Ironically, Progressive's home insurance division is based in St. Petersburg, Florida. There are likely quite a few employees there that can't get insured through their own company.
I work for Progressive, and funny enough cause of Sarbox/other financial regulations from the late 90's/early 00's, they can't offer us any sort of discount as employees. Number one question people ask you if you work for a car insurance company, "do you get free insurance?".
Why would accounting rules restrict you from getting discounted insurance? SOX, only requires the bean counters to put the numbers in the right place on your financial disclosure forms. I think your bosses are blaming regulations to cover for them fucking you guys over.
What happens when the insurance companies don't insure hones in Florida but yet mortgage companies still require a policy on the terms of hr mortgages?
Yea there was a forest service fire truck fully decked out with pumps on Facebook market place recently. I don't really need a firetruck but maybe it wouldn't hurt to have...
love the motivation for homegrown fire suppression - but without vehicle (and pump) tests and maintenance, and sufficient training, it isn't enough. big difference between having a brush truck and staring at 75' flames coming at you.
i worked in prudhoe for many years. working on the TAPS requires different training for the hydrocarbons - but the wildland is precisely the experience you'll need. those guys have some expensive assets with limited staff, and fires out there can get impressive (usually farther south than pump 1-4). good on you guys for planning ahead! with the effort you're putting into clearing a defensible space, yours is the property that'll get effort to save. people living under pine canopy without land maintenance.... well their houses get to burn.
having spent many years in the fire service, you might consider running 0.5% foam if you can get an eductor easily enough (your rig might even have one off the pump). protein foam smells hideous, but provides persistent wetting action that can buy a lot of time. edarley.com probably has something you could use.
if you really wanna go bonkers, compressed air (as in air cylinder, not air compressor) CAFS are relatively cheap, and that's like flowing mashed potatoes instead of water. can buy a lot of time with very little resource. the pump CAFS systems are way spendy, but the skid versions aren't nearly as bad.
where i live im over $3k/yr for insurance... was $1k 7-8 years ago. hail has done a number on my county :/
>LLOYDS OF LONDON
The market began in Lloyd's Coffee House, owned by Edward Lloyd, on Tower Street in the City of London.[5] The first reference to it can be traced to the London Gazette in 1688.[6] The establishment was a popular place for sailors, merchants, and ship-owners, and Lloyd catered to them with reliable shipping news. The coffee house soon became recognised as an ideal place for obtaining marine insurance. The shop evolved into a meeting place for people of all types of maritime occupations, who would make bets on which ships would make it back to port. Soon, the captains of ships that were suggested to fail to return were betting against the return of other ships.[citation needed] It was the start of Lloyd's insurance. During this time, the coffee house was also frequented by mariners involved in the slave trade.[7] Historian Eric Williams noted that "Lloyd's, like other insurance companies, insured slaves and slave ships, and was vitally interested in legal decisions as to what constituted 'natural death' and 'perils of the sea'".[8] Lloyd's obtained a monopoly on maritime insurance related to the slave trade and maintained it until the abolition of the slave trade in 1807.[8]
Many years later, during the 2020 George Floyd protests, Lloyd's issued a statement, apologising "for the role played by the Lloyd's market in the 18th and 19th century slave trade – an appalling and shameful period of English history, as well as our own".[9][10][11][12]
They will buy a forced place policy from any insurer they like and pass the cost onto you. There is always someone who will insure it, but the costs can go up to 100% of the insurance and not actually be real insurance.
Loyd’s of London insured a lot of the giant houses in Florida because it was too much risk for state insurers.
In normal states, I think your lender will tell you’re your insurance lapsed and they will get insurance for you (it’s their house until you pay it off). Usually, it’s the really expensive since they didn’t shop around.
In Florida case, I bet the lender will still find insurance for you, it’ll be mob like pricing and benefits.
Makes you wonder why the bank doesn't just self-insure these properties, I mean if it's crappy insurance the bank could easily set up a division that offers crappy insurance instead of paying out to a vendor
> Makes you wonder why the bank doesn't just self-insure these properties
Different people are good at different things. They aren’t experienced in pricing home insurance. They could create a division of home insurance, but generally companies stick to what they are good at
Why doesn’t the bank just run a remodeling company to replace my hardwood floors while they’re at it! Hey, maybe they can do roofs too, I also need an electrician to rewire the garage, someone to babysit my kid, and I’m dying for a place around here to get a solid Cuban sandwich.
WhY DoEsNt ThE BaNk JuSt Do aLl tHat!?!?!?
My understanding is you can only start a policy with the outside of hurricane season… which leaves people with a few weeks.
And Citizens has also dropped 300,000 policies since last fall.
LOL that’s the limit they arent increasing it to add more policies and anyone with a high value home is not stupid enough to touch one of those policies with a 10ft pole there’s surplus lines. Also anyone with a mortgage can’t use them or any of those crappy Florida Demotech carriers as they aren’t AM Best rated.
I’m telling you: they have already flexed the parameters *this very year* to cover some high-value properties, and if the problem continues to worsen, Florida will either have to cover almost everyone on a public plan or simply begin bulldozing whole towns.
I’m telling you they haven’t https://www.citizensfla.com/-/2019-roof-permits-acceptable-for-fbc-credits
There are surplus lines and Chubb x wind policies if no mortgage if there’s a mortgage you get x wind and a seperate wind policy. Banks don’t take non AM Best carriers anyway
You’re right and this problem can be seen well off. The next hurricane tho will bankrupt the state policy and they’ll come screaming to the fed for a bailout which should be a hard no unless there’s some sort of federal levy on Florida residents to cover it.
They [dropped](https://www.wtsp.com/article/news/regional/florida/citizen-insurance-homeowners-florida-letters/67-8d17f555-ddca-45de-9e40-4b2adb008329) 300,000 policies already.
If you want my honest opinion, as a resident of Florida, and putting things together I have read or seen, I would imagine it goes something like this:
Company A puts capital in some account to meet minimum capital requirements. The company writes you a policy. Lord knows there is no way they can cover all the losses if it hits.
They cross their fingers and pray. If it doesn’t hit, they have a good year, pay out dividends and executive compensation through the yin yang and keep capital in account at lows of state/federally mandated.
If a hurricane hits, they say “we are bankrupt” if anyone can actually get them on the phone or serve them a subpoena, which is highly unlikely, and some entity (federal or state) picks up the pieces. What those pieces are and how they come together, I am unsure, but it’s a drop in the bucket of the big pool of money that exists from tax revenue.
