The skyrocketing cost of insurance premiums in Florida is leading residents to drop their insurance, consider selling their home, and even move out of the state, according to recent reports.
For years now, the sunny, vibrant state has been a magnetic destination for many Americans—a phenomenon which has been driving up demand for housing, especially during the pandemic, as well as home prices.
But while Florida was the number one state in the country that people moved to in 2022, it was also the one with the highest number of residents wanting to relocate, according to a SelfStorage.
Midwesterner here. Is this because of bad construction mixed with climate change causing stronger storms? I’ve been seeing much lower quality new construction up here and I’m curious if houses are just becoming total losses during storms instead of repairable.
They mention construction costs are partially to blame but I can’t believe that and shareholders are the only thing boosting it by that much.
Whatever it takes to finally get people to realize that living in a disaster zone is a terrible idea.
How many more years before all of Earth is a disaster zone?
All of Earth has always been a disaster zone. Do you realize how incredible it is that we don’t all get eaten by lions every day like our ancestors did? Lol
20
How very optimistic of you.
The old folks home is gonna be lit. Can’t wait.
The home or the Ättestupa?
Depends on how far out the astroid is
Don’t look up.
The current crisis isn’t so much about climate change as it is an insurance market so rampant with fraudulent roof damage claims that the market can’t bear it. FL legislature tried to correct this but before the law took effect a flood of claims were filed.
Climate change will only make this worse, ofc.
My understanding is that the substantial majority of roof damage claims were legitimate and attributable to predatory roofing companies that would finance and install new roofs after a storm at a huge discount, they’d install a shitty fucked up roof, then would sell the debt to a third party servicer, and then the roofing company would close up shop, rebrand under a new name, and do it again. By the time the roof fails, the original company is long gone leaving the homeowner and the insurers holding the bag.
The legislature and the insurers realized they had a impending consumer crisis and loosened the laws about paying these claims, and essentially opened the door to the fraud.
I wonder if the real issue at this point is that Florida just attracts fraudsters. It was their laws that allowed contractors to have a revolving door of LLC’s.
I’m sure more deregulation is the answer.
Of course it is. Nobody will do business with the shitty roof company that no longer exists ever again. See, the invisible hand works just fine, and might even give you a handjob if you pay it enough.
People move to Florida for the same reason why people use to move to California. So you wonder when housing prices will absolutely soar. Also, lack of natural disaster preparedness is something that can’t be ignored in Florida. Deregulation won’t solve that problem.
But when you have banned all wokeness (whatever that is), surely all problems will be solved?
Would be sick if we could pull a Looney Tunes and saw the fucking thing off from the rest of us. Let it float away and sink into the Atlantic.
You mean like this?
You don’t need to saw it off, climate change should take care of it.
That’s too slow, though. They’ll all migrate north and infest the rest of the country in the time it takes for the state to submerge. No, the humane thing is to get it over quickly and tbh they’ll probably thank us for letting their state “secede” from the woke liberal U.S. win/win
Let’s fund it boys
We currently are… with oil subsidies.
Build a big saw and saw it off! And make the Atlantic ocean pay for it!
according to a SelfStorage
Lol, what?
They didn’t finish the sentence
…according to a SelfStorage service clerk working in Tampa /S
It’s a storage unit company, so presumably they have their own moving service or often connect people with other moving services. They’d be able to see the trend
Yeah… that still seems like some extremely flimsy evidence to base an article on.
Edit - didn’t notice this was from Newsweek. “Journalism”
Maybe I should connect them with my local bartender. He’s full of information. Qualification? He talks to people.
The article also mentions how storms are becoming increasingly deadly, which they’re not, necessarily. It’s so up and down year to year it’s hard to pick out an actual trend.
What kind of insurance are we talking about here?
Home
Home insurance, same thing’s happening in Louisiana and California
Definitely happening in Louisiana. My insurance broker called me in a panic yesterday to let me know how high my renewal will be this year, and it is very, very high.
I’m going to eat the increase because there’s no other company offering lower rates. I live in an area hit by hurricanes, and I know insurance companies are for-profit businesses, so I’ve been expecting this.
At this point, I’m just grateful the company didn’t pull out completely.
Very interesting, do you see yourself just leaving because of climate risks or high insurance rates?
Insurance typically works off historical data to evaluate risk from my understanding, and having something as disastrous as the Miami beach condo collapse bodes a bad sign for insurance companies, especially given the terrible and absolutely incompetent rescue effort during the aftermath.
By the way, I’m shocked at how quickly the Miami condo collapse left the news cycle.
This is the first I’ve heard about it. When did it happen?
Fuck me. They even knew something was wrong…
Thank you for the article.
To be fair to Florida, that condo was built pre-Andrew and they revised their entire building code after Andrew. There aren’t too many large building built pre-Andrew anymore because they were all built as cheap as possible to laundrr drug money.
That being said, there are a million reasons why i would never move to Florida, and the only building codes that can prevent your house getting inundated by flood surge is by putting it on stilts, so no shocker that the premiums are skyrocketing. Same with fire insurance in California right now.
I’d build a 3d printed house that is on a raised slab in Florida and in Cali. Anything out of wood would be a waste
In California you’d largely be fine as long as you take care to have land around your house and keep it defensible. A lot of the fires that get into towns are because those recommendations and regulations get ignored in favor of trying to live in a forest as much as possible.
You can do everything roght but your neighbors might not. I have family that lost thier home a few years ago in a fire and have moved to San Fran now
Absolutely. I meant to convey that. I’m sorry if I was unclear.
Alternatively just build it dirt cheap and expect to rebuild every year. Disposable housing, the real american way.
Why not a boat? Hear of the storm then you just float away
3d printed would likely be cheaper
The building collapse was due to bad building code for sure; however, the apathy that followed the tragedy, both from rescue workers and the public at large, was really disheartening.
