Florida’s Insurance Woes

Well, here it is on a beautiful Monday morning. Now I will admit I’ve once again thrown on a light shirt and my favorite Tulane University sweatshirt. Yes, I’ll be the first to admit that after over 36 years here I’ve come to enjoy our warmer temperatures. I will admit I’m originally from a very chilly climate up north where 50 degrees would feel like spring! That said, I am very appreciative of the balmy 68-degree temperatures at noon and the soon to be 70s as I sit and type this.

I do appreciate everything we all have here, especially the wonderful weather and of course all of you. There are some things that do bother me. One of the most pressing things I would hope our governor, who has now returned to the state, will now engage once more on Floridian issues. However, taking money out of a budget surplus is merely a band-aid on an arterial bleed. We must deal with the core issues before us.

The first of these deals with the insurance debacle we are facing with the notices being sent that advise homeowners they need to look elsewhere for their homeowner’s insurance needs, if they can still find coverage they can afford.

Those who have been lucky enough to not have been told to look elsewhere for coverage might be best to sit down before they read the renewal notices with the costs for 2024. Those costs are going up for this next year for many of you. Yes, I understand you may not have had a claim this last year or for a number of years, but you’ll soon see that doesn’t matter. Should you have been one of the unlucky ones, don’t hesitate to reach out to your agent for any assistance they might provide.

These draconian increases for many of our elderly may force them from their homes, or in the case of new home buyers it could affect whether or not they will be able to afford that home they had been considering. This is not a Marco, Naples, or Collier County issue, it is state-wide, and deserves a solution and not a band-aid.

To be fair, one of the recent data sheets I’ve seen shows in 2021 the number of active litigation cases had topped well over 107,000 active lawsuits here in Florida. There has been an explosion of litigation from policy owners that feel they have been poorly serviced by their insurance provider and or contractors - don’t be a victim of unscrupulous individuals and do your homework or reach out for help before you become a victim.

In the end it is the homeowner that suffers, as their rates have risen. In 2020 an average Florida homeowner paid $2,020/year, in 2021 that rose to $3,189, in 2022 that spiked to $4,200 and in 2023 we saw an average of $6,000 a year. Some who have spoken to me have seen considerable increases projected. Others looking to insure are facing notices that their company will not write a policy if they don’t put a new roof on to replace the present one which might be only 12 to 14 years of age.

For a young couple looking to purchase, the issue of insurance can be a stumbling block in their dream of acquiring their first home. These escalating insurance costs may well torpedo their dreams as well as the hopes of retirees on a fixed income. Simply put no insurance, no mortgage, no home.

Those in charge can no longer afford to bury their heads in the sand. This is an escalating problem in our state, as well as others. It is time to act and not ignore this issue.

If the strong economy within Florida is to continue, something must be done in regard to the ever-growing issue with the insurance problems. Those issues eventually will trickle down to the consumer who ultimately is hurt, whether they presently own a home with a mortgage or a potential new home buyer who is seeing that dream of home ownership evaporate before them.

The housing industry is an important factor in our economy. Whether it involves new homes or older homes being purchased, there is an impact on your neighbor who may provide the services supplied if it grinds to a halt. Flooring materials, floor installers, roofers, appliances are all part of the supply chain that employs those workers who earn a wage providing those services. If they don’t work installing or providing those products, they can’t come out and go to your restaurants or purchase your products. It becomes a ripple effect that impacts us all.

I can’t tell you I have the answers, because I don’t, but our governor and legislators along with others must put their collective minds together. It would also seem that the leaders of other states with similar exposures for catastrophic events, as well as national leaders, should be involved in a collective effort to solve these issues.