Florida Insurance rates are skyrocketing 100% and more at renewal

[Ryan Hamaker]

Just an FYI to investors currently in or looking to invest in Florida. Multiple hazard insurance companies have filed bankruptcy recently. This is putting enormous pressure on the few insurers left to raise rates just to stay solvent. On a 3/1 SFR I own in Tampa, my current hazard insurance rate is $965. I just received my renewal letter with the new rate of $2453. Needless to say, these increases wreak havoc on investor pro formas.

I had a lengthy discussion with my insurance agent who is searching for a new policy but the short of it is that insurance claim fraud has never been higher in the state of Florida.  So if you're looking to make a purchase, do your due diligence and contact an insurance agent before you close and get stuck with a negative cash flowing investment.