Why are so many insurance companies pulling out of providing coverage in Florida?
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Insurance companies make money by charging premiums, and lose money when they pay out claims. With rising oceans and warmer waters, which directly leads to stronger hurricanes. The companies know that more and more frequent payouts are coming, so they either have to raise premiums to unaffordable levels, or pull out. More and more, they’re pulling out.
And as for the homeowners in Florida, state-run options may be plausible for a time, but that piggy bank will soon dry up, and voters won’t want to pay up to help some millionaire rebuild his house for the third time in five years.
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