This is just a question, as I haven't seen any big news about it. It's anecdotal too. My Aunt and Uncle are moving from Florida to Michigan this summer. My Uncle is an airline mechanic, and lost his job in Florida (where he lived with my aunt, who grew up there) and moved to Detroit to work for Northwest. Since Hurricane Katrina, their home insurance has skyrocketed so much, that it is higher than their actual house payment. It's so bad, that they literally can't afford their house anymore, and are moving to a six acre ranch in Michigan. It might be a different story if my Uncle was living down there, but with them being separated for so long, it just seems the right thing to do in the face of skyrocketing bills.
My Aunt is incredibly sad, she loves Florida, and we've joked for decades that nothing will EVER get her out of that state (the same way no force will ever get me out of Michigan for very long).
To be more specific, they live in Clearwater currently. Has anyone else down there felt the sting of raised insurance rates?
Posted by Belle (Member # 2314) on :
My mother-in-law lives in Gulfport and her insurance has also skyrocketed.
I think it's a shame for people who can no longer afford to live where they do, but at the same time I understand. If you want to live somewhere with risk, you must be prepared to pay to insure that risk.
Posted by Stephan (Member # 7549) on :
I hear about this constantly. I'm one of the evil devils that sells insurance, but in Maryland. Florida is just the first step. I forsee this happening along the entire gulf coast, and east coast. I know of one company that has completely pulled out of writing new customers in Delaware and New York. They are not afraid of paying claims, without claims they wouldn't need to exist. They are afraid of going out of business if a big enough storm hits, and they can't afford to pay everyone.
Here in Maryland my company is going to a mandatory 5% hurricane deductible in about half of the state. Which means if your house is insured for $200,000, and a hurricane strike, you are out the first $10,000. I try to explain this to my customers in those areas because I don't think it is good for them. Unfortunately many just don't understand or comprehend what I am telling them.