What is going on with insurance in FL?!?

Question

BP-

Can somebody help me understand what's happening in FL with insurance on rentals? I have a detached duplex in JAX and I can't get a reasonable quote. My existing insurer pulled coverage and exited the FL market entirely. I'm finding many other companies doing the same - like FL is toxic or something.

My lender ended up purchasing a policy for me but the rates and terms are terrible. Trouble is, I'm laboring to get anything to replace it. The property is in good condition. Fully rented and stabilized. New major systems and roof. Not in a flood zone.

I can insure my SoCal properties in 30 seconds online without a hiccup and they literally sit on the San Andreas Fault. Yet I cannot get anybody to touch the JAX property and I'm feeling flustered. Looking for explanations and, of course, referrals to reputable, capable insurance agents specializing in small rentals.

Thanks, BP!

Jason Smith · Answer

@Travis Moe roof scams "According to the Insurance Information Institute, in 2021, over 100,000 property claim lawsuits were filed in Florida. They said no other state had over 900." Why Florida can't change the laws to be like other states I don't know. All the ambulance chasing lawyers are doing roof scams now. they drag out the lawsuits forever so the insurance company settles.

Ian Halter · Answer

(1) Increase in Fraud - costs insurers money

(2) Easy to sue insurer (relatively unregulated insurance environment) - costs insurers money. A very regulated environment can also be costly (like Massachusetts or Rhode Island), however it's about whether or not regulation favors insurers. In Florida's case it doesn't.

(3) Costliest state to write home business in - costs insurers money. More costly than Texas's hail. The number and severity of hurricanes in Florida has been increasing over the past decade. If it wasn't for the California wildfires, Florida would easily take the top spot. The Insurance Institute has some good information here: https://www.iii.org/fact-stati...

RE your California home, that's likely because an earthquake rider is attached to your insurance policy. Flood insurance is a federally underwritten insurance policy so it wouldn't affect your insurer on that front.

Courtney Fricke · Answer

I am finding similar issues in Louisiana. Tough underwriting, inspections post binding have been rough, multiple companies going bankrupt, and the prices are through the roof. Due to multiple issues stated above, my insurance lady (previous 20+ years in underwriting) has told me to buckle up for a few years of this before we see much changing. Making some adjustments as needed to make due with these hurdles.

Jason Bott · Answer

Just to add to the problems in FL, this came in this week;

The Florida marketplace continues to deteriorate. Another carrier has been forced into liquidation.  There will be a special session of the Florida legislature starting May 23 to hopefully address this situation.

Lighthouse Property Insurance Corporation was ordered into liquidation by the 19th Judicial Circuit Court in the parish of East Baton Rouge, Louisiana, as of April 28, 2022. All policies will be cancelled effective May 28, 2022. For more information, see the order.

To support the short time needed to provide coverage for these risks, Citizens has eased some underwriting time frames.

Ben Guttman · Answer

The BILLION dollar Settlement for Surfside is probably playing a role as well, but yes the weather (hurricanes) and legal shenanigans have snowballed into this current market. Glad to try and help.

Derick Bonsu · Answer

Call Shawndra Willis with WeInsure (904) 428-1051

Chaz Stan · Answer

Try Kin insurance https://www.kin.com/. I’ve got them on a couple of mine.

What is going on with insurance in FL?!?

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