Flordia’s Rich To Get Better Home Insurance
For many years, people with homes valued over $700,000 could not get the Flordia home insurance underwritten by the state–the Citizens Property Insurance Corporation. The deal was slightly different in Miami-Dade and Monroe Counties, where the figure was $1 million. The picture has changed in favor of the wealthy. According to WCJB, on February 13, “A Florida Senate panel Tuesday approved a bill that would allow residents with homes valued at more than $700 thousand to get coverage from the state’s Citizens Property Insurance Corporation.” Of course, the governor must sign the law if it is passed. Nevertheless, as more violent storms hit Florida, more often, people who cannot get insurance because of this now may be able to.
Florida Problem —State Is Sinking Fast
Florida Real Estate Problem —Miami and Tampa
Citizens is known as a “last resort” insurer. Intelligent insurance company executive do not want their earnings decimated by insuring areas reasonably likely to be damaged by massive hurricanes. The rich may not be so rich, according to one state politician. State Senator Ed Hooper, who sponsored the bills, said. “Inflation has run many average, middle-class homes over $700,000. There is difficulty placing these risks in the admitted market.”
Hooper may be right, according to S&P Case-Shiller, which tracks home prices nationwide. Tampa and Miami have had significant increases in the price of residential real estate. This, in turn, is because hundreds of thousands of people have relocated to Florida in the last decade. Now, the middle class or rich may be able to insure uninsurable houses.
