Home Insurance Is So High in This Florida Town, Residents Are Leaving

In West Palm Beach’s Flamingo Park neighborhood, some homeowners are dropping insurance, and others who can’t are selling

By Deborah Acosta of The WSJ. Excerpts:

"Florida’s explosion in insurance premiums threatens to ground the state’s highflying housing market. Florida home prices soared more than 60% since 2019"

"Home-insurance costs are rising everywhere, but they are rising especially fast in Florida where premiums have tripled in the past five years. Some premiums have increased by about nine times what they were last year"

"A combination of extreme weather events, higher costs to rebuild and a rise in litigation has put the state’s insurance industry into crisis. Multiple insurers have pulled out of the state altogether. Gov. Ron DeSantis last year signed a bill meant to reduce some of the litigation and bring insurance costs down, but many in the industry say it isn’t enough.

The surge in insurance premiums has led many people who own their homes outright to drop insurance. While some of these homeowners without mortgages have gotten rid of all their insurance, others have dropped only their wind coverage, which pays off after a hurricane and where the prices have risen the fastest. Newer homes generally have experienced smaller run-ups in insurance costs."

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