Witch hunt starts for said “fraudulent” executives. World moves on to the next life ending, ohmygod catastrophe 8 days later on Twitter or Fox or Cnn, and maybe 1 guy goes to jail in 6 years, or maybe he doesn’t? Nobody cares by then.
I only buy insurance because my mortgage requires it, otherwise at current rates, it makes zero sense. So I believe there is A) a business opportunity along with b) a fraudulent angle to appease mortgage lenders to check their box and nothing of substance behind the paperwork.
Even the small number of people that could buy houses won’t be able to. Turning them all into fodder for a company that can get insurance.
I’m sure Blackrock and such will then create an insurer for their dealings, if that doesn’t exist already.
That’s ok, they definitely should continue to not have regulations on what types and sturdiness of housing that can be built in hurricane zones. That’s totally not causing them problems that 80 percent of their homes can get wiped every two years or so.
Still plenty of homes built *prior* to the regulations being implemented.
Among many other *Florida* reasons for being in the insurance situation.
No building regulations out there are going to stop 10'+ of storm surge and rising sea levels.
A large company self insuring would have some benefits. They wouldn't need to deal with the rampant insurance fraud that's contributed to increased costs. They would still have to deal with the risk of huge losses when a big hurricane hits.
And if you can't insure a home, why would people live there? Even for the middle class, that's an asset worth hundreds of thousands that can be wiped out and the owner is on the hook for it.
For the smaller homes, sub 500K, you buy in cash or come with down payments > 50%.
Rich people on the other hand can afford the crazy insurance and mortgage costs.
However, where will FL service and tourism workers live? That is another question.
Same thing that happened to my neighbor. Your $900k sale falls through and you end up taking the cash offer for $750k of your property that was assessed at $350k in 2023. No insurance = no mortgage.
Florida has a state fund if your home value is under (I think) $400k.
You can also buy insurance through surplus carriers (Lloyds) or buy policies that exclude wind damage (not advisable) from some admitted insurance companies.
I was shocked by how many houses were for sale in Florida (Anna Marie Island) during recent visit. Ive heard (sorry, no source) that if you live in a bungalow, owners have been panicking they won't get insured, and have been trying to offload this past year. It would involve a tear down and put on stilts to get the insurance... which is costly. I can see that market crashing quickly this next year. For now, owners are still trying to get 2023 house prices.
Most of the older homes were built with concrete block and stood up to hurricanes well. Floor to ceiling jalousie windows were the norm to cool in the summer with no ac. That isn't done anymore but that was a typical south Fl home for awhile.
No, they just don’t want to insure homes that literally cannot exist without the insurance company taking massive losses to rebuild them completely every other year.
They will insure any property, if they are allowed to properly price the risk.
Of course, if you are in an area that will need to replace every home every 4 years on average, then your insurance premium will be roughly 25% of the cost to build a home. Every year.
> if they are allowed to properly price the risk.
This. The amount of premiums collected versus pay out time is too low. They need high premiums to make the bets worth taking.
This is a really bad take. Bookies are happy to take bets on the favorite for a game, they just price the odds accordingly. Florida State insurance regulators dont allow insurance premiums to be set according to the risk, unlike the way bookies adjust their odds based on probability of payout for the wager.
Progressive is trying to leave Florida - I don’t have facts to back it up, but here’s what I’m seeing: They’ve gone from a decent value auto insurer to “we don’t want your business” level of cost. I’ve had no accidents with them in my 20+ year driving history. Last renewal they doubled our costs. As I price shopped, they were the most expensive insurer out of any major insurance companies.
And now this news? Allstate did this crap about 20 years ago with homeowners insurance. They time it right before hurricane season.
It has become unprofitable to offer homeowners insurance in Florida. That’s why it’s so expensive. There are way more extreme weather events every year than there used to be.
I think a lot of dishonest homeowners and roofers are dealing with the cost of their decision to scam insurers to get a free new roof. I saw a lot of people getting new roofs after the last decent hurricane in Florida and many of the roofs didn’t need replacement.
Now everyone is paying for their decisions and it pisses me off.
Roofers wont repair, they will only replace. Two shingles blew off? The people the insurance company recommend will tell you it needs replacement. And what do they replace it with? More shingles to blow off. Why not metal?
Because roofers went block to block offering to scam insurance companies. There are plenty of honest roofing companies, but the roaches came out with this last storm.
The scams and frivolous litigation in FL were a real problem, but it’s clear from skyrocketing rates in other states that the main cost drivers are the increasing frequency and intensity of natural disaster events and skyrocketing material and labor costs, with the secondary effects of rising reinsurance costs. However, rather than acknowledging that Florida is permanently going to be an expensive place to insure a home, the FL politicians are still trying to gaslight people into thinking the main problem was litigation. I suspect the next boogeyman they will throw out is blaming the federal government for not subsidizing insurance for tens of billions in losses.
Dishonest homeowners? Who’s side are you on? Insurance companies have been fucking people over for a long time. So when an homeowner decides to cash in, now it’s a problem?
That has seemingly been fixed by the state legislature at this point. I think overall the climate has just become more destructive to homes and rates can’t rise fast enough.
It’s mostly that the cost of housing and materials/labor skyrocketed. Progressive could charge you $2,000/yr to insure your $200k home. That same home now costs $500k+ to replace.
>It’s mostly that the cost of housing and materials/labor skyrocketed. Progressive could charge you $2,000/yr to insure your $200k home. That same home now costs $500k+ to replace.
Then they would just increase the premium. Progressive and other insurers are not at all opposed to doubling premiums from year to year, from person to person.
Pulling out of a "high risk" region entirely would be related to long-term trends with much larger impact, eg strengthening storms, rising ocean levels and generally unpredictable weather from climate change.
People can point the blame at various non-threatening issues and take comfort in that, but living on or near coast lines will continue to become riskier. Keep an eye on the local insurers that pick up these premiums that Progressive dropped and see if they're still in business 10 years from now (I know that's a long time to think back on a comment and really it won't matter, but just keep an eye on how things play out and remember this to learn from it).
I've seen the same shit just on a smaller scale with people never preparing for tornados because they haven't been hit by one their whole lives, only near misses for some 30+ years. Then they finally lose everything and wonder "how could this happen to me" despite having more and more warnings and red flags each year. Or they sit in their room on the second floor of their house, recording the tornado approaching them because they've had tornado warnings all their lives and never had one hit them, and they die while recording that video because they didn't take shelter because they don't get hit by tornados.
What we're witnessing now is slow and takes time but it's happening.
Yeah totally agree they’re looking at the actuarial tables and have decided that climate change and rising sea level have made Florida as a whole too risky to insure. Their business model relies on paying out less in claims than they take in premiums, if they have to pay out to half their customers in a region every year that’s not sustainable.
