FLORIDA – The rising cost of home insurance has prompted some families to leave Florida and also led to an increase in homeowners deciding not to insure their homes, citing the high price of premiums.
“They don’t want to pay, you know, $10,15, $20,000 for homeowners insurance,” said Brightway Insurance agent Matt Carlucci Jr.
Carlucci said not having a home insurance policy is not a recommended course of action, which is only available to people who have paid off the existing mortgage on their home.
“Everybody is, you know, getting renewals and very expensive,” Carlucci said. “And they’re wondering how they’re going to afford it.”
Nationally, 12% of homeowners don’t have insurance, according to the Insurance Information Institute.
By contrast, 15 to 20 percent of Florida homeowners don’t have insurance, meaning they are willing to take the risk against hurricanes and other hazards.
“We’re seeing a growing trend, particularly among retirees here in Florida,” said Mark Friedlander, a spokesman for the Insurance Information Institute.
But Friedlander said that’s not the only trend making headlines.
He added that real estate agents are running into roadblocks in selling homes because of high property insurance premiums. He said realtors are running into problems when it comes to closing on home transactions, saying the cost of insurance and the home is putting the price tag out of reach for some.
“It’s throwing those equations out of whack, and in some cases to the point where the homeowner no longer qualifies for the mortgage because the insurance costs so much. So it’s clearly having a detrimental effect,” Friedlander said.
Friedlander said Florida’s property insurance hikes are also starting to affect the state’s popularity, with some Floridians leaving the state altogether because they can’t afford to live here.
“We’re starting to see some reports from the real estate industry showing that homeowners are leaving the state of Florida, and it’s also having an impact on homeowners who are interested in moving to Florida,” Friedlander said.
Realtors said some retirees are choosing to retire in neighbouring states such as Georgia, Alabama and Mississippi, citing price as the main reason.
However, insurance experts say recent efforts by state lawmakers to reduce premiums are showing signs that insurance premiums could come down at some point in the future.
