Why are so many insurance companies pulling out of providing coverage in Florida?
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For a long time, the cost of insuring homes has increased but states have wanted to protect homeowners from having to pay the real costs, and passed laws limiting the amount of money insurance companies could charge in premiums. This created a completely unsustainable market where the insurers were actually losing a lot of money. Since companies, for the most part, exist to create money, they did the logical thing and moved out of state.
In the end, the real problem comes down to too many people building too many homes in places that are dangerous. To fix it, a sustainability model needs to be in place. If you live in a hurricane zone, rather than keep rebuilding homes, people should be incentivized to move into areas where that isn’t a problem. This will never happen, though, because many people see it as their right to live wherever they want, regardless of the consequences.
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