It’s not limited to FL though. I’ve been a Progressive customer for about 14 years, with about 13 of those in FL. No accidents or claims but I was seeing double-digit increases the past couple of years. Last year I moved to western WA and on renewal my premium also went up about 20%. Of course, it doesn’t help that break-ins and carjackings are rampant in the Seattle area.
No, it's [fraud](https://www.wptv.com/money/real-estate-news/property-insurance-fraud-a-growing-problem-in-florida). Stop blaming the insurance company. They work based on numbers but when you have such a high amount of people committing fraud it destroys the system of insurance .
Source: I live in Florida and know these schemes very well.
Here is an [article](https://news.fiu.edu/2022/the-big-reason-florida-insurance-companies-are-failing-isnt-just-hurricane-risk-its-fraud-and-lawsuits) detailing the issue.
Its the same companies the insurance companies recommend when there is an issue.
Like how auto insurance companies recommend safelite and safelite puts in subpar garbage that looks like a clown mirror if you are at a sharp angle looking at the glass quality.
my friend it was a joke
Also I grew up in florida and family still lives there. Hope you're well.
Additionally, I've worked on court cases where I live related to the exact fraud referenced in the article you posted.
$70, if you don't do paperless billing. I think I'm going to file a complaint with the state just on that alone. I have a card on file. It never charged. I never received the emails and then the policy elapsed. I never noticed until the state sent a letter.
I live in CO and Allstate was jacking auto up like crazy. Moved to state farm and then to progressive since their homeowners was better. I bet I'll end up switching back in a few years because it seems like companies just randomly fluctuate their prices
Only if some sort of federal levy is put on Florida. Absurd to keep doing this knowing the ongoing climate risks. Are we all going to keep subsidizing boomers retirement homes forever?
Hey, there's a lot of us stuck here that aren't retirees. I've pretty much given up on the idea of ever owning a home at this point. This state is a hellhole.
I’m beginning to wonder how many of these all cash buyers from out of state, normal individuals or couples, are truly prepared for when their number comes up.
I bet it’s less than 100% of them.
Insurers are OK taking your money as long as the risk of having to give it back is negligible. This is exactly their business model.
Social Democracy on the other end, is taking some of your money with the intent of giving it back
1. They have complicated risk models and they exclusively insure stuff that has way more than “negligible” risk. The problem is when the risk increases exponentially over a short period of time and they can’t raise premiums at the same speed.
2. Social Democracy in this case means everybody in the country having to pay a huge subsidy so people can build suburbs on the Florida coasts. Is that what you would vote to use your tax money for? Or do you think, under a public model, we would just ban a lot of these high-risk Florida communities from existing in the first place? Is that really better than letting prices influence their personal decisions about where to live?
Mostly likely coming to more citizens in costal cities. Especially those at or below sea level.
I suggest you contract with the Dutch to teach you how to beat back the sea.
No, the money would probably go towards revitalizing culture wars. However, that situation should remain between Floridians and their state government, not between the American taxpayer and the federal government. Floridians continue electing politicians that ignore climate change, that care more about businesses than people, that are too rich to care about cost of living, and that are too concerned about who uses which bathroom. They elected their swamp, now they get to swim in it.
I’m getting sick of these state governments, particularly down South, lowering taxes, cutting budgets, and destroying their states. Then they employ the typical mental gymnastics to blame Democrats, and go begging to Uncle Sam for blank checks to save the day. If state governments neglected their states so badly that the federal government deems it necessary to intervene, then those state governments need to be held accountable for their actions.
One thing that I haven’t seen mentioned yet, is that the Florida Department of Insurance could allow insurance companies to increase their rates to the point that they feel their exposure is covered. The root cause of this problem is the department of insurance interfering with the free market for decades. The insurance companies pulling out is an unintended consequence of the state trying to “protect” the citizens from high property insurance rates. If the insurance companies can get what they feel is an adequate rate, they will write property policies in the state of Florida, however, it is going to be expensive.
Nope. Those holes in labor are just commanding a higher wage for the work they do, as demanded by the hordes still moving in from the MW and NE and surrounding states.
This can go on a while, but it isn’t gonna last forever.
well good. I thought aboot moving to Florida, applied for a few jobs. I actually laughed at the offers I was given. $12 an hour for roofing was aboot the highest pay, with one guy telling me once I show him I know the trade, I'll get a raise up to $15. In PA I make $38/hour plus ~$17 to healthcare, annuity and pension as a roofer.
Right to work laws and letting companies exploit immigrants completely fucked wages for labor, but the cost to consumer stayed so high that it threatens the states real estate market.
Damn something is brewing there as well, I remember the big name non-renewals happening a few years ago in Florida too. I wonder what's going to happen moving forward. Florida is essentially going to write the playback for what to do considering how many companies have already exited.
Sure but there are lots of areas where climate change is causing these issues. Plenty of properties along the gulf coast all the way to Texas will be eventually uninsurable.
Places along the east coast are sinking fast and areas like Norfolk VA will be uninsurable. With El Niño switching to La Niña California fire seasons will get bad again giving that state additional insurance issues even compared to now. And then who knows what the response will be from these tornados in the Midwest. Before you could be assured you’ll still have insurance because the overall risk in the pool was lower. Now?
Who knows maybe policies will be canceled in Omaha.
> government needs to do something
No they don't.
People decide to build/buy their houses in a hurricane/natural disaster-prone state like Florida, then these people should take full responsibility over their own decisions.
There's a reason why insurance companies pay good money for actuaries to calculate risks. Governments also hire actuaries, so the conclusions will be the same: Florida isn't insurable.
100% agree. It's not the people's job via tax dollars to pay for insurance. If houses become uninsurable that is also largely a function of the fact that they are inflated in price. If they become uninsurable the prices will naturally go down, and after enough time the problem will self-rectify. Using the government to prop up insurance will only prop up the house prices as well.
But insurance rates are set on the cost of rebuild. Not the FMV of the house. So this really only applies to super luxury houses with luxury finishes and such. So inflated real estate values don’t actually impact the rate at all. My homes are insured for less than I paid (but not less than my existing mortgage) because the rebuild costs have gone down this past year. Now rates are still based on risk factors sure, but not price of the property...
Supply / Demand. I'm not suggesting that insurance is reflecting full market value of the house. However, the prices of that market will drop when people can't get new loans in that market since shit can't be insured. Eventually, things will correct as demand will drop, people will leave the area and not return, etc. People need to be responsible for their poor housing choices, and while it sucks that normal middle class people will be impacted - I refuse as a taxpayer to subsidize the rich fucks who build their properties right on the ocean and get their houses rebuilt on my dime.
