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View Full Version : Tristan, Pipe Fitter and other Floridians



High C
03-16-2007, 05:25 PM
Have you been personally affected by the problems with homeowners insurance in Florida?

You're a year or two ahead of Louisiana and Mississippi dealing with this problem, so I'm looking for insight.

As I understand it, when the scoundrels at the insurance companies dropped wind coverage, Florida pretty much told them to hit the bricks and everyone went into the state's disaster pool.

How's that working out?

Tristan
03-16-2007, 05:58 PM
Hi-C, We have State Farm. I've had to opt for a $20,000 deductible on hurricane damage, as the coverage cost just about doubled. I hate State Farm but they seem to be the only big company covering here in Fla. I don't know about the disaster pool, have my doubts about it. Maybe someone else will give me some insight.

Concordia...41
03-16-2007, 07:19 PM
I have Allstate. They went up quite a bit and as it's all bundled with my mortgage payment, so that and the usual property tax increase bumped my mortgage up almost $300 a month.

It wasn't fun, but thankfully I'm at a place in my life where I just had to work a little harder - spend a little wiser. I feel bad for folks just starting out, young familes, etc. I don't know how they made it.

What are we now, like 18 months later (after the increases hit)? Not without some strongarming from Tallahassee, but all the major providers seem to be announcing big reductions in rates.

I called my mortgage company a couple weeks ago and pointed out that they were escrowing a boat-load of money they weren't going to need and they came off $179 a month. :)

Somebody correct me if I'm wrong, but I think the disaster pool is primarily for the high-risk coastal properties that can't get insurance any where else.

I can see the Intercoastal from my back yard, and if we get a direct hit we're all gone - coastal, river front, Intercoastal, it's not going to matter, but I actually added flood coverage to my policy for something like $250 a year.

High C
03-16-2007, 09:54 PM
Thanks, you two.

In LA, the disaster pool, or the "Fair Plan" as they call it :rolleyes: , is for folks who can't otherwise get homeowners insurance. That's now pretty much everyone south of I-10 throughout the state who bought their homes within the last three years. Policies older than three years are protected by state law (not from increases, just from being dropped), so any new sales end up in the Fair Plan as the regular companies simply will nor write new business near the coast. Fair Plan rates are typically about triple what retail insurance used to cost. Retail insurance is also up 50% to 100%. Much more for commercial insurance.

Needless to say, this has really bottled up the real estate market. Tax and insurance escrow payments can now equal or exceed principal and interest on a typical home mortgage. :eek:

I'm pleased to hear that rates are easing in Florida. I know FL played hardball with the insurance companies. Sounds like it was a good call. Louisiana's Governor has been reluctant to be as tough as was Florida for fear of running the remaining companies out of the state.