Tampa Bay dodged Hurricane Ian last week. Fort Myers and Cape Coral were not so lucky. But even though our homes are standing, the insurance fallout from Ian is about to hit every Tampa Bay homeowner hard. Six Florida insurance carriers have already gone insolvent in 2022. After Ian, expect more to follow — and premiums across the state to spike 25-40% at your next renewal.
What Is Happening with Florida Home Insurance?
Before Ian even made landfall, Florida's insurance market was in crisis. Citizens Property Insurance — the state's insurer of last resort — had grown to 1.1 million policies because private carriers kept leaving. Average premiums in Florida were already 3x the national average. Ian is projected to generate $40-60 billion in insured losses. Private carriers that were barely surviving will now face catastrophic claims.
How Will This Affect Tampa Bay Home Values?
Insurance is now a material factor in affordability. If your premium goes from $2,000/year to $4,000/year, that is an extra $167/month — equivalent to a $25K reduction in purchasing power at current rates. Homes with newer roofs, hurricane shutters, and wind mitigation features will command premiums because they qualify for lower insurance rates. Homes with old roofs or in flood zones will face headwinds.
What Should Homeowners Do Right Now?
Get a wind mitigation inspection ($75-$150) — this documents features that reduce your premium. Shop your insurance — do not auto-renew without comparing 3-5 carriers. Consider your roof — if your roof is over 15 years old, some carriers will not insure you at all. A new roof ($12K-$20K) can save $1,500-$3,000/year in premiums. Check your flood zone — if you are in Zone X, make sure your agent knows. If you are in Zone A/AE, flood insurance is required and costs are rising.
Have questions? Barrett Henry, REALTOR® and Broker Associate at REMAX Collective, brings 23+ years of real estate experience. Call (813) 750-0926 or email barrett@nowtb.com.