after the storms comes the reckoning: Home Insurance Rates Surge in Florida, Elsewhere

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Much has been written about the rise in insurance rates in parts of the country plagued by hurricanes, powerful storms and hail. Bad news — but it’s worse than expected, especially in hard-hit Florida.

According to The Conversation, “When home insurance averages $2,377 a year nationally, and $11,000 per year in Florida, this is a blow to many people. Despite these rising rates, Jacques de Vaucleroy, chairman of the board of reinsurance giant Swiss Re, believes U.S. insurance is still priced too low to fully cover the risks.” In other words, expect that rates will hockey-stick soon, and more homes won’t be insurable.

The reason behind the rate hikes is simple: “In 2023, insurers lost money on homeowner coverage in 18 states,” the report adds. And as dangerous weather spreads, the insurance problem will spread as well. In the last few years, for instance, insurance companies have upped rates in Iowa, the result of a proliferation of tornadoes. As of October 31, there were 1,515 tornadoes in the U.S., a record. Meanwhile, Hurricanes Helene and Milton caused at least 100 deaths and billions of dollars of destruction.

California crisis
Across the country, the cost of home insurance is nearly as high in California as hard-areas in the east. In July, for instance, State Farm asked regulators for a record increase in America’s most populated state, with the main reasons being floods and wildfires, weather events at both ends of the weather risk spectrum.

With the high costs, Americans are increasingly giving up home insurance completely or having insurers withdraw it. One consequence of this is that in areas where people do not have insurance, home prices tend to drop.