Coastal Insurance Insanity

Reading articles likes this one makes me glad that we live nowhere near the coast. One homeowner in Key West, Florida last year had a wind storm premium for her 1500 square foot home of $14,472. That is absolutely insane, but it’s apparently not unusual.

Another Key West homeowner has a wind policy premium of $11, 856, a relative bargain until you realize that it carries with it a deductible of $18,000. You read that right (assuming, of course, that USA Today printed it right). That means they will pay eighteen thousand dollars before they can even hope to collect a penny from the insurance company – and for this privilege they paid nearly twelve thousand dollars in the last year.

Even some homeowner policies in New York City are being cancelled because there is an off chance that it may be hit by a hurricane. It could happen, you know – though the last time it did was nearly 70 years ago, and it’s not like it below sea level like New Orleans or anything. Why is it we want to live near the ocean again?


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