Five Major Hurricanes In Seven Years; FL Home Insurance Out Of Reach For Growing # Of Residents

[hatrack]

EDIT

In the last seven years Florida has weathered five major hurricanes. Michael, which made landfall in 2018 in the Panhandle, was the first category 5 hurricane to strike the continental United States since Andrew in 1992. Ian, in 2022, was the costliest hurricane in state history and third-costliest on record nationwide, after Katrina in 2005 and Harvey in 2017. Recent major Florida hurricanes also include Irma in 2017, Nicole in 2022 and Idalia in 2023. If the disasters sharpened Floridians’ resolve, in the immediate aftermath, to build back stronger and better, another crisis may be causing some to rethink where they live and the rising risk as the global climate warms.

EDIT

The study found that the most overvalued properties are concentrated in coastal counties where there are no flood risk disclosure laws and where there is less personal concern about climate change. Much of the overvaluation is driven by properties situated outside of the 100-year flood zones designed by the Federal Emergency Management Agency. Low-income households especially are in danger of losing home equity, potentially leading to wider wealth gaps. In Florida properties are overvalued by more than $50 billion, according to the study. The unpriced risk is important for many reasons. Municipalities that rely on property tax revenue may be vulnerable to potential shortfalls, the study says. The National Climate Assessment pointed out last year that the overvaluation of coastal properties makes it difficult to move people out of harm’s way, because of the limited amount of compensation available through flood insurance and federal flood disaster assistance programs.

“Florida is one of the riskiest places from a climate impact standpoint that you can live in,” said Rob Moore, director of the flooding solutions team at the Natural Resources Defense Council. “One only needs to look through a few years of front pages to see how many major hurricanes have struck this state, and that definitely had an impact on how both private insurers and insurers in the public realm are looking at risk and pricing it in the state of Florida.” “We’re so far behind in regard to pricing in the climate. That’s why we’re seeing these big (insurance) spikes in places like Florida and California and Louisiana,” said Jeremy Porter, head of climate implications research at the First Street Foundation. “It’s the first mechanism to start to price climate into the housing market.”

EDIT

Most notably, the government-backed National Flood Insurance Program has raised rates nationwide under its new pricing methodology, Risk Rating 2.0. The change represents a shift away from the subsidization that had helped transfer risk away from homeowners, toward premiums that are more commensurate with risk. In 12 states, flood insurance premiums have doubled, although no part of the country has been untouched, with rates in Florida jumping by 231 percent, Kentucky by 207 percent, Louisiana by 234 percent, South Dakota by 207 percent and West Virginia by 272 percent, according to the First Street Foundation study. This appears to have led some homeowners to forgo insurance altogether, as the number of policies in force has dropped by 21 percent to 4.7 million. “That does price in climate risk in a way that it didn’t for the last 50 years,” Porter said.

EDIT

https://insideclimatenews.org/news/06032024/florida-skyrocketing-insurance-rates/

[PJMcK]

1. We're looking for a warm weather location to have a "snowbird" home

Florida is out for political and climate reasons. (Favorable tax laws, however.)

Gulf Coast, same reasons.

Arizona, maybe.

Costa Rica and Panama are attractive economically but their politics are not entirely stable, (well, neither are those here in the U.S.).

[RSherman]

2. Snowbird home

A friend and I used to visit FL every year: Ocala, Ft. Myers, Sanibel and Captiva. A few years ago, he bought a home right on a canal in Bonita Springs. I wanted to retire there with him, but he's back in NY with health problems. FL does not seem attractive anymore due to politics.

My father, brother and his family, and an uncle all live in AZ. My brother moved there from NY around 30 years ago because his baby had some breathing problems and that's what the Dr. suggested. Every year that I visit my brother, he points out places he and his son rode ATVs. It's all grown up now with housing, businesses, etc. My father called a few days ago and recounted that doctors used to give this advice. No more. Air quality is bad (he's in Phoenix and my brother is nearby in Anthem). Everything is built up and there are 4 lane highways. Last time I visited, there was a bad accident just about daily. My father has loved living out there but recently expressed that if he wasn't 87, he would consider moving back here. And, the water situation is bad and getting worse.

My uncle is in Meyer and has lived in Prescott. So, Northern parts of AZ might be ok.

[marybourg]

3. What kind of situation is your father

dealing with regarding water?

[RSherman]

4. Dad's water

He just said he's concerned about it. I just read an NPR article with a quote from the Gov. that much of AZ's water is sort of promised ahead of time.

"The water is overallocated in Arizona and years ago they didn't think the river would ever stop flowing but guess what, it just might and we need to be prepared for that."

This is from an NPR Feb. 2023 article quoting the Gov.

[marybourg]

5. OK, thanx.

I live in the PHX metro also, and have not heard of anyone, except that shady development outside of Scottsdale, having any current problems. Thought I missed something.

30+ years ago, when we first moved here, my senior development was out in the boonies, with no one and nothing else around. Now we are in the midst of typical American suburban sprawl. We lived through the exact same thing on Long Island many decades ago. But now, in my old age, I’m grateful for the stores, medical offices, government offices, social services, etc. nearby. And oh, the weather (most of the year.)