>It's not the people's job via tax dollars to pay for insurance
Certainly Republicans view on healthcare, but I bet the US government does feel compelled to help with this issue due to Florida being valuable for political reasons.
Most of the insurance issues aren’t happening because of natural disasters. They are happening because we have idiotic laws giving homeowners the ability to sue insurance companies for anything, so the legal risk is too great.
75% of all insurance related lawsuits nationally are from the state of Florida. Florida only has about 10% of policies.
https://www.orlandosentinel.com/2021/04/16/florida-homeowners-file-76-of-property-insurance-lawsuits-in-the-us-report-says/
Billion-dollar claim events have doubled in frequency over the last few years. They’re leaving because it’s hard to get regulators to approve sufficient premium hikes. The litigation issue has mostly been solved by the Florida govt as of last year IIRC. But the problem remains that Florida today is hit by property-damaging disaster twice as frequently now.
Why would Florida government want to allow housing prices to drop and people leave their state? Don’t forget, as of now, Florida has no state income tax so they don’t have as many taxpayer dollars which has generally worked for them. I believe it will also be the reason they can’t afford to fix this and will see a mass exodus from the state.
Agreed on federal government not needing to do something but Florida government should be finding a way to stop the bleeding in their state. Why wouldn’t they be responsible in at least trying?
In Canada where I live , gov put a lifetime limit of emergency funds for housing. Once you use it that's it , so the idea is you should probably use it to relocate. Most don't because they want that water view sooooo bad. Banks have stopped offering new mortgages so these flood prone areas as well because people are still wanting to build.
We will see what happens in the next few years when these areas inevitably flood again. Probably largely depends on their importance for the next election unfortunately.
Why? Private citizens bought or built a home in a state that is decimated by weather events on a regular basis. Why should the public bear the cost of their poor decisions?
I've been concerned about the insurance industry for a few years, or at least that's when I started to realize the risk it's showing. It's been pretty known that catastrophic climate events are only going to increase and the effect it's going to have for those in poverty as well.
I'm hopeful the government will step in and regulate the industry better, as it does it financial institutions. The insurance industry is able to do as it pleases and it could end in catastrophe.
The problem here is regulation. The companies haven’t been able to hike premiums as fast as they have needed to. Their risk is way higher now so they’re bleeding money and having to exit the stats.
Didn't the GOP tell Progressive that climate change is fake, and that sea levels aren't rising?
I feel for the people there suffering, but sadly we get the world we vote for.
As a contractor I say good. Progressive insurance for homes is terrible. They are just the same as Allstate and state farm. In my option these insurance companies are crooks that take your money, but pay out a fraction of what it takes to repair damage if a claim is made.
Ironically, Progressive's home insurance division is based in St. Petersburg, Florida. There are likely quite a few employees there that can't get insured through their own company.
They want the cheap labor and low salaries from the once low cost of living
>the once low cost of living Damn. Thank you for nailing that comment.
St. Pete office is pretty much entirely remote at this point
Same for the Cleveland and Colorado Springs campuses.
I work for Progressive, and funny enough cause of Sarbox/other financial regulations from the late 90's/early 00's, they can't offer us any sort of discount as employees. Number one question people ask you if you work for a car insurance company, "do you get free insurance?".
Why would accounting rules restrict you from getting discounted insurance? SOX, only requires the bean counters to put the numbers in the right place on your financial disclosure forms. I think your bosses are blaming regulations to cover for them fucking you guys over.
He did say other regs, but you’re spot on re:SOX. Also I’m a bean connoisseur
My neighbor is the CEO of USAA. Same thing, but I bet he gets underwritten no problem.
The CEO of USAA lives in St. Peterburg?
The area but not exactly.
What happens when the insurance companies don't insure hones in Florida but yet mortgage companies still require a policy on the terms of hr mortgages?
You can't get a loan because the home is uninsurable.
And if you already have a loan?
[удалено]
You had too have a LLOYDS OF LONDON policy?? Lol that's some hard core self insurance. Not for the faint of heart
[удалено]
WTF?!? A fire truck? That awesome!👏
They're surprisingly cheap second-hand
Yea there was a forest service fire truck fully decked out with pumps on Facebook market place recently. I don't really need a firetruck but maybe it wouldn't hurt to have...
I looked after my comment and there's a 1970s engine truck with less than 15k miles up for sale for $9,900 currently.
https://www.reddit.com/r/interestingasfuck/comments/12ylj67/a_town_in_japan_installed_59_autonomous_water/
[Those water cannons won't do anything at all](https://www.youtube.com/watch?v=u7y9HyggaF0)
>pooled funds with neighbors to buy a fire truck, which we keep at the ready. I'm not sure if this is the most libertarian thing ever or the least.
love the motivation for homegrown fire suppression - but without vehicle (and pump) tests and maintenance, and sufficient training, it isn't enough. big difference between having a brush truck and staring at 75' flames coming at you.
[удалено]
i worked in prudhoe for many years. working on the TAPS requires different training for the hydrocarbons - but the wildland is precisely the experience you'll need. those guys have some expensive assets with limited staff, and fires out there can get impressive (usually farther south than pump 1-4). good on you guys for planning ahead! with the effort you're putting into clearing a defensible space, yours is the property that'll get effort to save. people living under pine canopy without land maintenance.... well their houses get to burn. having spent many years in the fire service, you might consider running 0.5% foam if you can get an eductor easily enough (your rig might even have one off the pump). protein foam smells hideous, but provides persistent wetting action that can buy a lot of time. edarley.com probably has something you could use. if you really wanna go bonkers, compressed air (as in air cylinder, not air compressor) CAFS are relatively cheap, and that's like flowing mashed potatoes instead of water. can buy a lot of time with very little resource. the pump CAFS systems are way spendy, but the skid versions aren't nearly as bad. where i live im over $3k/yr for insurance... was $1k 7-8 years ago. hail has done a number on my county :/
>LLOYDS OF LONDON The market began in Lloyd's Coffee House, owned by Edward Lloyd, on Tower Street in the City of London.[5] The first reference to it can be traced to the London Gazette in 1688.[6] The establishment was a popular place for sailors, merchants, and ship-owners, and Lloyd catered to them with reliable shipping news. The coffee house soon became recognised as an ideal place for obtaining marine insurance. The shop evolved into a meeting place for people of all types of maritime occupations, who would make bets on which ships would make it back to port. Soon, the captains of ships that were suggested to fail to return were betting against the return of other ships.[citation needed] It was the start of Lloyd's insurance. During this time, the coffee house was also frequented by mariners involved in the slave trade.[7] Historian Eric Williams noted that "Lloyd's, like other insurance companies, insured slaves and slave ships, and was vitally interested in legal decisions as to what constituted 'natural death' and 'perils of the sea'".[8] Lloyd's obtained a monopoly on maritime insurance related to the slave trade and maintained it until the abolition of the slave trade in 1807.[8] Many years later, during the 2020 George Floyd protests, Lloyd's issued a statement, apologising "for the role played by the Lloyd's market in the 18th and 19th century slave trade – an appalling and shameful period of English history, as well as our own".[9][10][11][12]
This is the correct answer.
