I live in FL, and did not realize the Sinkhole Lotto problem
Something has to be done with the insurance....businesses cannot relocate to FL if people cannot get insurance for their new homes and properties....besides the Citizens sham
The best way to handle this would be to outlaw any requirement for people to have property insurance. Nothing is more socialist than being forced to buy something
If insurance companies actually had to sell a product...the rates would go way down. As long as homeowners are forced to buy insurance...the insurers can name any price
Instead of taxpayer bailouts....how about bringing back RISK to the insurance companies. Sure, some will leave the state, but the ones who stay will have a large market to make money from
You aren’t required to have homeowners insurance by the government. You are required by your mortgage holder. No insurance and there would be no mortgage.
It would be cheaper to get rid of the lawyers. IMO, most of the damage is really settling due to poor construction. Occasionally a sinkhole will open up but those are obvious.
No insurance, no mortgage. Of course, you are free to lend to folks and not require insurance to protect your invested capital. Let us know how that works for ya.
re: outlaw any requirement for people to have property insurance
In our case the requirement for insurance is on the part of the mortgage company, not the State of Florida.
Our insurance tripled a few years ago and even at that we can find only one company that will write a policy for a frame house. I have very little faith in the office of the insurance commissioner. Every detail of what these companies do and what they charge should be scrutinized by that office! I am convinced a truly aggressive investigation into claims would turn up a LOT of outright fraud, etc.
I lived in Florida for 30 years, left in 2006.. So you can believe me when I say I paid the ridiculous insurance premiums. Mine went up 20% a year for a decade after Andrew. 40% a year for the 4 years proceeding our fleeing the state.
There is no law requiring homeowners insurance. It is demanded by lenders to protect their loan. I wouldn't loan anyone $150K for a mortgage if they had no insurance on the collateral (the home). That would be plain stupid. Nothing socialist about it. Socialism would be the government requiring banks to give you a mortgage with no HO insurance.
Pay off your mortgage, then you can cancel your HO insurance.