Soaring property insurance rates: Questions that deserve answers!

[AlwaysWrite]

Especially here in Florida, homeowners are being saddled with major and rapid increases in property tax premiums, and hurricanes are cited as the primary reason for he soaring rate hikes. And that raises key questions ...

NOT EVEN ONE HURRICANE SIGNIFICANTLY IMPACTED FLORIDA IN THE 11-YEAR PERIOD FROM 2006 TO 2016, SO WHY DIDN'T INSURANCE COMPANIES STOCKPILE MASSIVE AMOUNTS OF MONEY DURING THAT TIME -- MORE THAN ENOUGH TO ENABLE THEM TO NOT RAISE RATES SO DRASTICALLY IN SUBSEQUENT YEARS?

Indeed, no hurricane effected peninsular Florida during those 11 years, and only three hurricanes significantly hit anywhere in the U.S. from 2006 to 2016 -- Gustav and Ike in 2008 and Isaac in 2012 -- and the only Florida impact from those were moderate rain in the western Panhandle.

So wouldn't it be interesting to find out HOW MUCH WAS TAKEN IN ON PROPERTY PREMIUMS in each of those 11 years and HOW MUCH WAS PAID OUT IN PROPERTY CLAIMS during that time?

If the insurance firms can collect for 11 years and pay out virtually nothing, shouldn't they have built up a "war chest" of excess funds, assuming there wasn't massive incompetence and/or fraud involved?

Questions that deserve answers!

 

[Greg T.]

Climate change wackos.

 

[9andaWiggle]

Simple answer; because they can.

 

[Djarum300]

Especially here in Florida, homeowners are being saddled with major and rapid increases in property tax premiums, and hurricanes are cited as the primary reason for he soaring rate hikes. And that raises key questions ...

NOT EVEN ONE HURRICANE SIGNIFICANTLY IMPACTED FLORIDA IN THE 11-YEAR PERIOD FROM 2006 TO 2016, SO WHY DIDN'T INSURANCE COMPANIES STOCKPILE MASSIVE AMOUNTS OF MONEY DURING THAT TIME -- MORE THAN ENOUGH TO ENABLE THEM TO NOT RAISE RATES SO DRASTICALLY IN SUBSEQUENT YEARS?

Indeed, no hurricane effected peninsular Florida during those 11 years, and only three hurricanes significantly hit anywhere in the U.S. from 2006 to 2016 -- Gustav and Ike in 2008 and Isaac in 2012 -- and the only Florida impact from those were moderate rain in the western Panhandle.

So wouldn't it be interesting to find out HOW MUCH WAS TAKEN IN ON PROPERTY PREMIUMS in each of those 11 years and HOW MUCH WAS PAID OUT IN PROPERTY CLAIMS during that time?

If the insurance firms can collect for 11 years and pay out virtually nothing, shouldn't they have built up a "war chest" of excess funds, assuming there wasn't massive incompetence and/or fraud involved?

Questions that deserve answers!

What were your rates like? My folks had fairly good rates during that time. Now rates are crazy but that's typically how it goes. We had tornadoes back in 11 and then rates doubled.

I don't know about Florida but for profit insurance companies here in Alabama have to have minimum backstop and I think Florida requires the same. Blame that on the state insurance commission for keeping that too low.

Also blame building costs. My insurance has almost doubled in the last 4 years because lumber is 3x the price it was in 2019.

In regards to the question, part of the problem is the amount of damage SINCE 16. Irma, Michael, Ian, Mathew, Ian....

I know my Sister is having a hard time keeping insurance in Jacksonville. Basically they are saying she needs to put on a new roof or they will drop coverage. I only thought that was an issue when buying a new home but I guess they can audit down there so that customers can't claim minor wind damage just to get a new roof.

They are talking about doing that up here in Alabama because of the hail and tornados we get.

 

[Djarum300]

Simple answer; because they can.

Keep in mind most states heavily regulate home owners insurance. Good or bad, this is why many companies have left Florida.