The Rising Cost of Home Insurance in Florida: A Retiree’s Struggle After a Devastating Fire | S.Brown

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Homeowners in Florida are no strangers to the soaring costs of insurance, a reality that has prompted some to take the route of self-insurance. Local10.com reports that the average homeowner in Florida is shelling out about $6,000 annually for homeowners insurance. This steep price has led to a trend where homeowners, instead of paying an insurer, set aside money for future repairs or damages – a practice known as “self-insuring.” Click Orlando notes that approximately 15% of Floridians are now self-insured.

The Risks of Self-Insuring

Despite its growing popularity, self-insuring comes with significant risks. Florida’s Insurance Consumer Advocate, Tasha Carter, highlighted these dangers in a statement to WESH in September of 2023. She pointed out the difficulty in predicting and preparing for unforeseen circumstances, casting doubt on the effectiveness of self-insurance in the face of catastrophic losses.

A Tragic Example in St. Petersburg

The story of Gloria Maxwell, a 75-year-old retiree from St. Petersburg, brings these risks into sharp focus. Maxwell, who had lived in her home for 50 years, found herself uninsured after her insurer dropped her due to an aging roof. In July of 2023, a fire rendered her home uninhabitable, causing damages estimated at around $60,000. On top of this, she owed thousands for solar panels installed before the fire. Relying solely on social security, Maxwell faced immense financial strain, as reported by The Tampa Bay Times in late October of 2023.

Neighborhood Complaints and Code Enforcement Complications

Compounding Maxwell’s woes, complaints from neighbors led to code enforcement involvement, resulting in additional fines. Although code enforcement offered resources like a dumpster and connections to home assistance programs, the financial burden continued to mount. Despite a 180-day extension to address violations, Maxwell faced a daily fine of $100 until compliance.

A Struggle for Assistance and Hope

While Maxwell expressed gratitude for the extension, stating it restored her faith in people’s care, she still struggled to afford repairs and did not qualify for any home assistance programs. As she told The Tampa Bay Times, the financial stretch she is experiencing is a significant burden, especially for a senior citizen.

Maxwell’s ordeal underscores the challenges faced by many Floridians who opt for self-insurance, especially amidst rising insurance costs. Her situation also highlights the need for community support and more accessible assistance programs for those in similar circumstances. As Floridians grapple with these insurance issues, stories like Maxwell’s serve as a stark reminder of the potential consequences of the state’s current insurance landscape.