Industry News

Home insurance rates pressure real estate

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Hurricane Andrew dealt a huge blow to the Florida home insurance market in 1992. The real estate market reeled. Insurers paid out an estimated $16 billion in claims, and home insurance rates in the state doubled in the decade following the disaster. Some coastal regions were hit with larger increases in that time. Flash forward to the 2004 hurricane season. Wave after wave of hurricanes and tropical storms swept across the state, wreaking widespread damage and causing an estimated $20 billion in insured losses. American Red Cross statistics found that about 315,100 residences in Florida were impacted by the four hurricanes in 2004, including single-family homes, mobile homes, apartments and condominiums. Sales of single-family homes dropped 23 percent in September, according to the Florida Association of Realtors, owing in part to the inability of prospective buyers to obtain homeowners' insurance when hurricanes strike or are threatening to strike. The state Realtors association, whi...