- Joined
- Jul 14, 2020
- Messages
- 1,487
I bet 95% of the people who are surprised aren't FROM FLORIDA. I bet they are from the northeastern states....
USAA homeowners insurance in Florida
- Thread starter NormanBuntz
- Start date
I bet 95% of the people who are surprised aren't FROM FLORIDA. I bet they are from the northeastern states....
Approximately 20 years ago USAA threw a tantrum and decided to not renew polices in Florida due to some (then) new state rules. They would allow one policy per member in the state only. I had 4 rental units in a duplex (units A and B) and two small houses (units C and D) on one lot that were insured with them.
They told me they would be renewing Unit D only. I told them I preferred insurance on another unit. They said it was their choice and it would be D only. I informed the agent it was my choice and they were fired. Long silence. I don't think the agent expected that.
They told me they would be renewing Unit D only. I told them I preferred insurance on another unit. They said it was their choice and it would be D only. I informed the agent it was my choice and they were fired. Long silence. I don't think the agent expected that.
What about The Villages?
Wife and I spent a day there last autumn visiting. Very surreal place.
Back on topic................................
I feel for people who already live in Florida but let the insurance issue be known to anyone considering moving there.
I feel like we missed a bullet by not going there.
7 previous "A" rated Insurance companies went bankrupt in Florida since 2021 and I think roughly 20% or so stopped doing business in the state. People moving there should have to sign that they have been given notice about the problem there.
Florida is no longer "cheap" or cost effective to many, still maybe to northeasterners but nothing like the low cost reputation that still is in the minds of those up north.
Property taxes lower? Sure but not like they were. HOA and CCD fees make up for any lower property taxes. Then depending on what area of Florida, you may find your self paying insurance costs the same as all taxes, HOA and CCD fees combined.
Nothing wrong with the above as long as people realize they are responsible for their own decisions to move there. Do your homework and consider what you are willing to pay in the future for homeowners insurance if you are going to have it.
PS. I love the state of Florida and not knocking it. Its just the cost of living in a hurricane prone state is no ones fault/ except those who choose to move there and then complain.
I feel like we missed a bullet by not going there.
7 previous "A" rated Insurance companies went bankrupt in Florida since 2021 and I think roughly 20% or so stopped doing business in the state. People moving there should have to sign that they have been given notice about the problem there.
Florida is no longer "cheap" or cost effective to many, still maybe to northeasterners but nothing like the low cost reputation that still is in the minds of those up north.
Property taxes lower? Sure but not like they were. HOA and CCD fees make up for any lower property taxes. Then depending on what area of Florida, you may find your self paying insurance costs the same as all taxes, HOA and CCD fees combined.
Nothing wrong with the above as long as people realize they are responsible for their own decisions to move there. Do your homework and consider what you are willing to pay in the future for homeowners insurance if you are going to have it.
PS. I love the state of Florida and not knocking it. Its just the cost of living in a hurricane prone state is no ones fault/ except those who choose to move there and then complain.
Ok, instead of starting a new thread I am back to this topic because Im trying to wrap my head around the price increases in homeowners insurance.
I dont understand why? Im on the Carolina Coast. What has changed in the last 100 years? Nothing, yet I wonder with anticipation what my homeowners will come in at next year. Why? Companies asking for 70% increase in our county, 42% average across the state, will never happen but why the ask? I guess cause they can?
SO anyway, ( I JUST READ) the industry just agreed to an average 8% increase for 2025 with the state of North Carolina insurance commission. They wanted an average of 42% increase. So I suspect my insurance may go up as much as 12% near the shore. We will see but I am supposed to be happy it's not 70%? with no justification at all.
I get the problem in Florida now, I just read up on it, Florida has 9% for the claims yet 79% of all homeowner lawsuits with attorneys getting 71% of the money. THIS IS THE ISSUE.
So I get annoyed, Climate change blamed on everything, intensity of storms blamed on everything. Hogwash, the public out to lunch and lost the ability (if they ever had it) to critically think. Just look up the facts, there is literally no change in the storms hitting Florida for the last 100 years.
Same goes for the east coast but all we hear are climate change and rising water levels, well guess what? That has NOTHING TO DO WITH THE COST OF INSURANCE Rising water in your home is not covered by homeowners insurance! That is separate flood insurance if you live on the coast or elect to get it inland.
Source - https://www.moneygeek.com/insurance/homeowners/why-is-homeowners-insurance-so-expensive-in-florida/
I dont understand why? Im on the Carolina Coast. What has changed in the last 100 years? Nothing, yet I wonder with anticipation what my homeowners will come in at next year. Why? Companies asking for 70% increase in our county, 42% average across the state, will never happen but why the ask? I guess cause they can?
SO anyway, ( I JUST READ) the industry just agreed to an average 8% increase for 2025 with the state of North Carolina insurance commission. They wanted an average of 42% increase. So I suspect my insurance may go up as much as 12% near the shore. We will see but I am supposed to be happy it's not 70%? with no justification at all.
I get the problem in Florida now, I just read up on it, Florida has 9% for the claims yet 79% of all homeowner lawsuits with attorneys getting 71% of the money. THIS IS THE ISSUE.
