FLORIDA – The rising cost of home insurance has prompted some families to leave Florida and also led to an increase in homeowners deciding not to insure their homes, citing the high price of premiums.
“They don’t want to pay, you know, 10,15 $20,000 for homeowners’ insurance,” insurance agent with Brightway Insurance Matt Carlucci Jr. said.
Carlucci said not having a home insurance policy is not a recommended course of action, which is only available to people who have paid off the existing mortgage on their house.
“Everybody’s, you know, getting renewals, and very expensive,” Carlucci said. “And they’re wondering how they can afford it.”
According to research conducted by the Insurance Information Institute, 12% of homeowners across the country don’t have insurance.
In contrast, 15 to 20% of Florida homeowners don’t have insurance, meaning they are willing to take the risk against hurricanes and other hazards.
“Particularly we see this trend growing with retirees here in Florida,” Insurance Information Institute Spokesman Mark Friedlander said.
But Friedlander said that’s not the only trend making headlines.
He added that realtors are hitting roadblocks selling houses because of high property insurance premiums. He said realtors are running into issues when it comes to closing on home transactions, saying the cost of insurance and the home is putting the price tag out of reach for some.
“It’s throwing those equations off target, and in some cases to the point where the homeowner no longer qualifies for the mortgage because the insurance costs so much. So, it’s clearly having a detrimental impact,” Friedlander said.
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Friedlander said Florida property insurance hikes are also starting to impact the state’s popularity, with some Floridians leaving the state altogether because they can’t afford to live here.
“We are starting to see some reports from the real estate industry, showing that homeowners are departing the state of Florida, and it’s also having an impact on homeowners interested in moving to Florida,” Friedlander said.
Realtors said some retirees are choosing neighboring states like Georgia, Alabama and Mississippi to retire, citing price as the main reason.
Insurance experts, however, say recent efforts to reduce premiums by state legislators are starting to show signs that insurance premiums may decrease at some point in the future.