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Obviously, building in flood-prone and hurricane-prone areas is a problem. Insurers enjoyed a relatively long period of time, from the 1940s through the 1980s, experiencing a low rate of hurricane activity. This was reflected in the actuarial tables, but then starting in the 1990s, with Andrew, and then continuing on there have been far more hurricanes than the historical average (I think it was 2004 where we had four in one year). So much development is right on the coast line, the most vulnerable area.

There also is the age-old problem of fraud. Enterprising home contractors persuade homeowners that their roofs need to be replaced (an asphalt tile roof in Florida is good for about 15 years). Contractors are adept at claiming storm damage, sometimes with a bit of truth but more often without, and then getting an insurer to pick up the tab. This has become a very serious issue for property insurers, and not surprisingly litigation on that particular subject has exploded. In my Central Florida, non-waterfront area, insurance premiums increased 80 percent this year. I tried to shop for a new insurer but nobody, save for the state insurer Citizens, will issue new policies to homes with roofs more than 7 years old.


Link: Hurricanes in Florida from 1850