SWFL.io - Local NewsFlorida homeowners could see insurance premiums rise between 33% and 75% by 2035, according to a new report commissioned by the Coalition for an Insurable Future, which attributes the increase to the growing impacts of climate change.
The report paints a troubling picture for millions of families, with some households expected to spend more on insurance than on property taxes and gas combined.
Leonardo Lemus, of San Carlos Park, shared his concerns, saying, "People make the same amount of money and prices keep going up for everything else."
Prepared by Mandala Partners, the 52-page report reveals that climate risks could cost the U.S. economy $1 trillion by 2035. Doug Nellans of The Insurancenter described the findings as grim, stating, "The report reads almost like a doomsday prophecy. It paints an especially bleak picture for us here in Florida."
The report warns that soaring premiums and uninsurable homes could trigger a financial crisis.
Eric Craig of Fort Myers explained his decision to self-insure, saying, "With the insurance rates where they were years ago, I made the decision to self-insure. I just keep money in the bank. If I have damage, I pay for it. I fix it and I don't worry about insurance rates."
The report also predicts that Charlotte County homeowners could see a 100% increase in premiums by 2035. Nellans added, "We're in the bullseye when it comes to the predictions in this report."
Mark Friedlander of the Insurance Information Institute rebuked the report, saying, "The bottom line is property insurers cannot accurately price risk that far ahead." He further criticized the findings, stating, "It's fear mongering! It's scaring consumers without scientific data. To us, it's very irresponsible."
Friedlander acknowledged that past predictions of rate increases have proven accurate, noting, "If the prediction had been made in 2016 that Floridians would be paying twice as much in 2026, it would have been right." He added, "Based on forecasts our economists have done, Florida rates will continue to moderate over the next year or two. Subject to change!"
The report also highlights that other states, such as South Carolina, could see rates soar by 200% by 2035. Homeowners are encouraged to review their insurance rates and consider the financial implications of relocating.
The Coalition for an Insurable Future said, "Homeowners and policyholders deserve to know how the climate insurance crisis could impact their financial security. This report was conducted using the most reliable and widely accepted data to estimate future increases in premiums and shine a light on the impending economic crisis in our insurance system due to worsening weather."
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