Hurricane Ian hit Florida's real estate market.To translate the speech, click on the microphone.

In the fall of 2022, Florida was hit hard by Hurricane Jan, exposing significant vulnerabilities in the home insurance market. Premiums skyrocketed and several insurance companies went bankrupt. This situation is likely to affect other US states affected by climate change, where it will become increasingly difficult to obtain home insurance and therefore mortgages.

Interview with Mark Friedlander

We spoke with Mark Friedlander, director of corporate communications at the Insurance Information Institute. Even before Hurricane Jan, Florida's real estate insurance market was in serious crisis. First, the state was experiencing a glut of lawsuits. Last year alone, more than 107,000 lawsuits were filed over''real estate insurance claims in Florida, representing 81% of all claims in the US! Even then, the situation was already very dire.

Second, unscrupulous roofers convince homeowners to sign a document called an "assignment of benefits" (AOB) in favor of the contractor. This gives the contractor full rights to the insurance payout and allows him or her to overcharge the insurance company for roof repairs, which in most cases are not legitimate losses. The contractor can also sue the insurance company without your consent if the company denies the insurance claims, which happens frequently. It is these two factors that have served to kill at least six Florida insurance companies this year, and 27 other insurers in''s question about how much premiums have increased significantly because of all these problems. Friedlander responds that the average cost of home insurance in Florida is now $4,231, nearly triple the national average. And compared to last year, this year's insurance costs are up 33% on average across Florida, while the average increase nationwide was 9%. And we can likely expect premium increases of between 40% and 50% for next year, given both the increasing number of lawsuits and a major catastrophe.

The future of the insurance market

The question arises as to what would happen to the Florida real estate insurance market in such a situation. Will people opt out of''insurance for their homes or will they stop buying new homes? Friedlander notes that it is currently very difficult to find insurance coverage for Florida homes. There are very few options, as few insurance companies issue new policies.

Long-term outlook

The long-term forecast for the insurance market in Florida is discussed. Friedlander notes that this market will continue to decline as we will likely lose several more struggling small regional insurers, making the market even tighter and making it more difficult for not only homeowners but also new buyers to purchase insurance. Bottom line''Categories. Insurance companies suffered huge losses. This has caused a catastrophic situation in the Louisiana real estate insurance market comparable to Florida. However, it is a much smaller market, so not as many homeowners have experienced problems as in Florida, but it is still a problem for many residents of this state.

In the last 16 months, nine small regional insurers have gone bankrupt and the market has shrunk very badly. Unfortunately, virtually no private insurers are now issuing new policies, especially in the most hurricane-prone areas in the southern part of the state. As a result, Louisiana's state-run reverse insurer, Louisiana Citizens Property Insurance Corp. has roughly quadrupled since the beginning of the year. A major