It’s like waking up from a bad dream and realizing it was only a dream and everything is just fine. However, the Florida insurance nightmare isn’t just a bad dream, it’s the new reality, and we keep taking hits.
The latest is Farmers Insurance Company pulling out of Florida, leaving 100,000 policyholders high and dry. They will no longer be writing policies for homeowners, auto and umbrella in the state. They point to storm risk and increased litigation forcing them to reimburse more funds than they feel comfortable doing, meaning they’re not making enough money selling insurance in the state of Florida.
We can’t do anything about the storms and unless Farmers is living in a different dimension, the state has always had the risk of storms. The litigation issue was addressed by the governor and Florida Legislature this past year hoping to reduce the number of lawsuits relative to claims.
As always, homeowners live in fear each renewal that their insurance will be canceled or will go up too much. You always have the option of shopping around before your next renewal in the event you do get canceled, but be careful.
Make sure the company or insurance broker you’re talking to is a real person. There is a National Association of Insurance Commissioners that can help you verify who you’re talking to. My advice, especially for homeowners who live near the water, is to try as hard as possible firstly not to get canceled and if you get an increase, bite the bullet and pay it before shopping for a lower rate.
You can make your home more insurable by changing things that will make the property less risky to insure. Fire alarms and security systems can get you several percentage points off your premium. Hurricane shutters, hurricane-proof windows and fire-resistant siding also will help.
But the elephant in the room in Florida is the age and condition of your roof. Be prepared to get a cancellation or requirement to replace the roof if it is anywhere over 25 years of age, even if there are no leaks and no claims against it. This is also true if you live in a condominium complex where the roofs are the responsibility of the association. Condo owners are getting hit all over the place with special assessments to replace roofs in order to get insurance.
Time to report the June sales statistics in Manatee County released by the Realtor Association of Sarasota and Manatee.
Single-family homes closed 17.7% more properties from last June. The median sale price was $525,000, down 4.5% from last year, and the average sale price was $678,994, down 1.7% from last year. The time to contract was 37 days compared to six days last year and the month’s supply of available properties is 2.8 months compared to 1.8 months last year.
Condos closed 12.1% more properties from last June. The median sale price was up 3.8% to $370,000, and the average sale price was up 6.6% to $471,003. The time to contract was 34 days compared to seven days last year and the month’s supply of available properties was 3.4 months compared to 1.5 months last year.
Sales are up in both areas of the residential market, keeping in mind most of these transactions were booked at least 30 days ago before the slower season really kicked in. Nevertheless, the news release from the Realtor Association states, “The residential market in Manatee County continues to thrive with strong buyer activity.”
Insurance nightmares or not, Florida is still a great state to live in. Hopefully, we’ll have a moderate storm season and improved litigation laws that will give insurers a reason to come back to Florida. That would be a happy dream
