A 68-year-old retired homeowner in coastal Florida with a $620,000 paid-off home saw annual property insurance premiums rise from about $4,200 in 2020 to over $14,200 in 2026. The mortgage is gone, but the insurance bill now functions like a second mortgage. The premium increase adds roughly $10,000 per year, which can total about $200,000 over 20 years. Florida’s disposable income per capita is $64,461, so a $10,000 shock can take about 15% of disposable income. Consumer sentiment is weak and savings rates have declined. Social Security transfers are being strained by insurance resets driven by post-hurricane reinsurance pricing. Options include raising deductibles and pre-funding gaps, shopping for coverage, and considering policy structures that reduce premium exposure.
"Post-Hurricane Milton reinsurance pricing has effectively imposed a private tax on coastal homes, and it does not negotiate with your COLA. Three options that actually move the bill Raise the hurricane deductible to 5% to 10% and pre-fund the gap."
Read at 24/7 Wall St.
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