As I said to another poster, of all the people moving to Florida, a sizeable percentage want to live as close to the ocean as their finances allow, often times their house is built on land that at one time was a swamp, it’s only natural when a hurricane comes thru the house gets destroyed.
I could see some type of hybrid insurance market emerging, the closer you live to the ocean the higher price you pay and the amount of coverage you can get gets reduced.
Those living on the oceanfront get no insurance for hurricane caused damage because they are likely self-insured, as you move inland and in the center of the state where your risk is significantly lower, you can get more insurance at a lesser cost, etc.
Right now, people living in the center of Florida who have very little risk of hurricane damage are subsidizing those homeowners who choose to live on or near the ocean and have a much higher risk of hurricane damage.
I could see a future where if you live within a mile of the ocean, you can’t get insurance unless you pay a fortune and even then, it might not happen, compared to those living inland who can get insurance at a reasonable price.
Florida was booming in the 1920s, until the 1926 Hurricane that hit Miami.
The State went into a depression for years.
Right now, people living in the center of Florida who have very little risk of hurricane damage
They probably have little risk of storm surge but the wind damage potential is about the same. BTW, flooding by surge is covered by the Federal Flood program which was created when the insurance companies decided to off load that problem to the feds. There is also a significant difference in potential of a major hurricane strike, cat 3 or higher, in the southern verses northern portions of the state, especially on the eastern side.
This coming hurricane season promises to be one for the records unfortunately due to a certain climate set up i.e. northeast blocking high and warmer ocean temps.
I agree with you. I live 12 miles from the ocean, but I pay the same rate as those next to the beach. The house is over 40 yrs old and has been through about 15 hurricanes with no damage. With current technology, the insurance companies could easily determine damage risk at each individual house location, but they don’t want to price in the risk at the house level or even the zip code level.
I live in Central Florida and have looked at waterfront places in Stuart. The condo association must have insurance and there is no control how much will be paid. All depends on cost of insurance. So insurance paid by the association has to keep going up. And up.