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I guess people might flock to Florida because it's warm there and it doesn't have an income tax? I can see out of state buyers get what looks like a house they
by rdtsc 3y ago
I guess people might flock to Florida because it's warm there and it doesn't have an income tax? I can see out of state buyers get what looks like a house they can afford, only to find out they are on the hook for a huge insurance bill every month.
If insurance companies exit from an area, what happens to mortgages then in that area? Banks like to protect their mortgage properties and force people to buy insurance, even escrow the insurance to make sure it's always paid.
- acdha 3y agoThe state of Florida is likely going to end up as the insurer of last resort, which causes some interesting political tensions because it means that a lot of working-class people are going to be subsidizing the well-connected people who are wealthy enough to own the waterfront property which is most at risk from flooding.
- snowwrestler 3y agoThis is the beauty of “forever” cultural wedge issues: if you can get people to vote you into office based on transgender rights or abortion, then they won’t ever vote you out of office, even if your decisions cost them tons of money.
- sagarm 3y agoThat's already happening: https://www.miamiherald.com/news/business/article270752777.html https://www.miamiherald.com/news/business/article270752777.h...
- acdha 3y agoYes - I’m expecting it to get brutal after the next major storm or two. We had family in Miami and before they moved they were looking at some hefty increases just due to the last few rounds of flooding. More frequent, more widespread is really going to reset actuarial models.
- WarOnPrivacy 3y ago> I can see out of state buyers get what looks like a house they can afford, only to find out they are on the hook for a huge insurance bill every month. While true, the influx of move-ins also played a meaningful part in raising insurance costs. The sudden spike of buyers with NY & CA sized dollars massively inflated FL home prices. This further stretched tight JIT construction inventories which further drove up home replacement/repair costs. What eases the above? More building. Where's the building happening? All over but with little regard to historical risk - whether an area sees 30 landfalls in 150 years or maybe one.
- civilitty 3y agoFlorida is a battleground state so the Federal government will step in at the taxpayers' expense as usual: https://en.wikipedia.org/wiki/National_Flood_Insurance_Program https://en.wikipedia.org/wiki/National_Flood_Insurance_Progr...