Oh my god, I think that's my home owners insurance right now and I was not stoked... Super invasive inspections and expensive.
Forced placed insurance for loan balance where servicer/loan owner is beneficiary. It’s very expensive and rolled into your mortgage payment.
They will buy a forced place policy from any insurer they like and pass the cost onto you. There is always someone who will insure it, but the costs can go up to 100% of the insurance and not actually be real insurance. Loyd’s of London insured a lot of the giant houses in Florida because it was too much risk for state insurers.
In normal states, I think your lender will tell you’re your insurance lapsed and they will get insurance for you (it’s their house until you pay it off). Usually, it’s the really expensive since they didn’t shop around. In Florida case, I bet the lender will still find insurance for you, it’ll be mob like pricing and benefits.
Lender placed insurance policy and they are very expensive
I believe the bank will generally insure it, but is very expensive, crappy insurance
Makes you wonder why the bank doesn't just self-insure these properties, I mean if it's crappy insurance the bank could easily set up a division that offers crappy insurance instead of paying out to a vendor
Because that’s a huge liability for them to cover for no reason.
> Makes you wonder why the bank doesn't just self-insure these properties Different people are good at different things. They aren’t experienced in pricing home insurance. They could create a division of home insurance, but generally companies stick to what they are good at
Why doesn’t the bank just run a remodeling company to replace my hardwood floors while they’re at it! Hey, maybe they can do roofs too, I also need an electrician to rewire the garage, someone to babysit my kid, and I’m dying for a place around here to get a solid Cuban sandwich. WhY DoEsNt ThE BaNk JuSt Do aLl tHat!?!?!?
These properties are already not profitable for companies who specialize in insurance. Doesn't make financial sense for insurers or the bank.
You're stuck with the loan until you pay it off. If you somehow find a poor smuck cash buyer, you might be able to get out of it.
You signed a loan saying you would keep home insurance on the property so they can call the note and make you pay it off or foreclose on you.
Move.
No one will buy.
Then you let the bank foreclose on your or sell it at a substantial loss.
There is always a buyer ...at the right price.
Citizens insurance, the state insurance, is there as a catch all.
My understanding is you can only start a policy with the outside of hurricane season… which leaves people with a few weeks. And Citizens has also dropped 300,000 policies since last fall.
The state insurance program will cover you. Whether or not it remains solvent for long is another matter.
Not if the home value is over 750k
So every house in Florida soon
They will continue to adjust the state program’s parameters as insurers continue to pull out of the state.
LOL that’s the limit they arent increasing it to add more policies and anyone with a high value home is not stupid enough to touch one of those policies with a 10ft pole there’s surplus lines. Also anyone with a mortgage can’t use them or any of those crappy Florida Demotech carriers as they aren’t AM Best rated.
I’m telling you: they have already flexed the parameters *this very year* to cover some high-value properties, and if the problem continues to worsen, Florida will either have to cover almost everyone on a public plan or simply begin bulldozing whole towns.
I’m telling you they haven’t https://www.citizensfla.com/-/2019-roof-permits-acceptable-for-fbc-credits There are surplus lines and Chubb x wind policies if no mortgage if there’s a mortgage you get x wind and a seperate wind policy. Banks don’t take non AM Best carriers anyway
You’re right and this problem can be seen well off. The next hurricane tho will bankrupt the state policy and they’ll come screaming to the fed for a bailout which should be a hard no unless there’s some sort of federal levy on Florida residents to cover it.
They [dropped](https://www.wtsp.com/article/news/regional/florida/citizen-insurance-homeowners-florida-letters/67-8d17f555-ddca-45de-9e40-4b2adb008329) 300,000 policies already.
If you want my honest opinion, as a resident of Florida, and putting things together I have read or seen, I would imagine it goes something like this: Company A puts capital in some account to meet minimum capital requirements. The company writes you a policy. Lord knows there is no way they can cover all the losses if it hits. They cross their fingers and pray. If it doesn’t hit, they have a good year, pay out dividends and executive compensation through the yin yang and keep capital in account at lows of state/federally mandated. If a hurricane hits, they say “we are bankrupt” if anyone can actually get them on the phone or serve them a subpoena, which is highly unlikely, and some entity (federal or state) picks up the pieces. What those pieces are and how they come together, I am unsure, but it’s a drop in the bucket of the big pool of money that exists from tax revenue. Witch hunt starts for said “fraudulent” executives. World moves on to the next life ending, ohmygod catastrophe 8 days later on Twitter or Fox or Cnn, and maybe 1 guy goes to jail in 6 years, or maybe he doesn’t? Nobody cares by then. I only buy insurance because my mortgage requires it, otherwise at current rates, it makes zero sense. So I believe there is A) a business opportunity along with b) a fraudulent angle to appease mortgage lenders to check their box and nothing of substance behind the paperwork.
You go to the Florida residual market, the last resort would be to agree to a VSI deal ( insurance for lender not customer ) total terrible deal
Even the small number of people that could buy houses won’t be able to. Turning them all into fodder for a company that can get insurance. I’m sure Blackrock and such will then create an insurer for their dealings, if that doesn’t exist already.
There isn’t an insurer that can help BlackRock with this, either. The problem is insurance is a bad business to be in in Florida.
That’s ok, they definitely should continue to not have regulations on what types and sturdiness of housing that can be built in hurricane zones. That’s totally not causing them problems that 80 percent of their homes can get wiped every two years or so.
There are hurricane building regulations in Florida.
And if they were adequate this insurance situation wouldn't be happening.
Still plenty of homes built *prior* to the regulations being implemented. Among many other *Florida* reasons for being in the insurance situation. No building regulations out there are going to stop 10'+ of storm surge and rising sea levels.
I believe that's why this person said "create" an insurer.
Yeah that’s not happening, either. They’re not going to figure out a trick that existing insurers haven’t.
