face substantial claims and increasing homeowners’ premiums.
These combined factors created a crisis, driving many homeowners to consider leaving Florida. A study by the University of Florida’s Shimberg Center for Housing Studies found that between 2017 and 2018, the state witnessed a net outmigration of approximately 52,000 individuals. The inability to find affordable and adequate insurance coverage is a crucial factor in this departure.
The consequences of the insurance crisis extend beyond financial burdens and population decline. Minority homeowners and prospective home buyers distinguish the impact as part of an exasperating increase in the widening wealth gap and continued “redlining” and restricting efforts to undermine communities of color. They often leave homeowners facing difficulty getting insurance or experiencing substantial premium increases without the means to protect their investments adequately. The insurance crisis could lead to diminished maintenance and repairs, exacerbating the deterioration of properties. The decline in property values and the potential increase in neighborhood blight are foreseeable consequences of the current crisis.
In response to this crisis, policymakers, and insurance regulators must explore viable solutions to ensure access to affordable and comprehensive insurance coverage for Florida homeowners. Encouraging competition among insurers, implementing stricter regulations to prevent unfair pricing practices, and investing in mitigation efforts to reduce the risk of property damage can be potential steps toward resolving the crisis.
In conclusion, the ongoing insurance crisis in Florida presents a dire situation for homeowners. Escalating premiums, diminished availability of coverage, and the susceptibility to natural disasters have resulted in many residents contemplating leaving the state. By acknowledging the statistics and insurance data, most GOP House and Senate policymakers could work with Democratic state elected representatives towards finding solutions that guarantee affordable and comprehensive coverage for homeowners, ultimately stabilizing the insurance market in Florida. But will they? Is the question, given the Florida Governor’s wife’s alleged political sway and influence in her husband’s politics?
