Recent studies and reports highlight a growing concern in the Florida insurance market, with a focus on the property and construction insurance sectors. Researchers from Harvard, Columbia, and the Federal Reserve Board have concluded that the market is saturated with 'low quality' insurance companies, many of which have financial ratings below the standards typically required by Fannie Mae and Freddie Mac for backing mortgaged homes. This situation is exacerbated by the expected spike in home insurance rates due to the hurricane and wildfire seasons. The Miami Herald notes that Florida's property insurance struggles might be worse than previously thought, with a predicted 7% hike in home insurance costs for 2024. Additionally, the cost of construction insurance is causing developers to second-guess investments in the state. U.S. Treasury officials have discussed expanding protections for homeowners in light of the extreme weather conditions threatening the affordability and availability of home insurance across the country.
Florida home insurance costs to hike 7% in 2024, report predicts https://t.co/05sKZQofFO
Extreme weather conditions across the U.S. threaten homeowners’ ability to find & maintain affordable home insurance. @USTreasury officials joined our California Democratic Congressional Delegation meeting to discuss how we can work together to expand protections for homeowners. https://t.co/rGplacj8Fv
.@tampabaytimes: "The vast majority of small insurers operating in Florida are considered so financially weak that they wouldn’t typically meet federal guidelines allowing them to back mortgaged homes." @lmower3 https://t.co/4xjyJziJg8
Op-ed: The cost of construction insurance in #Florida is having developers second-guess their willingness to invest in the Sunshine State https://t.co/Os9LP44527
The vast majority of small insurers operating in #Florida are so financially weak that they wouldn’t typically meet federal guidelines allowing them to back mortgaged homes. https://t.co/EL2sm1F04x via @lmower3
Florida’s property insurance struggles are no secret. It might be worse than you think https://t.co/TbifNWcFIE
NEW: Florida's insurance market is full of "low quality" companies with financial ratings that wouldn't normally pass muster with Fannie/Freddie. That's the conclusion by researchers at Harvard, Columbia and the Federal Reserve Board: https://t.co/9vulyeP0Zv
Florida insurance market full of ‘low quality’ companies, study finds - by @TB_Times https://t.co/g0mL11oPgJ
Florida insurance market full of ‘low quality’ companies, study finds https://t.co/Gm3Feqx99w https://t.co/uOJwcgfblf
Hurricane, wildfire seasons expected to lead to spike in home insurance rates https://t.co/2v00ucqxd8