Search

Florida's home insurance industry is facing significant challenges, with seven insurers going bankrupt in recent years. This has left many homeowners struggling to find new coverage, often at higher costs, and with unresolved claims for hurricane damage. A working paper by researchers at Harvard University, Columbia University, and the Federal Reserve suggests that Florida's insurance market may be more precarious than previously thought, with lax regulation and monitoring contributing to the problem. The paper also highlights how the rating system used by Demotech, Inc., an insurance ratings firm, allows risky mortgages to be passed on to government-sponsored enterprises like Fannie Mae and Freddie Mac. However, Demotech's president disputes these claims and argues that the real issue is consumer and contractor fraud. The study's findings are concerning, and experts suggest that the GSEs should update their criteria for insurance ratings. Florida officials have also expressed concerns about Demotech's ratings, but the company has downgraded only a few insurers due to political pressure. The situation has caused financial chaos for some homeowners, leading to a loss of faith in the insurance system. [Extracted from the article]

"Building codes are absolutely essential, but the more concentration [of assets in a place], the higher the risk is just going to be", said Matt Junge, the US head of property underwriting for Swiss Re. (Bloomberg) -- Since Hurricane Andrew in 1992, Florida has been toughening up building codes and touting them as a way to prevent large-scale damage in the wake of strengthening storms. [Extracted from the article]

(Bloomberg) -- The US hurricane season officially kicks off next week, and no other place in the country is more vulnerable to storm-related damage than Florida, the fastest-growing state in the nation. Insurance rates jumped 27% in 2021, 33% in 2022, and are expected to rise at least 40% this year (maybe 50%), according to the institute, which would put the average price at $6,000.Florida's Office of Insurance Regulation blames this on fraud not hurricanes, pointing out that Florida accounts for 9% property insurance claims in the nation, but more than 76% of property insurance lawsuits. [Extracted from the article]

(Bloomberg) -- There are few places to purchase a home in the U.S. that have a greater risk of flooding than on the coast of Florida. "Since so much flooding happens outside of the floodplain, you really need concrete details of each homeowner's experience to understand flood risk", said Scata. [Extracted from the article]

The article focuses on flag football, which is among the fastest-growing varsity sports for high school girls in Florida, and an issue raised by a lawyer for the National Women's Law Center over whether the sport provides girls similar educational opportunities as boys.