Homeowner's insurance disaster coverage

Between the wildfires and the mega storms, the insurance companies are taking a hit. It's getting more expensive, or even impossible to get coverage in some locations.

It's been particularly difficult here in Florida.

In July, Farmers Insurance became the fourth company to exit Florida in the last year, affecting some 100,000 homeowners. There are 14 other insurers failing.

Florida Chief Financial Officer Jimmy Patronis blamed Farmers’ “wokeness” for leaving Florida. Gov. Ron DeSantis said insurance companies will come back — after the hurricane season.

I don't have flood insurance. My wife said that it wouldn't cover us if rainwater backed up into the garage or house, since she understands that the coverage would only be for a body of water like a lake or river rising. We're not near any of those.

In July, Farmers Insurance became the fourth company to exit Florida in the last year, affecting some 100,000 homeowners. There are 14 other insurers failing.

They doing the math and decided it's not profitable to cover certain areas, sounds like free market capitalism.  Will see if anyone else comes in to cover but likely at super high rates. They're finally getting enough data to do this on the healthcare side too. Will be interesting how it plays out.

I totally understand this. I don't have a problem with it, even though I'll likely be impacted. My issue is with them taking premiums for years and simply not paying out when the time comes. It's amazing how many people I have talked to that don't have a home to go to, or live in homes with failing tarps on their roofs a year after Ian. 
but we need to remember, the insurance companies want these claims paid out quickly, and they have our best interest at heart lol. 

The Florida insurance laws make it easy to sue an insurance company to get new parts for "storm damage".  We have most of the home insurance based litigation in the country.  Our legislature is as dysfunctional as you can imagine so I don't see this problem getting fixed.

My dad's house had coverage bumped from $4k to $17k per year as his insurance company tried to exit the market.  Now he is on Citizens because he couldn't get coverage from anyone else.

I don't blame them for leaving after Ian last year.  That was a once in a lifetime flooding event for the Orlando area.  Every apartment complex in East Orlando had a total loss on the first floor and everything in the parking lot.

In reply to Floating Doc (Forum Supporter) :

I don't have flood insurance. My wife said that it wouldn't cover us if rainwater backed up into the garage or house, since she understands that the coverage would only be for a body of water like a lake or river rising. We're not near any of those.

I am not in the insurance industry, but *I* think your wife is not correct.  

And yes, insurance in Florida sucks. Been here for almost 30 years and this last couple of years it has become a big problem. 

I mentioned before here that I was seriously considering paying off my house and self insuring. People thought I was nuts, but paying $10k+ for insurance a year is nuts. 

Heard yesterday that something like 15% of home owners in Florida are self-insuring (whether they want to or not).  We are also considering it.

What a coincidence!

I am self insuring my canoe.  I turn it over and let it fill with rainwater so it won't blow away. 
 

My niece in the New Orleans area just had her homeowner's insurance go up by 4 times.   

Katrina 18 years ago and Ida two years ago, insurance companies going bankrupt from the losses, and now the ones that are left have the choice of pulling out all together or setting the rates based upon risk analysis.