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Thread: homeowners insurance

  1. #1
    cameron_keys
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    Default homeowners insurance

    So I was forced to do the state insurance after EVERYONE either went out of business or pulled out of FL after Hurricane Wilma.

    Does anyome know a company that writes new policies in south Fl now?

  2. #2
    Banned Melonie's Avatar
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    Default Re: homeowners insurance

    ^^^ all of the big name insurance companies are avoiding new Florida insurance policies like the plague. The reason, as you say, is that the risk factors associated with a Florida home, like a home below sea level in New Orleans, or a home in any other area with a documented history of heavy losses due to weather patterns, actually require the payment of an insurance premium that nobody can afford. Previously, insurance coverage in Florida, New Orleans, and similar high risk areas was subsidized by over-charging people like myself (who lives in uneventful upstate NY) for similar insurance.

    After Hurricanes Katrina / Wilma etc. these subsidies were brought to public attention ... the insurance companies were no longer willing to subsidize insurance premiums in high risk states by overcharging for insurance in low risk states ... the insurance companies were not willing to cut their profit margin or assume extra risk ... so they simply stopped writing policies in high risk areas.

    With the exit of the private insurance companies, state gov'ts in high risk states had little choice but to underwrite insurance for state residents while charging 'affordable' premiums - regardless of the fact that the premiums charged are not high enough to actually cover the loss risk. However, this also transfers the risk of future losses to the taxpayers of that high risk state rather than to the investors in a private insurance company. In other words, if Florida experiences another Wilma-like Hurricane this year, the state may have to impose an income tax in order to raise enough money to pay off on state program underwritten insurance claims !

  3. #3
    cameron_keys
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    Default Re: homeowners insurance

    Yes,I know why it happened...I'm just hoping there are some that will come back since we havent had a hurricane since wilma.The state insurance is a complete rip off

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    Default Re: homeowners insurance

    ^^^ not happening ... the private insurance companies lost billions the last time around.

  5. #5
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    Default Re: homeowners insurance

    The only private sector insurance company that I know of that might write homeowners policies in Florida is USAA. But, you have to qualify for membership. Essentially, you have to be in the military, retired or honorably discharged from the military or a child or spouse of someone who is qualified.

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