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Home Insurance is out of control: Can it get Worse?

Real Estate Agent with Exit Realty Properties


It was not long ago that home insurance across the state of Florida was supposed to be cut by 33%. What happened to that bill that was signed and approved by the state? Did I miss the "No thank you train or something?. So far, instead of this happening, home owners have been dropped citing "too much exposure", some have seen significant increases to their insurance bills and some have just stayed the same.

October/November 2005 was the last heavy hurricane here in Florida and we have been lucky for the past 2.5 years so why was it that I received a funny looking letter form my insurance company a few days ago stating the following:?"Starting with the next premium period, your policy will add a mandatory tropical cyclone deductible in an amount equal to 3% of your dwelling protection coverage limit. We know that advance notice does not make it any easier...". Have they gone crazy? Who is actually demanding these and allowing insurance companies to treat people this way? This daylight robbery continues. This is no longer a risk to protecting our homes but another way to line someone's pocket.

This on top of the "bundle" adding about about 5-10 cents on every service on your phone bills, all the hidden charges on your cellphone bills, gas at th epump is unreal and just basic groceries like milk now average about $4.89 (BTW, I got to CVS and it is still 3.99 but I heard Cosco is even cheaper).

Shortly after wilma, we lost 72 tiles and we were told we couldn't put in a claim cos we didn't qualify. That year,our insurance bill was $4500. It cost us $3000 to replace those tiles, deal with fly-by-night roofers and attorneys fees. Do the maths. The next year, they dropped us citing "too much exposure". Whilst most have stopped wriitng in the state, some have moved out completely. I remember paying $700 a year insurance for a 4/2/ with basement 2400 sq foot home in PA just 2 years ago. The smallest home in Florida does not even pay close to this amount.

Where do we go from here?

Is there a green light at the end of this tunnel or is this  a continuous on-going train wreck?

Afie Makinde

Exit Realty Properties