In Southwest Florida, homeowners are grappling with the rising costs of wind and hurricane insurance, leading some to take significant risks by going without coverage.
Vern Karst has lived on Fort Myers Beach since 2001. "When I first bought this house in 2001, yes, I had hurricane and flood insurance, and it was pretty reasonable at that time," Karst said. But now, with the costs skyrocketing, Karst made a bold decision. "I just decided to go naked," he said, referring to dropping his wind and hurricane coverage. "I'm retired. I can't afford that."
Karst showed how high the water rose on his elevated home during Hurricane Ian, causing between $80,000 to $100,000 in damage. Fortunately, his FEMA flood insurance covered most of it. Despite the risk, Karst believes many in the area have also foregone insurance. "A lot of people don't have it from what I know. Yeah! They don't," he noted.
State Representative Adam Botana (R-Dist. 80) is among those who chose to self-insure. "There's no bank involved, and I felt comfortable saying I'm going to do this. I mean, what does that insurance do? You pay $50,000 a year, and it covers up to $250,000. What's the point?" Botana explained. He acknowledged that insurance is the biggest issue lawmakers face. "It's the #1 issue that I get emails about every week," he said.
Botana's family marina, located just yards from the Gulf, sustained millions of dollars in damage from Hurricane Ian but was insured. "There are dents on the roof of my office, and that's because the boats were floating that high," Botana recounted.
Experts warn that self-insuring is risky because many homeowners may not save the necessary funds to rebuild after a disaster.
For most people, their home is their biggest asset, making this gamble a precarious one. As insurance rates continue to climb, the dilemma faced by residents like Karst and Botana highlights the urgent need for solutions to this growing problem.