Florida homeowners and flood insurance (Naples: homes, new construction, tile)

[1insider]

I keep a running document of homeowner's comments about their FL insurance increases. These are all collected from various forums including this one from the last month:

• my insurance went from 1700 to 4500 since 2020
• 10k quote without windstorm 11 ft above sea level near MIA.
• Just got our renewal. An eye-watering 58% increase. From $2600 to $4100.
• $4000 -> $9000, First Security for a 2400sqft house, 20 miles inland
• $3,700 2022 - $5,000 2023
• it's time for our homeowner's insurance (we are currently with Kin) to renew and it looks like it is doubling from $1,800 to over $3,600.
• My insurance went from $2300 to $5100 at renewal
• I went from $1600, to $3000, and now $6000. I can’t afford this anymore!
• Had the same issue. 4x what we paid in 2021
• My house is outside of even the biblical flood zones and 40 miles from the coast, my insurance just went from $5k to $10k.
• Last 3 years mine went from 2500 to 3500, then this year they wanted 5000
• Kin doubled me to almost $12,500
• with progressive. Went from 2900 to 12k. Ended up with Citizens for 4k
• Mine was $5K doubled to $10K
• I bought my home in 2016. My insurance was $1171.00. Jump to this year, I went with USAA for the low low price of $4200.00. No claims

This kind of acceleration in premiums does not appear to be sustainable. What is the end game?

[wp169]

Originally Posted by 1insider

I keep a running document of homeowner's comments about their FL insurance increases. These are all collected from various forums including this one from the last month:

• my insurance went from 1700 to 4500 since 2020
• 10k quote without windstorm 11 ft above sea level near MIA.
• Just got our renewal. An eye-watering 58% increase. From $2600 to $4100.
• $4000 -> $9000, First Security for a 2400sqft house, 20 miles inland
• $3,700 2022 - $5,000 2023
• it's time for our homeowner's insurance (we are currently with Kin) to renew and it looks like it is doubling from $1,800 to over $3,600.
• My insurance went from $2300 to $5100 at renewal
• I went from $1600, to $3000, and now $6000. I can’t afford this anymore!
• Had the same issue. 4x what we paid in 2021
• My house is outside of even the biblical flood zones and 40 miles from the coast, my insurance just went from $5k to $10k.
• Last 3 years mine went from 2500 to 3500, then this year they wanted 5000
• Kin doubled me to almost $12,500
• with progressive. Went from 2900 to 12k. Ended up with Citizens for 4k
• Mine was $5K doubled to $10K
• I bought my home in 2016. My insurance was $1171.00. Jump to this year, I went with USAA for the low low price of $4200.00. No claims

This kind of acceleration in premiums does not appear to be sustainable. What is the end game?

I watched a you-tube video showing that hedge funds are buying multiple homes in Sarasota to rent them out, I guess only the rich will be able to afford Florida pretty soon.

[blueskies2023]

Originally Posted by 1insider

I keep a running document of homeowner's comments about their FL insurance increases. These are all collected from various forums including this one from the last month:

• my insurance went from 1700 to 4500 since 2020
• 10k quote without windstorm 11 ft above sea level near MIA.
• Just got our renewal. An eye-watering 58% increase. From $2600 to $4100.
• $4000 -> $9000, First Security for a 2400sqft house, 20 miles inland
• $3,700 2022 - $5,000 2023
• it's time for our homeowner's insurance (we are currently with Kin) to renew and it looks like it is doubling from $1,800 to over $3,600.
• My insurance went from $2300 to $5100 at renewal
• I went from $1600, to $3000, and now $6000. I can’t afford this anymore!
• Had the same issue. 4x what we paid in 2021
• My house is outside of even the biblical flood zones and 40 miles from the coast, my insurance just went from $5k to $10k.
• Last 3 years mine went from 2500 to 3500, then this year they wanted 5000
• Kin doubled me to almost $12,500
• with progressive. Went from 2900 to 12k. Ended up with Citizens for 4k
• Mine was $5K doubled to $10K
• I bought my home in 2016. My insurance was $1171.00. Jump to this year, I went with USAA for the low low price of $4200.00. No claims

This kind of acceleration in premiums does not appear to be sustainable. What is the end game?

