Another Florida Foreclosure Tsunami Is Gathering On The Horizon Thanks To Florida Governor Ron DeSantis
Listen up, Florida! Another Florida foreclosure tsunami is on the horizon. However, this time it’s not the fault of incompetent or greedy Wall Street bankers. The blame this time will rest at feet of Florida Governor Ron DeSantis and the GOP dominated Florida Legislature.Florida’s Insurance Crisis
More than a dozen Florida based home insurance companies have declared insolvency since 2019. Farmers Insurance stopped covering Florida and major insurers have not renewed policies for high-risk homes.
When insurers can’t cover the cost of natural disasters, reinsurance steps in. Reinsurance essentially is insurance for insurers and is “a significant factor in the Florida home insurance crisis.
Reinsurance coverage has become difficult to secure in Florida. Part of that is because reinsurance rates have skyrocketed.
Adding to the high insurance rates in the state are insurance fraud and legal system abuse.
Florida residents make 9% of all homeowners insurance claims in the U.S. However, the Florida Office of Insurance Regulation says those claims account for 79% of lawsuits over claims filed.
Six of the 10 most expensive cities for homeowners insurance are also in Florida:
- Hialeah, average premium, $17,606
- Miami, average premium, $16,717
- Fort Lauderdale, average premium, $15,484
- Hollywood, average premium, $13,834
- West Palm Beach, average premium, $13,123
- Port St. Lucie, average premium, $11,897
- Kenner, Louisiana, average premium, $10,204
- New Orleans, average premium, $9,780
- Ocean Springs, Mississippi, average premium, $9,428
- Thibodaux, Louisiana, average premium, $7,763
Even State-Run Citizens Property Insurance Is Now Shedding Plans
State-run Citizens Property Insurance Corp. is the largest insurer in Florida. Data from S&P Global shows Citizens grew over 65% in a single year. This was due to more and more Florida homeowners finding themselves unable to buy policies elsewhere.
Created as an insurer of last resort, Citizens has also outpaced every other provider in Florida. This was due to customers finding themselves dropped from their insurance companies or completely priced out of the market.
Citizens can drop policyholders who find comparable coverage from a private insurer. However, the new premium cannot be more than 20% than renewing with Citizens.
Another proposal would have Citizens cover hurricane damages instead of private, for-profit insurers. Citizens president and CEO Tim Cerio warned taking on Florida’s hurricane risk could make it challenging to acquire reinsurance.
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