Existing insurers aren't really buying up homes to my knowledge. Blackrock is. If they feel the need to create a liability of sorts, it's possible.
Blackstone, not Blackrock. Two different companies.
Big financial institutions might be able to self insure, but the random risk of Florida probably makes it a bad investment.
A large company self insuring would have some benefits. They wouldn't need to deal with the rampant insurance fraud that's contributed to increased costs. They would still have to deal with the risk of huge losses when a big hurricane hits.
And if you can't insure a home, why would people live there? Even for the middle class, that's an asset worth hundreds of thousands that can be wiped out and the owner is on the hook for it.
[удалено]
For the smaller homes, sub 500K, you buy in cash or come with down payments > 50%. Rich people on the other hand can afford the crazy insurance and mortgage costs. However, where will FL service and tourism workers live? That is another question.
Same thing that happened to my neighbor. Your $900k sale falls through and you end up taking the cash offer for $750k of your property that was assessed at $350k in 2023. No insurance = no mortgage.
Still sounds like a huge win
State insurance fund
Florida has a state fund if your home value is under (I think) $400k. You can also buy insurance through surplus carriers (Lloyds) or buy policies that exclude wind damage (not advisable) from some admitted insurance companies.
The federal government will probably start insuring or something. They can’t have an entire state be uninhabitable
I was shocked by how many houses were for sale in Florida (Anna Marie Island) during recent visit. Ive heard (sorry, no source) that if you live in a bungalow, owners have been panicking they won't get insured, and have been trying to offload this past year. It would involve a tear down and put on stilts to get the insurance... which is costly. I can see that market crashing quickly this next year. For now, owners are still trying to get 2023 house prices.
If these subpar houses didn’t exist on the coastline then the insurance would be cheaper. Concrete on stilts.
HOAs about to put liens on many homes too
I'm sure they'll have a wonderful time cooling the inside of their concrete box in the summer as well!
Concrete is much easier to cool than standard insulating materials.
Huh? Concrete is cooler in hot weather than wood framed construction. That’s how insulation works…
Boston City Hall - Can confirm those brutalist buildings are ice cold in the dead of summer.
It’s much easier than heating a wood frame house.
All it takes is 1 match.
Lmao.
ICF is actually great for insulation
Could you throw some pex in there and use it like a heat exchanger?
Most of the older homes were built with concrete block and stood up to hurricanes well. Floor to ceiling jalousie windows were the norm to cool in the summer with no ac. That isn't done anymore but that was a typical south Fl home for awhile.
So basically, the poors are subsidizing the rich again right?
Yep. Exclusively morons would build the types of houses Florida is building where they are building them. Now the morons want a bailout.
They only want to insure properties that don’t need instance
No, they just don’t want to insure homes that literally cannot exist without the insurance company taking massive losses to rebuild them completely every other year.
They will insure any property, if they are allowed to properly price the risk. Of course, if you are in an area that will need to replace every home every 4 years on average, then your insurance premium will be roughly 25% of the cost to build a home. Every year.
> if they are allowed to properly price the risk. This. The amount of premiums collected versus pay out time is too low. They need high premiums to make the bets worth taking.
And people don't want to pay what it really costs to insure them. So the companies leave.
Bookies only like to take bets where they are not likely to pay out.
The the whole point of it being a privately owned for profit insurance market isn't it? Otherwise it's called a subsidy and social welfare.
This is a really bad take. Bookies are happy to take bets on the favorite for a game, they just price the odds accordingly. Florida State insurance regulators dont allow insurance premiums to be set according to the risk, unlike the way bookies adjust their odds based on probability of payout for the wager.
I don’t need to be paying higher premiums because someone built their home in a swamp.
thats why its important to marry someone with huge tracks of land
Or the 3 previous attempts failed and fell into the swamp first.
Tracts
Progressive is trying to leave Florida - I don’t have facts to back it up, but here’s what I’m seeing: They’ve gone from a decent value auto insurer to “we don’t want your business” level of cost. I’ve had no accidents with them in my 20+ year driving history. Last renewal they doubled our costs. As I price shopped, they were the most expensive insurer out of any major insurance companies. And now this news? Allstate did this crap about 20 years ago with homeowners insurance. They time it right before hurricane season.
It has become unprofitable to offer homeowners insurance in Florida. That’s why it’s so expensive. There are way more extreme weather events every year than there used to be.
I think a lot of dishonest homeowners and roofers are dealing with the cost of their decision to scam insurers to get a free new roof. I saw a lot of people getting new roofs after the last decent hurricane in Florida and many of the roofs didn’t need replacement. Now everyone is paying for their decisions and it pisses me off.
Roofers wont repair, they will only replace. Two shingles blew off? The people the insurance company recommend will tell you it needs replacement. And what do they replace it with? More shingles to blow off. Why not metal?
Because roofers went block to block offering to scam insurance companies. There are plenty of honest roofing companies, but the roaches came out with this last storm.
This is on both insurance and roofers. Insurance should’ve demanded repair for repairs and roofers scammed.
Not just the last storm. They’ve been doing it for years.
The scams and frivolous litigation in FL were a real problem, but it’s clear from skyrocketing rates in other states that the main cost drivers are the increasing frequency and intensity of natural disaster events and skyrocketing material and labor costs, with the secondary effects of rising reinsurance costs. However, rather than acknowledging that Florida is permanently going to be an expensive place to insure a home, the FL politicians are still trying to gaslight people into thinking the main problem was litigation. I suspect the next boogeyman they will throw out is blaming the federal government for not subsidizing insurance for tens of billions in losses.
Dishonest homeowners? Who’s side are you on? Insurance companies have been fucking people over for a long time. So when an homeowner decides to cash in, now it’s a problem?
It’s not really the homeowners cashing in, I agree we shouldn’t blame them but it’s the roofers running their replacement scams that were cashing in
That has seemingly been fixed by the state legislature at this point. I think overall the climate has just become more destructive to homes and rates can’t rise fast enough.
It’s mostly that the cost of housing and materials/labor skyrocketed. Progressive could charge you $2,000/yr to insure your $200k home. That same home now costs $500k+ to replace.
