What is going on with HOI in FL

[Mitchell Catoe]

My wife and I are purchasing a STR in bay county. I got a great deal on the property which is why we moved forward, however I have recently been floored by HOI, the lowest quote I've gotten is 6k, is anybody having this issue. Any referrals would be helpful…….I also wonder if existing homeowners are seeing this influx across the board

[Randall Alan]

Quote from @Mitchell Catoe:

My wife and I are purchasing a STR in bay county. I got a great deal on the property which is why we moved forward, however I have recently been floored by HOI, the lowest quote I've gotten is 6k, is anybody having this issue. Any referrals would be helpful…….I also wonder if existing homeowners are seeing this influx across the board

Without knowing the value of your house the $6,000 value is out of context.  I can tell you for smaller rentals we pay $1,000 to $1,500 per year - those homes probably are worth $125-175,000.

We have medium size house in the $250-300,000 that run in the mid 2,000 per year for insurance, and up at the $700-800,000 range we pay around $5,000.   

If you aren’t  familiar with the Florida insurance situation, there’s been a huge amount of litigation from roofing companies that have forced the insurance companies to pay for new roofs. This caused the insurance companies to jack up their rates severely. Many insurance companies up and completely left the Florida market. Citizens insurance is usually the cheapest insurance company available these days, which is the insurance of last resort in Florida. Citizens will make you go to a regular insurer if their rates are within 20% of what citizens rates are - as they have taken on way too much risk.

The legislature has tried  to solve the insurance crisis a couple times, but I haven’t seen rates  start to come down at all. At this point, they’re just trying to keep the insurance companies that are still here from leaving.

Randy