So I get annoyed, Climate change blamed on everything, intensity of storms blamed on everything. Hogwash, the public out to lunch and lost the ability (if they ever had it) to critically think. Just look up the facts, there is literally no change in the storms hitting Florida for the last 100 years.
Same goes for the east coast but all we hear are climate change and rising water levels, well guess what? That has NOTHING TO DO WITH THE COST OF INSURANCE Rising water in your home is not covered by homeowners insurance! That is separate flood insurance if you live on the coast or elect to get it inland.
Source - https://www.moneygeek.com/insurance/homeowners/why-is-homeowners-insurance-so-expensive-in-florida/
As populations increase along the coast so does the exposure to the number of claims. You then have the cost of the claims being that materials and labor are significantly more expensive today compared to 10 yrs ago.
You then have to consider the potential for stronger and more frequent storms. As you know it's not just flooding but wind damage.
https://science.nasa.gov/earth/climate-change/a-force-of-nature-hurricanes-in-a-changing-climate/
I know for a fact that the insurance industry has been concerned about storm intensity/frequency for around the better part of a decade but all of the above is baked into the premium increases so you can't blame it all on one thing. From what I've been told by insiders the concerns related to climate change related events account for around 20-25% of the premium increase.
One thing with USAA is to double check your distance to fire service. They implemented a new mapping service and tried to pull one over on my mother a couple of years ago. She had to get the NC Insurance Commissioner involved.
Last edited:
What I am saying is the factual data on East Coast storms has not really changed in the last hundred years.
It just seems like a convenient excuse, climate change yada yada. Yet we still have the same amount of storms and depending on what decade that had of different intensities some intense cities were worse in the 1940s.
So, what is replaced in a house where a storm occurs?
You don’t have to rebuild the house, so really the only thing there is in most cases are roofs and siding. It’s not like California where the house is burning down. It’s just a structure whose roof and siding is getting possibly damaged.
As far as the population increasing along the coast that doesn’t hold water either. Because you have the same insurance companies collecting per capita more rates to cover those additional homes.
As far as inflation that just seems like another convenient excuse because homebuilding as far as inflation keeps pace with everything else and yet insurance premiums are going much much higher than the rate of inflation.
Hope this makes sense because I am doing this all on my phone and I can’t believe it
We had a post Covid spike of construction cost yet in six years that cost has gone up 20 to 25% over 3 years so how is it that a home insurance company raises rates 50 to 100% in one year alone?
I don’t know, but I do know it has nothing to do with climate change, houses built on the shoreline because they’re collecting additional premiums for those houses.
So you can insure 10 houses for such such a cost or 1000 you’re collecting 990 more premiums. The cost to build a house has not increased all that much compared to the cost of purchasing a home . One must keep in mind we cannot use property value because the land is there.
Just a friendly conversation and now I gotta go get some stuff done around the house lol
Source https://www.bls.gov/blog/2021/a-look-at-the-price-of-construction.htm
Last edited:
The guy on TV says to ignore the inflation.
Best to get the heck out of Florida before it’s too late.
It's a gut rehab when the roof disappears because the rain soaks the interior. With an evacuation it could be days before homeowners get back to their home and get temporary roof up. That's added time for mold growth.What I am saying is the factual data on East Coast storms has not really changed in the last hundred years.
It just seems like a convenient excuse, climate change yada yada. Yet we still have the same amount of storms and depending on what decade that had of different intensities some intense cities were worse in the 1940s.
So, what is replaced in a house where a storm occurs?
You don’t have to rebuild the house, so really the only thing there is in most cases are roofs and siding. It’s not like California where the house is burning down. It’s just a structure whose roof and siding is getting possibly damaged.
As far as the population increasing along the coast that doesn’t hold water either. Because you have the same insurance companies collecting per capita more rates to cover those additional homes.
As far as inflation that just seems like another convenient excuse because homebuilding as far as inflation keeps pace with everything else and yet insurance premiums are going much much higher than the rate of inflation.
Hope this makes sense because I am doing this all on my phone and I can’t believe it
We had a post Covid spike of construction cost yet in six years that cost has gone up 20 to 25% over 3 years so how is it that a home insurance company raises rates 50 to 100% in one year alone?
I don’t know, but I do know it has nothing to do with climate change, houses built on the shoreline because they’re collecting additional premiums for those houses.
So you can insure 10 houses for such such a cost or 1000 you’re collecting 990 more premiums. The cost to build a house has not increased all that much compared to the cost of purchasing a home . One must keep in mind we cannot use property value because the land is there.
Just a friendly conversation and now I gotta go get some stuff done around the house lol
View attachment 240884
Source https://www.bls.gov/blog/2021/a-look-at-the-price-of-construction.htm
This is kind of what happened to our house in Charleston SC when Hugo came through. We didn't lose the entire roof but a large section.
Another issue is the lack of capacity to complete repairs.. Homes can sit for weeks before work gets started. That's more time for mold growth.
Does code require hurricane ties on roofs in coastal zones? Hurricane windows?
Last edited:
Similar threads
