florida insurance crisis?

Question

what happens if no one is willing to offer flood insurance in florida anymore?

we already have a state run insurance of last resort, which is soon to be the biggest. but some people are paying 5000+ a yr JUST for flood insurance!! and there talking about doubling that...

Answer 1

FEMA

Answer 2

I recommend you this site to get quotes - INSURANCEGRADES.INFO- RE What is the best way to market homeowners insurance in Florida? I"m a relatively new property and casualty insurance agent in Florida. There is a perceived homeowners insurance crisis in Florida. Many of the big boys (ie Allstate, State Farm, Nationwide) are not writing any new business, policies are being nonrenewed, and if you're lucky enough to not get dropped, premiums are going up by more than 30% a year. Because of this, the average consumer "thinks" there's no alternative but pay what your Allstate, State Farm, or Nationwide agent gets you, which is usually a high rate with Citizens (the state run insurance company of last resort). However there ARE several small companies writing policies in Florida with great rates, but the captive agent of the big boys can't write them so people don't really know. I honestly haven't had a single lead who I couldn't save hundreds, maybe more than a thousand dollars a year. But I just don't know how to get the word out. Any ideas?

Answer 3

Flood insurance is provided through the National Flood Insurance Program a government agency that receives no funding from the government. They have to collect enough insurance to sponsor the program.

I went to the Flood conference this year and the NFIS said that last years hurricanes exceeded their reserves and they had to obtain loans to pay.

Basically flood rates are going to increase across the whole country and the flood zoning (identifies if you are required to have flood insurance) is going to be changed. Believe it or not most people in Louisiana were not required to have flood because of the levy system. The majority of the losses were flood related. Needless to say most people were uninsured and had total losses.

There will always be flood insurance, the question is will anyone be able to afford the cost that live in Florida!

Answer 4

I'm not worried about flood insurance in FL, because it's through the federal government, which means all the other states, and the US taxpayers in general, subsidize it.

You're better off worrying about windstorm coverage . . .

If there becomes an issue with it, people will stop buying property within 5 miles of the coast, because they won't be able to get a mortgage, and probably won't want to pay cash for something they can't insure. Which (musing now) would mean the property values would fall sharply.

Answer 5

The political hack above answered nothing.....

The government has a monopoly on flood insurance and the only private hands that deal with it are licensed brokers.

The Republican Party has nothing to do with and likely should vote to slowly eliminate the program as the NFIP only encourages development in high risk areas.

Not to worry though, even without flood insurance, the government has shown a propensity in low interest loans, grants and aid to help rebuild the same areas over and over again.

Answer 6

Actually, no one (as in insurance company) can offer flood insurance. Flood Insurance is offered ONLY through the federal government.

If you live in an area that is likely to be flooded you should pay more for flood insurance than those that live in the mountains. Those homeowners are more likely to have homes destroyed by fire or avalanche. Those homeowners have to pay for that coverage.

Answer 7

My guess is the government would have to step in and do something. I hate to see taxpayers be burdened with more taxes -- but it's the way of the world, right now.

Guessing.

Answer 8

Thank the Republican party. You voted them in, now deal with it. If you voted for someone else, my condolences. If you didn't vote, shame on you!