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My assessment as a 51 year old native Floridian is that, "a lot of retirees who bought beach houses will be disappointed" is fundamental to the problem. Our eco
by mcculley 4y ago
My assessment as a 51 year old native Floridian is that, "a lot of retirees who bought beach houses will be disappointed" is fundamental to the problem. Our economy is based on 30-year financial instruments. Largely nobody is incentivized to think ahead further than 30 years, especially retirees.
I am astounded when I see coastal properties sold knowing that they will be untenable in the long term.
- toomuchtodo 4y agoThe insurance market is fixing the problem. Citizens Insurance, the high risk pool, is slowly rolling out a flood insurance requirement across all policyholders. You can either afford insurance, or you will self insure. If you can’t afford the insurance, you won’t be able to carry a mortgage. Arguably, the system is correcting the previously mispriced risk. https://www.citizensfla.com/-/20230127-flood-insurance-requirements-for-renewal-eligibility https://www.citizensfla.com/-/20230127-flood-insurance-requi...
- mcculley 4y agoI am very familiar with Citizens and while I am pleased to see reform of it, I don't see how the changes made end up with correctly priced risk. The continued existence of Citizens is proof that the risk is not priced correctly or private insurers would be willing to sell policies. But the mispriced risk is only part of the problem. Even if the risk were correctly priced, I do not believe that many properties being sold today will be standing in 30 years without significant extra investment. It is not just the private properties. Roads and other infrastructure are built in Florida with no apparent long term plan.