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Agreed, but it seems like the people of FL want a populist who will prevent the companies from raising rates[0][1]. What happens then? It's rhetorical, since w

by speff 2y ago

Agreed, but it seems like the people of FL want a populist who will prevent the companies from raising rates[0][1]. What happens then? It's rhetorical, since we see in this post's article what happens. But my point is that something like this was more-or-less inevitable. [1]: https://www.flgov.com/eog/news/press/2025/governor-ron-desantis-announces-rate-reductions-miami-dade-county-auto-insurance https://www.flgov.com/eog/news/press/2025/governor-ron-desan... [2]: https://www.floridapeninsula.com/blog/florida-legislation-helping-to-reduce-runaway-home-insurance-premium-costs https://www.floridapeninsula.com/blog/florida-legislation-he...

toomuchtodo 2y ago
They want the socialism benefits wrapped in populist authoritarianism to appease their tribal and in group belief system. “The only moral benefits are my benefits.” With Florida climate risk accelerating, the new admin telling states FEMA is unnecessary, and ~15-20% of Florida homeowners going without property insurance due to cost, this will manifest in an unfortunate but entirely expected outcome: catastrophic economic loss at some point in the future with no recourse for the majority impacted (citizen homeowners and GSE investors alike).
- deleted 2y ago
  [deleted]
- tqi 2y ago
  Followed by a federal bailout, presumably
SaintGhurka 2y ago
>> What happens then? Same thing that's happening in CA. Insurers pull out of the state and non-renew policies. I'm sure it was satisfying to see the regulator stick it to the insurance companies, but you can't force them to write policies if they don't think it's worth it.
- deleted 2y ago
  [deleted]
- WillPostForFood 2y ago
  This is literally the opposite of what is happening. They are reforming laws to decrease costs, and have had new insurers enter the market. https://www.wptv.com/money/real-estate-news/9-new-insurers-for-florida-we-ask-when-will-relief-arrive https://www.wptv.com/money/real-estate-news/9-new-insurers-f...
quickthrowman 2y ago
> Agreed, but it seems like the people of FL want a populist who will prevent the companies from raising rates[0][1]. What happens then? Eventually, property values would be drastically reduced and home insurance would be more per year than the mortgage. If it’s 80% mortgage 20% insurance premiums now, maybe it will flip to something like 35%/65% mortgage/insurance with property values halved (or more). I’m ignoring the fact that the replacement cost of a home has little to do with the property value since most of that value is in the land, but the land would also be worth less. Regardless, a shitload of mortgages would be underwater, impacting both lenders and borrowers on a massive scale. Vast amounts of wealth would be destroyed. Or, property values remain the same and the poor have to leave Florida. This assumes there are enough people that can move to Florida and pay the same for a property with doubled or tripled insurance premiums, which is probably less likely than the first scenario I laid out.
- dsr_ 2y ago
  It's a little odd to say "vast amounts of wealth would be destroyed" without noting that this is the result of spending, borrowing and lending irrationally. It's not so much that the mortgages are underwater. It's that the houses are.
- SkiFire13 2y ago
  Wouldn't the insurance being twice the mortgage mean that in the time you pay your mortgage the house is expected to be destroyed and rebuilt twice?

by speff 2y ago

toomuchtodo 2y ago

They want the socialism benefits wrapped in populist authoritarianism to appease their tribal and in group belief system. “The only moral benefits are my benefits.” With Florida climate risk accelerating, the new admin telling states FEMA is unnecessary, and ~15-20% of Florida homeowners going without property insurance due to cost, this will manifest in an unfortunate but entirely expected outcome: catastrophic economic loss at some point in the future with no recourse for the majority impacted (citizen homeowners and GSE investors alike).

deleted 2y ago
[deleted]
tqi 2y ago
Followed by a federal bailout, presumably

SaintGhurka 2y ago

>> What happens then? Same thing that's happening in CA. Insurers pull out of the state and non-renew policies. I'm sure it was satisfying to see the regulator stick it to the insurance companies, but you can't force them to write policies if they don't think it's worth it.

deleted 2y ago
[deleted]
WillPostForFood 2y ago
This is literally the opposite of what is happening. They are reforming laws to decrease costs, and have had new insurers enter the market. https://www.wptv.com/money/real-estate-news/9-new-insurers-for-florida-we-ask-when-will-relief-arrive https://www.wptv.com/money/real-estate-news/9-new-insurers-f...

quickthrowman 2y ago

> Agreed, but it seems like the people of FL want a populist who will prevent the companies from raising rates[0][1]. What happens then? Eventually, property values would be drastically reduced and home insurance would be more per year than the mortgage. If it’s 80% mortgage 20% insurance premiums now, maybe it will flip to something like 35%/65% mortgage/insurance with property values halved (or more). I’m ignoring the fact that the replacement cost of a home has little to do with the property value since most of that value is in the land, but the land would also be worth less. Regardless, a shitload of mortgages would be underwater, impacting both lenders and borrowers on a massive scale. Vast amounts of wealth would be destroyed. Or, property values remain the same and the poor have to leave Florida. This assumes there are enough people that can move to Florida and pay the same for a property with doubled or tripled insurance premiums, which is probably less likely than the first scenario I laid out.

dsr_ 2y ago
It's a little odd to say "vast amounts of wealth would be destroyed" without noting that this is the result of spending, borrowing and lending irrationally. It's not so much that the mortgages are underwater. It's that the houses are.
SkiFire13 2y ago
Wouldn't the insurance being twice the mortgage mean that in the time you pay your mortgage the house is expected to be destroyed and rebuilt twice?