Insurance rates are driving many on fixed incomes
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11/22/2006
I grew up in Pensacola and have lived here most of my life. I have always loved the beaches and piney woods on Northwest Florida and the climate is great (of course I like summer days with temps and humidity in the 90's). I am retiring in a couple of years and had planned to stay here but the cost of living has soared since Hurricane Ivan. In 2003 my homeowners insurance rose from about $800 per year to $1300 when Nationwide dropped us from windstorm insurance and we had to go to the state-run Florida Windstorm for hurricane protection. By law Florida Windstorm has to be more expensive the the most expensive private insurer. After Ivan (and a bad experience with Florida Windstorm) we switched to State Farm. Our premium jumped to $2300. This year our premium has jumped to $7800. (And we have never filed a claim with our insurance company) Our experience is pretty typical. And these rates will continue to climb. One insurance agent I spoke with said this is just the first installment. And we live 5 miles from the Gulf and over a mile inland from the bay at an elevation of 57 ft. Rates are much higher if you live on the water or at the beach.
Property taxes have also jumped since Hurricane Ivan. With less available undamaged property after Ivan prices soared and the County and City reassessed everyone based on the new higher property values. In addition, the cost of labor and materials has soared since Ivan so rebuilding or repairing damage, etc. is much more expensive. We had bids for installing hurricane shutters on our house and every bid was between $1800 and $2000 per window. Since we have over 30 windows in our house the price is prohibitive for us.
Right now I am still getting out a 28 ft extension ladder and screwing up plywood on my windows. It takes 2 full days to complete. But as I get older this will become impossible as will living in Pensacola.
James | Pensacola, FL