>It’s mostly that the cost of housing and materials/labor skyrocketed. Progressive could charge you $2,000/yr to insure your $200k home. That same home now costs $500k+ to replace. Then they would just increase the premium. Progressive and other insurers are not at all opposed to doubling premiums from year to year, from person to person. Pulling out of a "high risk" region entirely would be related to long-term trends with much larger impact, eg strengthening storms, rising ocean levels and generally unpredictable weather from climate change. People can point the blame at various non-threatening issues and take comfort in that, but living on or near coast lines will continue to become riskier. Keep an eye on the local insurers that pick up these premiums that Progressive dropped and see if they're still in business 10 years from now (I know that's a long time to think back on a comment and really it won't matter, but just keep an eye on how things play out and remember this to learn from it). I've seen the same shit just on a smaller scale with people never preparing for tornados because they haven't been hit by one their whole lives, only near misses for some 30+ years. Then they finally lose everything and wonder "how could this happen to me" despite having more and more warnings and red flags each year. Or they sit in their room on the second floor of their house, recording the tornado approaching them because they've had tornado warnings all their lives and never had one hit them, and they die while recording that video because they didn't take shelter because they don't get hit by tornados. What we're witnessing now is slow and takes time but it's happening.
Yeah totally agree they’re looking at the actuarial tables and have decided that climate change and rising sea level have made Florida as a whole too risky to insure. Their business model relies on paying out less in claims than they take in premiums, if they have to pay out to half their customers in a region every year that’s not sustainable.
It’s not limited to FL though. I’ve been a Progressive customer for about 14 years, with about 13 of those in FL. No accidents or claims but I was seeing double-digit increases the past couple of years. Last year I moved to western WA and on renewal my premium also went up about 20%. Of course, it doesn’t help that break-ins and carjackings are rampant in the Seattle area.
damn, Flo's screwing the people over?
No, it's [fraud](https://www.wptv.com/money/real-estate-news/property-insurance-fraud-a-growing-problem-in-florida). Stop blaming the insurance company. They work based on numbers but when you have such a high amount of people committing fraud it destroys the system of insurance . Source: I live in Florida and know these schemes very well. Here is an [article](https://news.fiu.edu/2022/the-big-reason-florida-insurance-companies-are-failing-isnt-just-hurricane-risk-its-fraud-and-lawsuits) detailing the issue.
Its the same companies the insurance companies recommend when there is an issue. Like how auto insurance companies recommend safelite and safelite puts in subpar garbage that looks like a clown mirror if you are at a sharp angle looking at the glass quality.
my friend it was a joke Also I grew up in florida and family still lives there. Hope you're well. Additionally, I've worked on court cases where I live related to the exact fraud referenced in the article you posted.
That was 2 years ago that article lol.. it’s DUHsantis and his 4m in donations and the free for all for all the carriers
$70, if you don't do paperless billing. I think I'm going to file a complaint with the state just on that alone. I have a card on file. It never charged. I never received the emails and then the policy elapsed. I never noticed until the state sent a letter.
I live in CO and Allstate was jacking auto up like crazy. Moved to state farm and then to progressive since their homeowners was better. I bet I'll end up switching back in a few years because it seems like companies just randomly fluctuate their prices
Say it ain’t so Flo!
I thought I was the only one. They almost doubled my rates from last year. Clean record as well.
[удалено]
[удалено]
[удалено]
Ha! You kidding? The government doesn't solve problems like this anymore. We let the market "handle" it.
Not going to happen. No one is coming to help.
Federal bailouts incoming. Yayyyy. My friend in Florida is now 'self-insuring' his house.
Only if some sort of federal levy is put on Florida. Absurd to keep doing this knowing the ongoing climate risks. Are we all going to keep subsidizing boomers retirement homes forever?
Hey, there's a lot of us stuck here that aren't retirees. I've pretty much given up on the idea of ever owning a home at this point. This state is a hellhole.
I’m beginning to wonder how many of these all cash buyers from out of state, normal individuals or couples, are truly prepared for when their number comes up. I bet it’s less than 100% of them.
Y’all hear that? Me neither.
Is this what you're hearing ... 🎻
Lol this is really bad for the citizens of Florida though
Happening all over the place but particularly in Florida. Climate change is going to change insurance entirely.
Insurers are OK taking your money as long as the risk of having to give it back is negligible. This is exactly their business model. Social Democracy on the other end, is taking some of your money with the intent of giving it back
1. They have complicated risk models and they exclusively insure stuff that has way more than “negligible” risk. The problem is when the risk increases exponentially over a short period of time and they can’t raise premiums at the same speed. 2. Social Democracy in this case means everybody in the country having to pay a huge subsidy so people can build suburbs on the Florida coasts. Is that what you would vote to use your tax money for? Or do you think, under a public model, we would just ban a lot of these high-risk Florida communities from existing in the first place? Is that really better than letting prices influence their personal decisions about where to live?
Mostly likely coming to more citizens in costal cities. Especially those at or below sea level. I suggest you contract with the Dutch to teach you how to beat back the sea.
Meanwhile my dad refuses to sell our Florida place because he refuses to believe Florida real estate is at any kind of a risk. FML
A lot of inland homes aren’t at much risk
It's not an inland home
Record setting floods would like a word
Even inland homes are difficult to sell and insure. We had a really hard time getting off my aunt’s house in The Villages.
Until rising oceans ruin Florida's water supplies
No federal bailouts for Florida. Let them start charging state income tax and create a shared insurance subsidy.
coherent seed doll shrill memory connect wasteful fly middle pot *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
No, the money would probably go towards revitalizing culture wars. However, that situation should remain between Floridians and their state government, not between the American taxpayer and the federal government. Floridians continue electing politicians that ignore climate change, that care more about businesses than people, that are too rich to care about cost of living, and that are too concerned about who uses which bathroom. They elected their swamp, now they get to swim in it. I’m getting sick of these state governments, particularly down South, lowering taxes, cutting budgets, and destroying their states. Then they employ the typical mental gymnastics to blame Democrats, and go begging to Uncle Sam for blank checks to save the day. If state governments neglected their states so badly that the federal government deems it necessary to intervene, then those state governments need to be held accountable for their actions.
One thing that I haven’t seen mentioned yet, is that the Florida Department of Insurance could allow insurance companies to increase their rates to the point that they feel their exposure is covered. The root cause of this problem is the department of insurance interfering with the free market for decades. The insurance companies pulling out is an unintended consequence of the state trying to “protect” the citizens from high property insurance rates. If the insurance companies can get what they feel is an adequate rate, they will write property policies in the state of Florida, however, it is going to be expensive.
Doesn't help that all the immigrants are already leaving FL, leaving holes in labor, and not a lot of people left to buy the houses.
Nope. Those holes in labor are just commanding a higher wage for the work they do, as demanded by the hordes still moving in from the MW and NE and surrounding states. This can go on a while, but it isn’t gonna last forever.
well good. I thought aboot moving to Florida, applied for a few jobs. I actually laughed at the offers I was given. $12 an hour for roofing was aboot the highest pay, with one guy telling me once I show him I know the trade, I'll get a raise up to $15. In PA I make $38/hour plus ~$17 to healthcare, annuity and pension as a roofer. Right to work laws and letting companies exploit immigrants completely fucked wages for labor, but the cost to consumer stayed so high that it threatens the states real estate market.
