South Florida couple has trouble finding affordable insurance as rates rise ahead of hurricane season
FT. LAUDERDALE -- In a tight real estate market, Sheila and Olen Muir's biggest problem wasn't finding a home in popular east Ft. Lauderdale: It was finding insurance.
"There just weren't many options, other than Citizens," Olen said.
And Citizens, the state-backed insurance program, has been canceling policies and raising rates.
The Muirs' property insurance premium quote was $4,500 a year.
"Sticker shock: We were very surprised," Sheila said when she heard the estimate.
"We have a house on Cape Cod. It has a higher value and it is nearer to the ocean, but here we are paying four times as much for insurance" Olen said.
CBS Miami spoke to longtime property insurance agent Steve Brooks about the current state of the market.
"It is the worst property market I've ever seen in my entire career," Brooks explained without hesitation. "I never thought I would see the day I would write a policy on Key Biscayne for $165,000 a year for property insurance."
That's why Brooks said when it comes to getting, keeping and paying for property insurance in Florida, the picture is grim.
"If you are within two miles of the coast, on average it costs $12 to $15,000 a year for property insurance," Brooks said. "If you are more than 2 miles from the coast, the average is just under $10,000 a year."
And that doesn't include flood insurance, which FEMA said in light of the devastating historic April Broward flooding, largely in areas that weren't in a flood zone, it's insurance we all should consider getting.
"In South Florida, you are in a high-risk zone, or lie near one, so that's why it's important for everyone to have it in this part of the state," said FEMA spokesman John Mills.
The FEMA-backed flood insurance program is raising rates too. They no longer base it on flood maps, but on individual factors like the location of your home, rainfall levels and the cost to rebuild your home.
"We realize not everyone can afford it, and it's an issue we have been working on for years," Mills said.
The Muirs said in light of the recent flooding, they will consider getting flood insurance in the future.
"At some point, insurance could get cost-prohibitive (for us), unfortunately, people with less suffer more," Olen said.
Insurance agent Steve Brooks said the days of shopping for a better rate are over for the time being. He recommends reviewing your property insurance policy to make sure you have appropriate coverage and your deductible levels are affordable.
He also said there are other options for flood insurance. Check into private coverage which can be more flexible and affordable.
Brooks said recent Florida legislative action to reduce litigation that's blamed for the skyrocketing property insurance rates is beginning to have an impact. He said some new carriers are writing property insurance in Florida.
"There will be light at the end of the tunnel but it will take years," he said.