“The report notes one of the big historical problems in Florida: In 2021, Florida had 6.91% of all U.S. insurance claims in the U.S. – but three out of four property insurance lawsuits (76%) were in Florida (from Fla. Releases County-by-County Property Ins. Report, Florida REALTORS® website at https://www.floridarealtors.org/news-media/news-articles/2023/01/fla-releases-county-county-property-ins-report?utm_campaign=1-12-23+Florida+Realtors+News&utm_source=iPost&utm_medium=email).”
The combination of lawsuits, hurricanes, and the rising prices of homes over the past couple of years is a perfect storm for higher property insurance rates in Florida. That is what happened back in 2005-2006 as Florida was plagued with hurricanes and rising home prices, and both the hurricanes and rising prices of 2022 make for a much worse financial burden on Florida insurance companies now.
Insurance companies are not in business to lose money; they are in business to make a profit. So they must pass on the cost of doing business to the consumer – or to the government for bail outs which will actually in the long run be a cost to the consumer in the form of higher taxes. I could be wrong, but historically, that is what happens…..
Florida’s real estate market is certainly a state to watch in 2023-2024!