Homeowner’s Insurance in Florida is a Joke

Weatherman · 05-12-2006, 07:28 PM

I can’t believe what I got myself into when I moved down here 12 years ago.

After Hurricane Andrew blew apart southern Miami-Dade County in 1992, it has been very difficult to get homeowner’s insurance in Florida. When I arrived in 1994, no new policies were being written, I had to go to the “insurer of last resort”, The State of Florida, to get a policy to cover my new home.

Well, over the next couple of years, The State of Florida doubled the insurance rates. The escrow account with my mortgage lender couldn’t keep up, so I had to take over the payment of my insurance myself after “Uncle Florida” threatened to cut me off because my lender had insufficient funds to cover the bill.

In the late ‘90s, Uncle Florida wanted to get out of the insurance business, so they sold off policies to any insurer who would take them. My policy got bought by a private company, which proceeded to raise my rates by another 50% (for a total of a 200% increase in just a few years).

Everything was going ok until 2004. Then, Florida got hit by Hurricane Charlie, Ivan, Frances and Jeanne. My insurance provider was starting to get nervous and raised my rates by another 20%. 2005 was the last straw. Hurricane Dennis, Katrina, Rita and then Wilma. The insurer sent me a note only a couple of days after Wilma saying they wanted out of the insurance business and were not renewing my policy. At the worst possible time (right after a major hurricane) I had to go shopping around for a new policy.

I got lucky (or so I thought), and found a new insurer relatively quickly and only paid 10% more for coverage.

I found out this evening my luck had just run out. My mortgage lender sent me a note saying my insurer no longer met their financial performance rating and I was required to find a new insurer no later than July 8th.

So, I’m back in the frickin’ market again.

I would not be the least bit surprised if I have to go back to Uncle Florida again, especially with the 2006 hurricane season starting in just a little over two weeks. I, also, fully expect to pay twice as much as I do now to insure my home.

I’m beginning to wonder why I still live down here.

abigtroutt · 05-12-2006, 07:39 PM

I use Nationwide and so far so good. In 1997 we had the same problem and they were not taking new customers until there was no hurricane in the Gulf. It hurricane passed and hit the pan handle then we got the insurance. It does suck .... but I dont like snow.

theplatypus · 05-12-2006, 07:51 PM

Quote:

Originally Posted by abigtroutt

I use Nationwide and so far so good. In 1997 we had the same problem and they were not taking new customers until there was no hurricane in the Gulf. It hurricane passed and hit the pan handle then we got the insurance. It does suck .... but I dont like snow.

You could live int he desert.

Casey · 05-12-2006, 07:54 PM

I like the sun and hate the snow whats 5K a year for insurance oh well.

abigtroutt · 05-12-2006, 08:04 PM

I'm luckey..purchased my home when taxes were still low...and Save our home act still workin to off set rise in insurance.......

ChrisPrusha · 05-12-2006, 08:14 PM

I had no idea it was that bad. That's stinky!

Weatherman · 05-12-2006, 08:25 PM

Quote:

Originally Posted by abigtroutt

I'm luckey..purchased my home when taxes were still low...and Save our home act still workin to off set rise in insurance.......

That does help a lot on taxes. But, with replacement-cost coverage on your home, the insurer is going to look at the current market value in determining the risk.

After Wilma, I got a quote from several roofing companies on how much it would cost to completely redo my roof. The average quote was $35,000. This is for a 2,200 sq ft house. I could not believe it.

tims · 05-12-2006, 08:38 PM

sorry for your headacke,
my parents lost there house with Jeanee, it is still not done..they ended up in georgia and still are fighting uncle sam and the homeowners stuff .. they owna frame and half a wall..too bad you cant start our own insurance agency..

Weatherman · 05-12-2006, 08:50 PM

Obviously, complaints about rising insurance costs are small potatoes compared to the pain of completely losing your home and having to relocate.

I know what it’s like to have my home severely damaged and unlivable. When I lived in Oklahoma, my house was hit by a tornado. It tore the roof off. I had to live in a hotel for three months.

So far, I’ve only suffered minor damage from all the hurricanes. For that, I’m grateful.

tims · 05-12-2006, 08:53 PM

i think we need a TRT community ...

Fly Guy · 05-13-2006, 12:30 AM

Now that i dont ski but a handful of times a year...im not so fond of snow on the ground a couple of months out of the year but........the flip side of that is that the sun shines where i am at 300 days a year.

I LOVE OREGON!!!!! Hurricanes and tornadoes are just things I read about on the news and donate a little to when they are real bad.

I did see a TORNADO once here though. It lifted a 4 foot long two by four about 30 feet off the ground!!

Twitterbait · 05-13-2006, 02:53 AM

I agree. any of our florida friends are more than welcome up here. in the portland area we get snow maybe once every 6 years and otherwise it is great. the summers are actually warm-hot and the winters are cool with some rain and sun mixed together.

combiemaster · 05-13-2006, 03:33 AM

ok move to california were only rains 10-15 days of a year and if you dont like snow move to the cities not the mountains. But the best is the traffic

lols

Weatherman · 05-13-2006, 05:23 PM

I love the Pacific Northwest. (There is a reason why Mt. Rainier is my avatar.) I lived in Seattle and Olympia, Washington from 1983 to 1988. If I move again, western Washington is where I’m going to go.

Southern California? I don’t think so. Much too dry for my taste. I lived in Newport and Laguna Beach from 1967 to 1979. That was back when Orange County was still mostly orange groves and cattle ranches and Laguna Beach was a little artist colony way down the coast away from everything else. Not quite the same, now.

abigtroutt · 05-13-2006, 08:10 PM

Quote:

Originally Posted by Weatherman

After Wilma, I got a quote from several roofing companies on how much it would cost to completely redo my roof. The average quote was $35,000. This is for a 2,200 sq ft house. I could not believe it.

Before Charley hit I refinanced my house, put the pool in and had a new roof done.... The roof cost $6,000 (2100 SQFT)and the pool $24,900 (14x28) now you just cant touch that....the cost is twice that now...!!!

Weatherman · 05-13-2006, 09:25 PM

Talking to people who lived through Andrew, they said $35,000 is not the least bit surprising. Labor and supplies are tight, and there is absolutely no incentive for roofers to competitively bid on contracts. If one customer is not willing to pay $35,000, there are ten others in line who will.

Assuming we don’t have any more significant storms in the next few years (which, unfortunately, is unlikely) prices will start to come down.

When I asked friends, who live in San Diego, what they paid to replace their tile roof, they said $21,000. For a 2,500 sq ft house, that’s about what I expected the price should be.