Insurance Crisis Florida

[Ashraf Eldabh]

I'm about to start investing in direct real estate in florida which traditionally have been a hot market but I'm worried about the insurance crisis affecting the market and cash flow. What do you guys think?

[Sean K.]

It is same in Northeast.  Insurance companies are increasing rates on homeowners due to costs of rebuilds, reinsurance, catastrophic storms etc. that were mentioned before.  You may find more regional companies a better option as they are only affected by what happens in your area vs. a national company is affected everywhere.  So when you hear about wildfires, floods, hurricanes, tornados, etc. that affects a national company more than say a company that only writes insurance in NJ or PA  or similar situation where less losses have occurred.  The cost of supplies however affects everyone as those storms drive demand for rebuild materials.