Florida is no stranger to hurricanes and their devastating effects. But the cost of home insurance appears to be rising, and it’s an issue Ryan Serhant can’t ignore.
“That’s about $34 billion in losses. I think this is one of the biggest insurance crises we’re going to have in a very long time,” Serhant said. The CEO, founder and broker told Varney & Co. Friday.
Just over a week ago, Hurricane Helen made landfall in the Big Bend region of the Sunshine State after reaching winds of 140 mph and intensifying into a devastating Category 4 hurricane.
After landfall, millions of customers lost power in Florida, and power outages increased in Georgia and the Carolinas. FOX Weather reported that an “unsurvivable” storm surge caused parts of the south, killing more than 200 people.
Surprising statistics show how few Hellene victims in Appalachia had flood insurance
Since 1980, the United States has been affected by 378 weather events, resulting in at least $1 billion in economic damage, according to a report by the National Oceanic and Atmospheric Administration (NOAA).
Florida cities such as Hialeah, Miami, Fort Lauderdale, Hollywood, and West Palm Beach are all at high risk for natural disasters and pay the highest insurance premiums.
Household premium rates are expected to rise by nearly 20% from 2021 to 2023, and another 6% by the end of the year, according to data released by online insurance comparison site Insurify.
Homeowners in Florida and Louisiana face the highest tax rates in the nation, expected to rise by about 7% and 23%, respectively, next year.
“What’s even scarier to me is that only 2 to 4 percent of homeowners actually have flood insurance,” Serhant noted. “Getting insurance through the National Flood Insurance Program costs $1,000 a year on top of other costs. So this is a travesty.”
Additionally, Serhant said the U.S. real estate market remains stalled, even though the Federal Reserve has lowered benchmark interest rates to a range of 4.75% to 5%.
“Inventory is up and interest rates are at a 20-month low, but buyers are still on the sidelines. People are waiting. They want to know if a deal is going to go through,” the “Owning Manhattan” star explained. did.
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“No one wants to catch a falling knife, but no one wants to jump into a speeding car either.”
The average homeowners insurance premium in Florida is estimated to be about $11,000 a year, but Insurify said the proposed rate increases could push it closer to $12,000.
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FOX Weather’s Steven Yablonski, Emilee Speck, Scott Sistek and Andrew Wulfek contributed to this report.