LAKE WORTH BEACH, Fla. — There seems to be no end to the high prices of buying a house in South Florida. Not only are the prices going up, but there are taxes and insurance.
Insurance is so high many people said they can't afford a home, may have to sell their home or buy the bare minimum to have a home.
"My homeowners insurance went from $2,300 to $4,489 this year," homeowner Barbara Resch said.
She doesn't have a mortgage. But for somebody on a fixed income, this Lake Worth Beach resident's increase in insurance premiums will come at a cost.
"To be able to afford it, it's nearly $400 a month out of my fixed income to pay my homeowners insurance every year," she said. "I can't afford to have hurricane insurance anymore because that was running nearly $5,000."
So, why is homeowners insurance skyrocketing?
Lee Burke, with Burke, Bogart, and Brownell Integrity Insurance, said the state legislature needs to pass laws that help curb the rampant claim abuse and fraud.
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"If we didn't have the fraud and abuse, there would be a much more competitive insurance market," he said. "Right now, there's not. So, there would be more options for people to buy insurance."
Burke said the consumer is paying for the fraud and abuse. They are also paying for the soaring home values across our area.
"And the insurance industry has to buy re-insurance to be able to pay the claims," he said. "That re-insurance is exceptionally expensive because of the amount of damage that can happen here from one storm."
In 2021, Insurance.com estimated the average home insurance cost in Florida was $3,600 — $1,300 more than the national average.
"If Florida doesn't take drastic measures, we may not have any insurance market for a large portion of homeowners insurance buyers in the near future," Burke said.
Resch said in 34 years she has never had a claim.
"If it goes up again next year, I'm not going to be able to afford to continue," she said.
Burke said the homeowners insurance industry lost $1.6 billion in Florida last year and fewer insurance companies are providing policies in the state.