I live in Florida and a ton of people are moving here. Even so, there are a ton of property insurance companies pulling out of the state. It makes no sense to me.
In: Economics
Florida is incredibly vulnerable to hurricanes. Hurricanes cause tens of billions of dollars in damage. Forecasting suggests this will be a higher than typical hurricane season, and storms in general are getting more severe with effects of climate change. In addition to more liklihood of claims, building material costs, labor/trades costs are higher meaning that rebuilding, replacement, etc. will cost more for customers who experience losses. Insurance companies are not charities, so if they’ll have to pay out more claims, they’ll charge more in insurance premiums to cover those costs. Add in factors like risks/liability to improperly maintained condo buildings and the effects of salt water, etc. (eg. the condo collapse a couple years ago) and Florida is a place with high risks to property insurers.
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