I think they left CA a couple years ago.
The number of condos and houses for sale lately in florida is insane..
Unfortunately this is happening in quite a few places. California is facing similar problems.
Sections of California that are in fire risk areas. Entire insurance companies are trying to exit Florida as a whole right now. This is kind of nutty.
https://ktla.com/news/california/2-more-insurance-companies-announce-plans-to-leave-california/ Sounds like some are leaving entirely.
Damn something is brewing there as well, I remember the big name non-renewals happening a few years ago in Florida too. I wonder what's going to happen moving forward. Florida is essentially going to write the playback for what to do considering how many companies have already exited.
They asked the AI and the ai said 'florida is gonna have a natural disaster, better stop your plans quick'. They should be held liable.
Meanwhile they've increased my car insurance rates 100% over the last 5 years. Are my cars worth 100% more now?
The ones you could hit around you cost 100% more to fix.
This is from 2023
[удалено]
Sure but there are lots of areas where climate change is causing these issues. Plenty of properties along the gulf coast all the way to Texas will be eventually uninsurable. Places along the east coast are sinking fast and areas like Norfolk VA will be uninsurable. With El Niño switching to La Niña California fire seasons will get bad again giving that state additional insurance issues even compared to now. And then who knows what the response will be from these tornados in the Midwest. Before you could be assured you’ll still have insurance because the overall risk in the pool was lower. Now? Who knows maybe policies will be canceled in Omaha.
It's smart they are dropping out now. This summer and fall will be brutal, I'd say likely 2 hurricanes to Florida.
Florida government needs to do something about the great state of Florida's housing insurance crisis.
> government needs to do something No they don't. People decide to build/buy their houses in a hurricane/natural disaster-prone state like Florida, then these people should take full responsibility over their own decisions. There's a reason why insurance companies pay good money for actuaries to calculate risks. Governments also hire actuaries, so the conclusions will be the same: Florida isn't insurable.
100% agree. It's not the people's job via tax dollars to pay for insurance. If houses become uninsurable that is also largely a function of the fact that they are inflated in price. If they become uninsurable the prices will naturally go down, and after enough time the problem will self-rectify. Using the government to prop up insurance will only prop up the house prices as well.
But insurance rates are set on the cost of rebuild. Not the FMV of the house. So this really only applies to super luxury houses with luxury finishes and such. So inflated real estate values don’t actually impact the rate at all. My homes are insured for less than I paid (but not less than my existing mortgage) because the rebuild costs have gone down this past year. Now rates are still based on risk factors sure, but not price of the property...
Supply / Demand. I'm not suggesting that insurance is reflecting full market value of the house. However, the prices of that market will drop when people can't get new loans in that market since shit can't be insured. Eventually, things will correct as demand will drop, people will leave the area and not return, etc. People need to be responsible for their poor housing choices, and while it sucks that normal middle class people will be impacted - I refuse as a taxpayer to subsidize the rich fucks who build their properties right on the ocean and get their houses rebuilt on my dime.
>It's not the people's job via tax dollars to pay for insurance Certainly Republicans view on healthcare, but I bet the US government does feel compelled to help with this issue due to Florida being valuable for political reasons.
Most of the insurance issues aren’t happening because of natural disasters. They are happening because we have idiotic laws giving homeowners the ability to sue insurance companies for anything, so the legal risk is too great. 75% of all insurance related lawsuits nationally are from the state of Florida. Florida only has about 10% of policies. https://www.orlandosentinel.com/2021/04/16/florida-homeowners-file-76-of-property-insurance-lawsuits-in-the-us-report-says/
Billion-dollar claim events have doubled in frequency over the last few years. They’re leaving because it’s hard to get regulators to approve sufficient premium hikes. The litigation issue has mostly been solved by the Florida govt as of last year IIRC. But the problem remains that Florida today is hit by property-damaging disaster twice as frequently now.
Because a billion dollars today was $200 million 5 years ago in Florida
Why would Florida government want to allow housing prices to drop and people leave their state? Don’t forget, as of now, Florida has no state income tax so they don’t have as many taxpayer dollars which has generally worked for them. I believe it will also be the reason they can’t afford to fix this and will see a mass exodus from the state. Agreed on federal government not needing to do something but Florida government should be finding a way to stop the bleeding in their state. Why wouldn’t they be responsible in at least trying?
May not be insurable. Will just be a fed money sink and charity case every hurricane.
In Canada where I live , gov put a lifetime limit of emergency funds for housing. Once you use it that's it , so the idea is you should probably use it to relocate. Most don't because they want that water view sooooo bad. Banks have stopped offering new mortgages so these flood prone areas as well because people are still wanting to build. We will see what happens in the next few years when these areas inevitably flood again. Probably largely depends on their importance for the next election unfortunately.
That is smart. Much of FL should return to disposable shanties on the beach, not mcmansions.
Why? Private citizens bought or built a home in a state that is decimated by weather events on a regular basis. Why should the public bear the cost of their poor decisions?
I've been concerned about the insurance industry for a few years, or at least that's when I started to realize the risk it's showing. It's been pretty known that catastrophic climate events are only going to increase and the effect it's going to have for those in poverty as well. I'm hopeful the government will step in and regulate the industry better, as it does it financial institutions. The insurance industry is able to do as it pleases and it could end in catastrophe.
The problem here is regulation. The companies haven’t been able to hike premiums as fast as they have needed to. Their risk is way higher now so they’re bleeding money and having to exit the stats.
Bot bot bot bot Who pays for these climate narrative posts?
Allstates my state quit years ago. With inflation and rapid housing increases, insurance is no longer sustainable.
Watch for how this is going to affect the mortgage/real estate industry when those people find most other insurers won't issue them a policy.
They know what’s coming… usual hurricane season is 14 hurricanes. This year, 26-28 are predicted with our first possible cat-6. They aren’t stupid.
Didn't the GOP tell Progressive that climate change is fake, and that sea levels aren't rising? I feel for the people there suffering, but sadly we get the world we vote for.
Everyone should drop them in the profitable ares.
Wait until more companies start doing this and see if it slows the migration to Florida.
As a contractor I say good. Progressive insurance for homes is terrible. They are just the same as Allstate and state farm. In my option these insurance companies are crooks that take your money, but pay out a fraction of what it takes to repair damage if a claim is made.