Replies

Just stop and *think* for a minute. If insurance companies can't make money insuring properties it can *only* be because their rates must be capped by law (otherwise they would simply charge what the risk was worth to them).

And, if the insurance premiums are capped by law, then forcing these companies to provide insurance in various markets in order to sell in other markets is no different than asking them to pay for the privilege of doing business in the state.

I would like to say such shenanigans is un-American, but then I remind myself that I live in a country in which government has a habit of subsidizing stadiums for professional sports franchies. So, I guess it's all **TOO** American.

The inmates, as they say, have indeed taken over the asylum!

Sounds about right to me.
I am not a "homeowner".
But I am a Florida resident, and I do think major changes should be made regarding property insurance.
If you want to live/build on the beach, or a known flood zone, it should be entirely at your own risk, and your property should be deemed essentially uninsurable.
If you can't afford to repair/rebuild your 2 million dollar home after a catastrophic storm, you really can't afford living in that area, or at least not in a 2 million dollar home.
There are homes in Florida I couldn't afford to own, even if they were given to me, because the property taxes alone would be more than I could pay.
I have seen the "For Rent" signs in my area increase tenfold in the last year, and rental rates are coming down, because the houses can not be sold.
Since the property, bought ten years ago for 80K is now valued on paper at $3-500,000.00 for tax purposes, that is also the amount the new buyers property insurance will be based on.
All that on paper "value appreciation" has to be paid by someone.
In the past it has been paid by property speculators, as they bought and sold to each other.
They are tapped out and the ponzi scheme is now upside down.
Tough!

Personally, I think the caps are the problem. Because if there is a cap, that's what businesses will charge, regardless of reality. The insurance companies are charging higher rates than what is needed to cover losses because the government caps are set that high. A lot of people in the forum believe in an unregulated insurance market and that the insurers are losing their shirts to storm damage. Most people do not understand that over the past 4 years, rates have more than quadrupled. In 3 years I went from ~$600 to almost $3000 - a x5 increase. THis year, if the legislature does not rescind the planned increases, my rate will increase by about $2700. Our rate increases are more than what most people pay in other coastal states in total! Insurance payments are often more than the mortgage payment on a house! The insurance companies are betting that everyone will lose their house in a storm before the mortgage is even paid. That is just nonsense. These rates are well above and beyond what the risks are. The insurance companies are gouging as much as they can.

The other serious point is that it is going to destroy the economy in FL. This state is a relatively low income state and the insurance rates are simply unaffordable to many. The political and economic reality is that the insurance companies are making money, not losing it and it is killing the state.