WEST PALM — Home insurance rates nationwide have jumped 19% in the past five years, according to the insurance website, but people in extreme weather-prone states like Florida are seeing much larger increases.
Gregg Weiss is one of those people. While he knows that living in Florida means the possibility of a hurricane, he was shocked to see the premium for his home insurance double. “Our windstorm insurance went from $10,000 a year to $20,000 when it came up for renewal,” says Weiss.
Other homeowners pay even more. In the past five years, average home insurance premiums in the Sunshine State have tripled, with no relief in sight.
People with mortgages have to have insurance. So Weiss, who is also the mayor of Palm Beach County, decided to do what many of his constituents are doing. He paid off his mortgage and dropped his insurance altogether. “I mean, when you think about it, $20,000 a year, we’ve never had a claim,” he said.
It’s not just Florida. Homeowners in states across the country are seeing insurance rates rise. California and other wildfire-prone states are also seeing steep increases, with rates quadrupling in some areas. Some insurance companies are dropping homeowners altogether.
“Unless insurance companies are financially successful in these markets, they’re going to pull out,” said Oscar Seikaly, CEO of NSI Insurance Group.
He said he’d never seen a market like this in his 35 years in the insurance business. According to Seikaly, higher rebuilding costs and more frequent extreme weather events are likely to exacerbate the situation.
