Homeowners in Collier County are facing a common complaint: insurance rates have skyrocketed, especially in the aftermath of Hurricane Ian.
Insurance experts attribute the high premiums to two primary factors: geographical location and reconstruction costs. Doug Nellans, president of the Insurance Center of Fort Myers, explains that living closer to the coast and further south generally means higher insurance costs due to the increased risk of hurricanes.
“So two of the major variables that go into pricing homeowner's insurance are the geographical location of the home and, not surprisingly, the reconstruction cost of the home,” Nellans said. “Generally speaking, the further south you go and the closer to the coast you go, the cost of insurance is going to increase because those homes are in close proximity to the path of hurricanes.”
Janie and Jim Nicholson, who live near Vanderbilt Beach, experienced significant damage from Hurricane Ian.
“We got around 8 to 12 inches of water and muck inside,” Jim Nicholson said.
The financial impact was substantial, with their insurance premiums increasing by nearly 50% within a month after the hurricane.
A recent Florida Office of Insurance Regulation report highlights the steep costs, showing average annual property insurance premiums as of March 31: $3,514 in Lee County and $5,315 in Collier County.
Nellans also pointed out that higher reconstruction costs in Collier County contribute to the elevated insurance premiums.
“The reconstruction cost of the average home is a bit higher than other counties, particularly Lee. So those require higher limits of insurance and higher limits of insurance cost more premium,” he said.
Despite the high costs, there is a glimmer of hope.
“As a matter of fact, we're starting to see some early indications of the pricing problem leveling out and moderating,” Nellans said.
However, he cautioned that the trend will depend heavily on weather conditions this hurricane season.