South Florida homeowners weigh risks as some go without insurance ahead of hurricane season
Florida ranks among the most expensive states in the nation for home insurance, prompting some South Florida homeowners to forgo coverage altogether – even as hurricane season approaches.
According to Bankrate, only Nebraska and Louisiana outpace Florida in average home insurance costs.
In recent months, extreme weather already has underscored the risks.
An EF-0 tornado struck Palm Springs North ahead of the official start of hurricane season, damaging homes and forcing residents to rely on neighbors for help.
"It was so violent that you couldn't see anything," resident Carlos Varela said. "All you saw was stuff flying through the air".
For some families, recovery comes without the financial safety net of insurance.
In Fort Lauderdale's Edgewood neighborhood, historic rainfall three years ago led to severe flooding that left several feet of water inside homes, including those owned by Tony Schrieber."The water that day came very fast," Schrieber said.
Schrieber owns two houses on the same block. One was covered by flood insurance, the other was not. After restoring both properties, he said he recognized the value of flood coverage, calling it "reasonable compared to the damage it caused".
Still, Schrieber has chosen not to carry hurricane insurance on one of his properties.
"It's a risk decision," he said. "It's just one I've made on this property that I might not make on another. I'm not naive to hurricanes, it's just a calculation".
Industry experts say his decision is not uncommon.
Some homeowners opt to "self-insure" if not required to have coverage
An insurance agent with Keyes Coverage estimates that roughly 15% of South Florida homeowners without mortgages also go without home insurance.
Without lenders requiring coverage, some homeowners opt to "self-insure," setting aside personal savings instead.
Mark Bluh, an insurance agent with decades of experience, said the cost of insuring an average $400,000 home in Miami-Dade County can reach $10,000 per year.
About 60% of that total is tied to hurricane and wind coverage.
Even Bluh said he understands the temptation to drop coverage.
"I am in the business, and I know how much it costs," he said. "I would seriously consider doing away with some of those expenses when I finally pay off my mortgage".
However, he cautioned that self-insuring requires discipline many homeowners lack.
"A lot of people have the best intentions," Bluh said. "But after a couple of years, they see money accumulating and think they can hold off".
As South Florida enters another hurricane season, homeowners face a difficult balance between rising costs and the unpredictable threat of severe weather.