New report details Florida home insurance crisis
A recent report provides more details on the impacts of the Florida home insurance crisis.
TAMPA, Fla. - A recent report is unpacking the impacts of rising homeowners insurance costs in Florida.
According to a new reportfrom online realtor Redfin, nearly three-quarters (70.3%) of Florida homeowners say they or the area they live in have been affected by rising home insurance costs or changes in coverage (e.g., their insurer dropped them) in the past year. This compares with less than half (44.6%) of homeowners nationwide.
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The report is based on a Redfin-commissioned survey in February of this year. The survey was fielded to 2,995 U.S. homeowners and renters.
"Insurance is top of mind for homeowners in Florida and California because those states are the epicenters of the insurance housing crisis," Kenneth Applewhaite explained in an April 17 news release.
Applewhaite elaborated that many homeowners have seen their premiums skyrocket, and some have lost coverage altogether because intensifying natural disaster risk has prompted many insurers to stop doing business in Florida and California.
"In the Sunshine State, 11 insurers have liquidated amid growing flood and storm risk," he wrote.
Mounting insurance costs and natural disasters are prompting some people to relocate. According to Redfin, in Florida, 11.9% of survey respondents who plan to move in the next year cited rising insurance costs as a reason — roughly twice the national share of 6.2%.
But while some people are leaving disaster-prone areas, there are still more people moving in than out, a separate Redfin analysis found.
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"Homeowners living in areas where insurance premiums are surging are at risk of seeing their properties gain less value than homeowners in areas with stable premiums — and in some cases, they may even lose money," said Redfin Chief Economist Daryl Fairweather. "Homes with low disaster risk and low insurance costs will likely become increasingly popular, and thus more valuable, as the dangers of climate change intensify."
Condo prices in some parts of Florida have already started to fall amid an increase in insurance costs and HOA fees.