Residents will leave the state. Condo sales will tank. Who wants to pay 900$ a month or more for a cut lawn and a pool and bocci?

[blueskies2023]

Originally Posted by gumon

Anyone else feeling these rates go through the roof? My flood insurance went up 5 times.
What state would you go to if you left Florida. It's getting so expensive

NC, Arizona, NM, Delaware, even the northeast might be better now. This Sh&&&*t is real bad.

[hardluk1]

Do your research well before moving to any area.

[bobbyanylitics]

"The only thing that cures high prices are high prices" The great Milton Friedman didn't take into account the skewing of a free market with regulation. Not many business's besides insurance have laws where you have to buy their product. This screws up everything from the cost of building it to mowing the lawn!!!

The only answer is to own your home and do not buy insurance. Easier said then done I know. But it is possible. You may have to live in a less expensive location and dwelling and it will force the price of everything down.
My Dad bought on Marco in the 70's when it was reasonable, paid off the place and just had some type of liability only policy. By 2020 when it sold, he only had to eat two broken windows, some soffit material, lanai screen and repair a couple of tiles. The money he saved on premiums in 45 years would pay for the house. I know it only takes one storm in the wrong place, but if your risk tolerance is zero, you'll never get anywhere on your own and don't deserve to have anything.

He also said if you can't do everything yourself, meaning repairs, etc., you'd better have a lot of money. And that's more true today than then, because today's trades people could care less about their clients, people's ignorance gives them a never ending supply of idiots willing to hand them money.

[ndcairngorm]

It is easier to self-insure if you are a REALLY handy person. But if not, I will give an example of the costs involved in a flooded-out house and car in the recent Ft. Lauderdale floods. We are intimately familiar with these costs because our cousin lost his house and car there.

Costs: Car totaled - they got a new Kia Soul (25K) with the insurance money

House costs to fix up, so far:

Water remediation: $28,000. This includes tearing out sheetrock to the 4' level, removing kitchen cabinets, drying out inside the walls, clearing out the wet rubbish inside the walls, sanitizing the area, and replacing the sheetrock.

Clearing out furniture and house goods, packing and moving to warehouse and storing for one month - $7,000

Complete new kitchen from walls outward: $10,000 (cabinets only)

Removal of all carpet and other flooring, replacement flooring: this cost I haven't been told by cousin

Painting of all walls - $5,000

Hookup of kitchen appliances and plumbing in sink - to be determined as hasn't happened yet

New washer/dryer - $2,000 - includes hookup

New furniture - everything that was upholstered had to go. Sofa and l.r. chairs, two beds.

Air conditioning repairs: not aware of these costs, but the air handler was on the floor in one closet so had to be replaced.

These are only the costs and work I'm aware of. This was a small two bedroom, one bathroom house.

The house was uninhabitable for the month and a half after the floods. That meant finding somewhere else to stay.

Self-insuring is cheaper, until it isn't.

[bobbyanylitics]

I agree the costs add up quickly, i just started to furnish a small 3/2 house and spent 24k and it doesn't look like I put anything in it yet. Also the older I get the less handy I am. Even if he saved premiums for 25 years, this one incident wouldn't work. I am sorry for your cousin and most on this thread aren't even talking flood insurance.
However, I, not being 70 yet, would try to tackle some of those costs, such as stripping and replacing the sheetrock, storage under tarps in my yard flooring ,painting and plumbing. Just got a nice washer/dryer for 1400. Precharged ac unit inverter driven is about 4k everything included. a smaller unit would be less but either requires skills most don't have. Hopefully he has family or friends close enough to work to stay with.
As someone here said this is a risky State, and that risk has to be well thought out.

[karpo1]

Self-insure works if house is built to handle most storms, like concrete construction, tile floors, impact windows, etc.

[bobbyanylitics]

I notice newer homes' premiums are noticeably less costly, probably from code changes over the years.
One thing I've also noticed with a neighbors home, which insurance companies don't seem to consider, is the fact that impact windows still spider when hit by debris and have to be replaced. Quite costly, while good shutters keep windows from being damaged at all. If I were building, I would rather have insulated double or triple pane windows to save energy, with good shutters to protect the window. Even if code required impact glass, they do make insulated impact windows, but are expensive.