Rising home insurance costs are worrying, Tallahassee reports

As a contractor in Florida, I continue to worry about the future of our economy. Yes, we’re hot in almost every Florida market right now, and developers, home builders, and brokers make big bucks. But Florida’s real estate market has always been in a boom-and-bust cycle, and factors come into play that can make us veterans nervous when we see the market overheating.

One of the problems that is making itself ugly again is the rising costs and availability of insurance for homes and investment properties. There are a number of reasons for this, but one of the most important is Florida’s permissive process system. This system continues to be influenced by outdated laws and loopholes. Since many attorneys are able to sue for bad faith without any restrictions or guidelines on what is bad faith, insurance companies will cover this lack of predictability with higher insurance costs. In essence, the formula is as follows: the easier it is for someone to sue for an outcome without specifying any guidelines, the higher the insurance costs for everyone.

Why does this affect me or anyone else in the real estate industry?

Simple. Interest rates are at an all-time low. But with property rates now hitting all-time highs and with the prospect of spike still higher, we could fuel our own market long before we need to. We need our legislator to act.

Sam Elliot
Sam Elliott construction
Tallahassee / South Georgia
Submitted on July 28, 2021

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