Is Hurricane Rebuilding Only Available To Rich People in Florida and Is It Still Worth Retiring There?
Written by
Vance Cariaga
Edited by
Maria Concepcion
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Florida homeowners have enough to worry about with hurricanes rising in both frequency and severity. Now comes news that a pair of private insurers want to hike certain types of homeowners insurance by more than 50% — mainly because of the threat of losses due to storm damage. High insurance rates, coupled with expensive post-storm repairs, make it increasingly expensive to live in Florida, which could impact the state’s influx of retirees.
As News4JAX reported this week, the price to insure a home in the Sunshine State is the highest in the U.S. Insurance rates on some homes could push even higher if Castle Key Insurance, which Allstate owns, succeeds in convincing Florida’s Office of Insurance Regulation to approve a 54% average rate increase. Amica Mutual Insurance Company also filed for a 54.1% average rate increase.
Although those rate increases mainly apply to condos or vacation homes, they reflect growing concern over storm damage that has become so costly that, in many places, only the wealthy can afford to repair it.
A 2023 analysis by Angie’s List found that the national average to repair a home following extreme weather damage is $11,699 and typically ranges from a low of a low of $2,717 to a high of $20,850. But in some areas of Florida, the repair costs are much higher than that.
For example, Angie’s List estimated that the average cost of house repairs for storm and wind damage in Tampa is $32,300. That was far and away the highest cost of several cities analyzed. The average cost in other Gulf Coast cities was much lower, including Houston ($18,390) and New Orleans ($12,630).
Actual costs in Florida might be even higher once you factor in additional expenses for permitting, inspection/building fees, sales taxes and other items.
Needless to say, forking over more than $30,000 every time a storm does major damage is something many Floridians can’t afford. Some experts expect those storms to become more commonplace due to the effects of climate change.
Footing the bill for repairs is especially difficult for retirees who are forced to live on a fixed income. That might be one reason Florida’s lead as a top retirement destination has slipped in recent years.
According to a recent financial services company, Empower analysis, only two Florida cities rank among the 15 U.S. cities retirees most want to live in. That’s the same number of cities as Colorado.
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