Anyone live in Mobile AL or Pensacola FL?

[doneby35]

I'm having a hard time figuring what homeowner insurance (including flood insurance) will cost in these 2 regions (let's say a 1500sqft home worth 200-250k). Since they're on the coast, I assume the possibility of hurricanes will increase the cost. I'm not able to get a proper estimate from the insurance websites and they each have very different averages. Thought I'd check with people online before I go about physically driving there and interrogating folks.

[SweatingInAR]

Insurance rates are changing so rapidly in Florida that you will need to pick a hypothetical house (on Zillow or whatever) and ask an insurance agent.

I had a 2400sf house 5 miles from the Atlantic in Brevard County, FL. The only insurance provider that would cover it was "Citizens", Florida's non-profit "insurer of last resort" https://en.wikipedia.org/wiki/Citizens_Property_Insurance_Corporation
June 2021 - June 2022 = $1571
June 2022 - June 2023 = $2092

If I am reading my policy correctly, a new policy in 2022 would have cost me $3,336.

For the area, a $500 increase in 2022 was considered really cheap. Lots of roofs are becoming too old to insure in that area. Something will have to change in the roof and insurance market to stop abuse by companies like "roof hustlers" from billing insurance companies for new roofs. I wouldn't be surprised if the insurance companies take ownership of Florida roofs and charge $1k-2k "rent" so the homeowner doesn't have to front the cost of a roof every 15-20 years.

[uniwelder]

I would not recommend buying a house in either location. With climate change and sea level rise, you’re throwing money away, unless counting on taxpayers to bail you out.

[dcheesi]

I would not recommend buying a house in either location. With climate change and sea level rise, you’re throwing money away, unless counting on taxpayers to bail you out.

This is something all of us beach-lovers are going to struggle with in coming years.

For us, we're trying to find a compromise where we can enjoy the beach setting for a couple of decades, then move inland in our elder years. The trick is that the usual game plan of selling one property to buy another may not work out so well if the first property is (literally) underwater by then. So we also have to look for even cheaper land/housing stock than we might otherwise, just so it won't hurt too much to lose value there.

[uniwelder]

Here's a podcast episode about home insurance in Florida---  https://www.marketplace.org/shows/how-we-survive/risky-business/  Its part of a climate change series I've been listening to.  Its 30 minutes long, but put together really well.  Its put together by Marketplace on NPR, if you happen to listen to that show.

[SweatingInAR]

Here's a podcast episode about home insurance in Florida---  https://www.marketplace.org/shows/how-we-survive/risky-business/  Its part of a climate change series I've been listening to.  Its 30 minutes long, but put together really well.  Its put together by Marketplace on NPR, if you happen to listen to that show.

Thank you for posting that podcast! I hadn't looked into the history of the insurance situation before. I was only aware of the explosion in the last 5-10 years.

[JGS1980]

I would not recommend buying a house in either location. With climate change and sea level rise, you’re throwing money away, unless counting on taxpayers to bail you out.

Per FEMA, you only qualify for emergency aid if you chose not to carry insurance, ha! The amazing moral hazard is that FEMA and the SBA are producing payouts and subsidized loans to hurricane victims MUCH FASTER than private insurers. I'm talking 2-3 days later you have a check in your hand.

[Sugaree]

I lived in Mobile up until 2008.  I was north of I-10, out in West Mobile and rates weren't too bad at that point in time, especially considering that it was just a year or two after Katrina and Ivan.  There was at least one insurer (Allstate, I think?) who wouldn't write a homeowner's policy at all unless you already had an auto policy with them for at least six months.  Some weren't writing new policies south of the Interstate at all. 

[doneby35]

Thank you for the responses. After a bit more research, and as others have mentioned, it doesn't appear to be such a great idea to own a home in those areas. Shame as the coast looks pretty nice.