Last year, Rachel Muse-Connealy, a resident of St. Petersburg, Florida, experienced significant damage to both her owned and rented homes due to floods caused by hurricanes. The destruction caused by Hurricane Idalia to her owned home and Hurricane Helene to her rented home increased her financial burden and set back repairs to her original property. Muse-Connealy was forced to evacuate once more due to Hurricane Milton, leaving her feeling unsure about her future in the state.
The real estate market in Florida has seen a slow-down this year after experiencing a surge in prices during the early years of the pandemic. More than 70% of homes were sold under their listing price, indicating a shift in the market. Homeowners like Muse-Connealy are now faced with the decision of whether to sell their damaged properties at a loss or try to rebuild. The uncertainty of future storms, mounting insurance costs, and expensive property repairs have led many residents to reevaluate their long-term plans in the state.
Many longtime residents of Florida are feeling the financial strain of increased costs. Homeowners are experiencing skyrocketing insurance rates due to the frequent occurrence of hurricanes and floods, which have caused significant losses for insurance companies. As more people consider leaving the state due to rising costs, the housing market is facing challenges, with properties sitting on the market longer and inventory growing. Those like Tina Villanueva, who are feeling the bite of rising utility, insurance, and tax costs, are contemplating moving out of the state.
Chuck Nyce, a risk management and insurance professor, highlights the possibility of further increases in homeowners’ insurance rates in Florida following Hurricane Milton. Flood insurance, often backed by the government, can provide some coverage for water damage, but there are limitations to the program. Insured losses from flooding caused by previous hurricanes have been estimated in the billions of dollars, indicating the financial toll natural disasters take on residents. With fewer Central Florida homeowners having flood insurance policies, many are left facing significant out-of-pocket costs for repairs.
For some homeowners like G. Michael Harris, who experienced extensive flooding in his home during Hurricane Helene, the decision to stay in Florida is not based solely on financial considerations. Despite losing nearly everything in the flood, Harris plans to rebuild and stay in Belleair, where he has lived for 35 years. For many long-time residents, the bond to their community and the hope that insurance will help them rebuild outweigh the financial challenges they face. However, for others like Muse-Connealy, the repeated damage, increasing costs, and uncertain future have led to considerations of leaving the state in search of a more stable environment.