Iirc Florida passed some kind of law requiring coverage no matter where a structure is. And the only way the companies could make it work was massive premium increases because the places they’re being forced to cover literally have to be rebuilt every year. This was after the federal government said it wouldn’t offer disaster insurance on those zones anymore.
Can we build a wall to prevent them crossing the border to America?
Maybe we can cut the whole peninsula off and refer to it as the Great Castration.
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Don’t be ridiculous. A bunch of little saws will do just fine
Bugs did nothing wrong
Bugs bunny or the arachnids of klendathu?
They got Buenos Aires, not Florida. Unless I missed that bit in Starship Troopers. Maybe in the book? Haven’t read it in years.
It’s just a joke on “bugs”.
Yeah it was BA in the book too.
Just be brownish, and you’ll get a free flight to New England!
A seawall.
You can’t build a seawall on deteriorating limestone, that’s why Miami is doomed.
…and Cuba’s gonna pay for it.
Doesn’t matter to me, they think I live in a third world communist hell hole so they won’t move where I live anyway. Never thought I would say this but… thank you Fox News!
That’s the free market meeting climate change. It will get worse.
You voted for it… You get what you get, and you don’t get upset.
Actually I very specifically voted against it, but my vote wasn’t enough. I’m really hopeful that the GOP will finally just implode now that the MAGAts and the more traditional trickle-down conservatives are at each others throats, but I’m also not naive enough to think that’s guaranteed or even likely. With the luck we’ve been having lately most likely some even worse more virulently stupid and corrupt version of the GOP will rise from the ashes.
It won’t be long, and in Florida the cost for the mortgage will be neglectable in comparison to the costs of insurance.
The big downside will be that Floridians will move out of Florida and spread elsewhere. Maybe it is time for Georgia and Alabama to invest in a massive fence?
A wall. A sea wall.
Negligible.
This isn’t just a Florida problem.
It’s happening here in southern Louisiana. My insurance premium has been steadily increasing for the last 3-5 years.
Also, we’re going through a drought which is causing a saltwater intrusion into our wetlands and wildfires in the marshes.
https://www.drought.gov/states/louisiana https://gohsep.la.gov/emergency/Saltwater https://www.wdsu.com/article/heavy-smoke-filling-the-air-in-new-orleans/45608195
There is items that are either unique to Florida or are prevalent in Florida that make it the kind of state where this problem will happen first.
Unique to Florida is a lot of pseudo scammy ways that repairs occur after natural disasters which increase premium costs due to lawsuits causes by reconstruction occurring before appraisal.
Not unique but prevalent are the hurricanes and common flooding.
Floridian here. My mom currently has Citizenship Insurance. Her rates will increase by about 11.5% by the end of the year.
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40% of voting Floridians voted against DeSantis, Florida is also the state with the third highest Jewish population, I’m fairly certain that nowhere near all of Florida has “Nazi” politics.
Maybe try not sounding like an ignorant by generalizing the third most populated state, which is also just as mixed as the other three most populated states. You’re just sounding like those idiots that bitch about how California is all “liberal” while ignoring the conservative North Cali and all of the Neo-Con enclaves and Nazis in between.
Sure the Florida GOP are pretty much Nazi-lite, but there’s a shitload of Florida citizens who are not them and completely disagree with them and are doing what they can to push back against them.
It’s Disney’s fault.
edit: honestly, do I really need to put a “/s” at the end of that?
Poe’s Law, fam.
Mate, there are a lot of people who unironically think that.
In regard to insurance premiums due to chronic weather disasters?
Oh, right.
Florida.
It’s depressing…
How?
Disney is stealing the sand from the beaches to build an ocean in Disney
/s
These hurricanes are not imaginary.
/s
Have you tried a nuclear bomb or windmills to stop them?
also /s
Sell their homes to who? Is this like a NFT, always a bigger fool, kind of thing?
Republicans who want to jerk off to DeSantis and let some racial slurs fly without social opprobrium.
That’s who has been moving there since 2020 or so.
Some people see Florida as America’s floppy, deformed penis. Others see it more as a nauseating dookie emerging from the south. Scientists are still studying the area to find the causes of the mass psychosis, but urge all healthy adults to avoid the region and its inhabitants.
Nah just spin it up into a bunch of naked credit default obligations and mix it in with the A and AA tranches, what could go wrong?
Everything has a buyer at some price. These people will just have to sell at a loss, probably.
To landlords, who will charge arbitrarily high rent, secure in the knowledge that they aren’t in a free market due to inelasticity of demand (people can’t do without shelter) and supply (there are finite places to live). That will let them pay the insurance premiums homeowners can’t afford.
Premiums they will then offload onto renters keeping their margins.
Landlords are not immune from the market. It’s not truly inelastic in that people have a choice of where to live. Climate change will eventually suppress demand and thus prices for many parts of Florida.
Smart Florida money is buying land in northern Maine to move the orange groves to.
I keep trying to convince s few buddies we should pool our money together and get into RVs. Have a lot with RVs for rent. Move them from lot to lot based on needs. Park them outside business that don’t pay well but have a lot of workers.
I’ve heard worse business proposals, for sure. But be careful about identifying as a landlord (even a prospective one) in a place like this!
Not actually going to own land and I am certainly not a lord. I am thinking more like I own RVs, rent them, and work with my renters to find provide parking and utilities.
Landlords aren’t defined by literally owning land or literally being lords. If you own living space you rent out, you’re a landlord, even if your apartments are mobile (including both RVs and houseboats).
But listen, I support you and your choices. This is not me being critical. We’re just having this conversation in a space where it’s much more in vogue to hate anyone who owns living space they rent out.
Fucking Aquaman?
