Enter your ZIP code:

Florida’s Home Insurance Headache

Hurricane evacuation sign

For too long, politics trumped common sense in the Florida property insurance market.

A history of short-sighted policies has left many Floridians with no desirable options.

by Jeb Foster

Florida’s officials have always advanced politically by promising to halt or even lower insurance rates. Problem is, those artificially low rates will likely end up hurting residents in the future. Citizens, the state-run insurer, provides a perfect example of the perils of ill-considered insurance policy.

Citizens has had a mandatory rate freeze since 2007. While this has made customers happy, the freeze has starved the insurer of the surplus it needs if a storm should hit. Right now, Citizens has $450 billion in exposure yet only $3 billion in surplus.

"Any kind of significant storm event would, or could, wipe that out in a few short hours," James Malone, chairman of Citizens, said in February 2009.

So, essentially, we have an insurer that doesn’t have a rainy day fund, which makes for a pretty lousy insurer.

Florida’s elected officials have slowly begun to realize they can’t keep demagoging on insurance rates—they’ve got allow insurers to raise them or else leave their constituents vulnerable to storms, which will likely continue to grow in intensity and frequency as ocean temps rise due to climate change.

Unfortunately, this realization has come at the worst possible time—during an economic downturn. This, sadly, is the price ignoring a problem.

It gets worse. State Farm, one of the largest property insurers in the state, is pulling up stakes because insurance regulators told them they couldn’t raise rates by 45 percent. Many of their customers will likely look to insure their homes with Citizens, which is, as we’ve established, woefully undercapitalized.

And the question remains—will other insurers follow State Farm’s lead?


Free Car Insurance Quotes!  
Free Home Insurance Quotes!  
Free Health Insurance Quotes!  
Free Life Insurance Quotes!  
List of Articles
No. Subject Author Views
55 Wyoming Home Insurance youcomparequotes 6532
54 Wisconsin Home Insurance youcomparequotes 6815
53 West Virginia Homeowners Insurance youcomparequotes 6402
52 Washington, D.C. Home Insurance youcomparequotes 8036
51 Washington Home Insurance youcomparequotes 6122
50 Virginia Home Insurance youcomparequotes 6344
49 Vermont Homeowners Insurance youcomparequotes 6763
48 Utah Homeowners Insurance youcomparequotes 6102
47 Texas Home Insurance: Not Fun, Not Hip But Oh-So Important youcomparequotes 7084
46 Texas Home Insurance Quotes youcomparequotes 6573
45 Tennessee Homeowners Insurance youcomparequotes 8192
44 South Dakota Homeowners Insurance youcomparequotes 6829
43 South Carolina Homeowners Insurance youcomparequotes 6147
42 Rhode Island Homeowners Insurance youcomparequotes 6353
41 Pennsylvania Home Insurance Quotes youcomparequotes 6545
40 Oregon Home Insurance Quotes youcomparequotes 12682
39 Oklahoma Homeowners Insurance youcomparequotes 6573
38 Ohio Home Insurance Quotes youcomparequotes 6852
37 North Dakota Homeowners Insurance youcomparequotes 6295
36 North Dakota Home Insurance youcomparequotes 6186
35 North Carolina Homeowners Insurance youcomparequotes 10640
34 New York Home Insurance Quotes youcomparequotes 6857
33 New Mexico Homeowners Insurance youcomparequotes 6677
32 New Jersey Home Insurance youcomparequotes 6242
31 New Hampshire Home Insurance youcomparequotes 6321
30 Nevada Home Insurance youcomparequotes 6455
29 Nebraska Home Insurance youcomparequotes 6298
28 Montana Home Insurance youcomparequotes 6657
27 Missouri Home Insurance Quotes youcomparequotes 6337
26 Mississippi Home Insurance youcomparequotes 6420
25 Minnesota Home Insurance Quotes youcomparequotes 6582
24 Michigan Home Insurance Quotes youcomparequotes 6681
23 Maryland Home Insurance youcomparequotes 6582
22 Maine Homeowners Insurance youcomparequotes 6393
21 Louisiana Homeowners Insurance youcomparequotes 6717
20 Kentucky Homeowners Insurance youcomparequotes 6189
19 Kentucky Home Insurance youcomparequotes 6543
18 Kansas Homeowners Insurance youcomparequotes 6770
17 Iowa Homeowners Insurance youcomparequotes 6225
16 Indiana Homeowners Insurance youcomparequotes 6584
15 Illinois Home Insurance Quotes youcomparequotes 7254
14 Idaho Home Insurance youcomparequotes 6387
13 Hawaii Home Insurance youcomparequotes 6392
12 Georgia Home Insurance youcomparequotes 6550
» Florida’s Home Insurance Headache youcomparequotes 7742
10 Florida Home Insurance Quotes youcomparequotes 6509
9 Delaware Home Insurance youcomparequotes 6076
8 Connecticut Homeowners Insurance youcomparequotes 6373
7 Colorado Home Insurance Information: Protecting Your Personal Rocky Mountain Paradise youcomparequotes 10938
6 Colorado Home Insurance Information youcomparequotes 6983
5 California Home Insurance youcomparequotes 6584
4 Arkansas Home Insurance youcomparequotes 6562
3 Arizona Home Insurance Quotes youcomparequotes 7624
2 Alaska Homeowners Insurance youcomparequotes 6273
1 Alabama Homeowners Insurance youcomparequotes 6203
XE Login