Rising Cost of Home Insurance a Concern

Rising Cost of Home Insurance a Concern

As a Florida contractor, I continue to be concerned about the future of our economy. Yes, we are red hot right now in almost every market in Florida, and developers, home-builders, and realtors are making plenty of money. But Florida’s real estate market has always been on a boom-and-bust cycle, and factors come into play that can create nervousness for us veterans when we see the market overheat.

One of the issues that is beginning to rear its ugly head again is the rising cost and availability of insurance for homes and investment properties. There a number of reasons for that, but one of the main ones is Florida’s free-wheeling litigation system. That system continues to be impacted by outdated laws and loopholes. As many attorneys are able to sue for bad faith without any kind of constraints or guidelines on what bad faith is, insurance companies will cover for that lack of predictability with higher costs for insurance. Essentially, the formula goes something like this: the easier it is for someone to sue without guidelines for an outcome equals higher insurance costs for everyone.

Why does this concern me or anyone else in the real estate industry?

Simple. Interest rates are at an all-time low. But with property insurance rates now moving to an all-time high with the prospect of going even higher, we may tank our own market long before we need to. We need our legislature to act.

Sam Elliot
Sam Elliott Construction
Tallahassee/South Georgia
Submitted July 28, 2021

Tallahassee Reports publishes letters to the editor for people to comment on a recent article and respond to the issues of the day. Letters should be between 250 -300 words and submitted via email to info@tallahasseereports.com. Include name and city.

3 Responses to "Rising Cost of Home Insurance a Concern"

  1. there is corruption in homeowners insurance and begins with the governor. my homeowners insurance doubled and the dept of ins advised the rate hike was approved. apparently the insurance company mismanaged their books and I have to pay for it. On 10/11/21 I sent an email to Loranne Ausley, governor, lt governor , alison tant for their opinion and if my florida retirement would double? of course no answer. I guess they are too busy counting their money.
    I also copied wctv, lol.

  2. I agree that there needs to be home insurance reform in Florida. Rates have gone up substantially and coverages are being removed at every renewal. Insurance companies are balking at paying roof claims and have issued a sliding scale depending on the age of the roof. It’s not just old roofs, but beginning with them that are two years old. Another problem seems to be with plumbing. They refuse to cover a house that has any galvanized plumbing. Many houses in Florida were built using these materials and it is very costly to have this plumbing removed completely.

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